Insurance an Attractive Mode of Investment

When we talk about insurance, its not because we are thinking of it as a form of an investment. We are thinking about the rate of returns that we will gain incase we have to deal with the risks attached or also because some friend of ours insisted that we go for it as there are a lot of advantages with it. Come to think of it and we realize that Insurance is a very fancy mode of investment in all our highly important things of being. Investing in our Life, Health, Travel and on the Vehicle we drive or ride.

Insurance can be a valuable addition to our lives and our investment portfolios. Declining it or neglecting it for all the deniable reasons will only affect the life you always aimed at living with peace. Insuring vehicle is mandatory, but can we also put a self mandation on insuring our health, life and travel adventures???This might not sound very interesting but ensuring that insuring all these will surely help you gain tax benefits definitely sounds appealing and attractive.

Lets see the benefits of Insuring each of these and “the forms of investments” you are indulging in if you Invest in Insurance.

Investment in Life Insurance:

Jaan hai to jahan hai!!

To ensure you insure your life should be the biggest goal of a human being. “ If you love life, life will love you back” stands true with Life Insurance as an investment in it will surely be an added reimbursement over all your other tax liabilities.

Good candidates for life insurance investment are people in the high income tax brackets.

Depending on the investments and tax bracket of the policy owner an individual in a high income tax bracket can buy a customized(Death benefits can be minimized)policy which reduces the policy cost and increases the enhances the cash value. A person who also invests in alternative investments or bonds earn short term capital gains. By buying Life Insurance the owner is sheltered from paying the income tax as it just wraps up all his other investments. To use Life Insurance as an investment vehicle, one must have a very wide and long term horizon in mind. Considering it as a long term investment is imperative as it takes a few years before the internal rates of returns (IRRs) on cash value begin to look favorable compared to a taxable investment account.

Investment in Health Insurance:

Human health is a treasure to oneself. “Swasthya hi Jeevan hai!! ” By investing on health one is primarily investing in his years of saving, securing his retirement plan and also investing on securing his relationships with utmost peace of mind.

Health Insurance plans have a lifelong renewability feature. You can now renew health plans for as long as you are alive without any maximum renewal age. In your old age, your income is low and the medical contingencies are high. If you have a health plan, any medical contingency you face would be covered by your health plan thereby sparing your savings which ultimately means you are investing in your future. To enjoy lifelong renewability, you should not only buy a health plan, but also ensure its timely renewals.

Investments are generally wealth appreciation methods. What better way of investing if not in health. Infact, Health Insurance can help you save tax. Health insurance is exempted in Section 80D. If you pay Health Insurance premiums for yourself and for your dependent parents (Senior citizens), you can claim a certain amount as tax exemption.

Health Insurance is a beneficial investment mode for long term for young blood. If you are young, healthy and hearty, then buying a health insurance can prove to be really easy for your pockets. You get a lot of benefits including a coverage period, low premiums, a higher sum assured and much more.

Investment in Travel Insurance:

It’s a short term investment, which makes sure you enjoy all your travel adventures with utmost peace of mind. Its basically investing in your mental peace. Travel Insurance investment may not help you gain tax benefit, but it surely does help you invest in exploring new ways of travelling through experiential activities, solo travel, culinary travel and a lot more tension free.