Golden opportunity for tax saving

Image Source: Shutterstock If you are already working, you know how important it is to be saving tax, filing returns on time to get your TDS refund at the earliest. The premiums that you pay for your term plan have tax benefits under various sections. You can save a certain amount, which you can calculate using an insurance calculator, from being deducted from your taxable income.  By using an insurance calculator, you can keep a tab of the premiums you pay towards your term plan. With respect to the Income Tax Act, under Section 80(C),you are allowed tax benefits up to Rs. 1,50,000. Under Section 10(10D), you can also claim benefits that your loved ones receive. However, you have to ensure that your annual premium is less than 10% of the sum that you’ve been assured of benefits under the latter section.  Dependents need that protection sooner Usually, there are always some loved ones in our lives, like our partner or our parents, who are dependent individuals. If you contribute to your household's income, then your absence can cause tremendous financial strain to the entire family. A term plan can help you avoid this situation and protect your family.  Using a term insurance calculator, you can find out everything, like the premium you have to pay, the number of years to pay, and sum assured that you could choose for the plan. In other words, using a life insurance calculator will help you calculate how much premium you need to pay to secure your life and that of your dependents.  Lower risk of health issues The younger you are, the more are the chances of not having critical illnesses or facing severe health issues. This helps in opting for a term plan at very low premiums. Further, you can also ensure that you are paying premiums in your earning years and can look back to this term plan if you ever need it for emergencies in your future. These plans are the best way to protect yourself at the right age while also helping you live a stress-free life when you retire.  While you are young and have your prime earning years ahead of you, it is best to calculate your premium using a life insurance calculator and opt for an insurance plan at the earliest. There is no specific right time to buy a term plan to protect yourself and your family. The earlier you do it, the better it will be for everyone.