We all know that there is a lot to insure, but do we really know what insurance is? The dictionary definition of Insurance is the act, system, or business of providing financial protection for property, life, health, etc, against specified contingencies, such as death, loss, or damage, and involving payment of regular premiums in return for a policy guaranteeing such protection. A comprehensive and cover-it-all definition, don’t you agree?
Most of the time (and specifically in India), we think of insurance either as tax saving option or as an investment. Both are big myths that we need to be aware of!
Even though we do get tax exemptions for insurance premium, provided we satisfy certain conditions (like your life cover should be more than 10 times the premium paid etc), there are many other options on tax saving that you can choose from depending on age and profile, like ELSS Continue reading