Endowment plans are the life insurance policies that serve two purposes. An endowment insurance can be used to build a risk-free savings account that protects the family financially in the event of an emergency. An endowment plan’s clarity makes it a profitable savings strategy for everyone. An endowment policy serves as a financial safety net for the policyholder and his or her family.

ULIP enables the best of both worlds by offering the twin benefits of life insurance and market-linked returns. Hence, you have the opportunity to invest your money to earn higher returns, while taking care of your protection needs.

1. Flexibility to manage your money
2. Transparency of your investments
3. Security for your family’s future with comprehensive maturity and death benefits
4. Long-term market-linked returns on your ULIP investment

Reduce income tax on the amount of money you invest with a life insurance policy. Section 80C of the ITA permits tax deductions on premiums and payouts of life or term insurance plans. Premiums paid towards your life insurance will not be taxed if they are under a total of ₹1.5 lakhs. Section 10(10D) of the ITA allows any payouts received under a life insurance policy to be exempt from tax.

Senior Citizens Savings Schemes can be availed by any individual above the age of 60 years. They are effective savings options for the long term and offer attractive features and unmatched security.

Why to invest?

• Dual benefits of attractive interest rates and tax saving
• Invest as small as ₹10,000
• Get tax deduction up to ₹1,50,000 under Section 80C
• Flexible interest pay out – monthly, quarterly or reinvestment in principal
• Know before you invest
• 5-year lock-in period
• Minimum investment of ₹10,000 and maximum of ₹150,000 for a duration of 5 years
• Nomination – Nominate a single nominee to your account proceeds, whether held solely or jointly. No premature withdrawal and auto-renewal facility
• Interest earned is taxable
• FD allows only a one-time lump sum deposit

Senior Citizens Savings Schemes can be availed by any individual above the age of 60 years. They are effective savings options for the long term and offer attractive features and unmatched security.

Some of the main benefits of the scheme are:

• Tax benefits are provided
• Safe to invest in the scheme
• Interest rate has been reduced from 8.6% to 7.4%
• Premature withdrawal is allowed

National Saving Certificate (NSC), a part of the Indian Postal Service is a type of savings bond provided by the Indian Government used for small tax savings.

National Saving Certificate Benefits:

• Except the interest earned in the last year, it can be totally tax-free
• The denominations range between Rs 100 and Rs 1000 for investing in NSCs but can invest according to your status as there is no limit set on the amount
• One can have the benefits of saving taxes as it comes under Income Tax Act, Section-80C which provides with the benefits as the Investor Tax
• An applicant can apply for the certificate on minor’s behalf also
• It is a possible way to secure loans

Sukanya Samriddhi Yojana (SSY) is a savings scheme launched back in 2015 as part of the Government initiative Beti Bachao, Beti Padhao campaign. This scheme enables guardians to open a savings account for their girl child with an authorized commercial bank or India Post branch.

Double Tax Benefits:

• Under Section 80C of Income Tax Act, deposits up to Rs.1,50,000 are eligible for a deduction
• The interest earned on the deposit is tax free
• Attractive rate of interest
• Account holders can earn 7.6% interest (01.10.2020 to 31.12.2020) on their deposits
• Yearly interest credited in the account at the end of Financial Year

Public Provident Fund Scheme is a Central Government scheme, framed under the PPF Act of 1968. Thus we can say PPF is a government backed, long term Small Savings Scheme. The Scheme offers an investment avenue with decent returns coupled with income tax benefits.

PPF Product Features:

• Attractive interest rate of 7.1% that is fully exempted from Income Tax under Section 80C
• Good long term investments of 15 years
• Minimum deposit Amount is Rs.500 and maximum Rs.1,50,000 in one financial year
• Loan can be availed between 3rd to 6th financial year
• Partial withdrawal facility can be availed after completion of 5 financial years
• Account can be extended in a block period of 5 years after maturity

National Pension System (NPS) is a defined contribution based pension scheme wherein the subscriber contributes to his/her account regularly. Any Citizen of India with age between 18 to 65 years can join NPS. Under NPS, individual savings are pooled in to a pension fund which are invested by PFRDA regulated professional fund managers as per the approved investment guidelines in to the diversified portfolios comprising of Government Bonds, Bills, Corporate Debentures and Shares.

Features

Features Choice of fund option

Tax Benefits & Pension Planning Various Tax Benefits available u/s 80 CCD 2 upto 1,50,000/- + upto Rs 50,000/- u/s 80 CCD 1 (B) as well as plan for retirement income.

Ease of access The NPS account can be managed online. Once NPS account is opened, online access credentials is provided by CRA (KARVY). Subscriber can login and view/manage his NPS account online.