I am a software engineer and have a annual income 3.5 lacs, I want to know how can I insure myself, so that I can save maximum tax that I`have to pay.
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I am a software engineer and have a annual income 3.5 lacs, I want to know how can I insure myself, so that I can save maximum tax that I`have to pay.
Please do not look at insurance as a tax saving measure only. Tax saving is an incidental benefit you are getting with Insurance Policy. If tax saving alone is the objective then there are better methods of investing. To cover yourself, Please take term insurance for Rs.50L for an annual premium of about Rs. 12000 to 14000, if you are in the age bracket of 25 - 27. This premium is also eligible for tax benefit. Objective of insurance is risk protection or indemnifying the loss and having protected the risk adequately invest rest of your money in PPF, EPF, NSC, ELSS of mutual funds etc. to build wealth.