Avoid buying life insurance just to save income tax

The life insurance business has grown manifolds in India because of the efforts put up by million agents, lakhs of insurance employees. Despite there exists a general assumption that life insurance is a medium to avoid the income tax liability to a huge limit, one shouldn’t think of saving income tax as his main aim of purchasing a life insurance policy. However, this is a hugely believed wrong concept. The life insurance deals has grown rapidly in India because of the efforts put up by million agents, and lakhs of employees of insurance firms like LIC, who showed the importance of financial security through life insurance to nearly each household in urban and rural areas, the Financial Express reported. The report states, the phenomenal increasing efficiency of insurance salesmen in the past quarters of a fiscal, nonetheless, believes on the fact that life insurance is sold just for saving personal tax. It’s partly correct that in the last quarter most people concentrated on selling and buying life insurance for such benefits. There exists a large unit of people who would like to reduce tax liability after paying life insurance premium in the required year.