POSTED BY November 21, 2013 6:55 pm COMMENTS (2)ON
Dear Manish ,
I am salaried & comes in 10% tax slab. Presently I have 3 nos. ULIP policies & I pay around 60000/- per year as premium. I get 6000/- per year tax rebate on premium.
Now, after going through your articles on MF+term insurance, I am planning to stop my all ULIP policies & invest in MF & take term insurance of 25L which will cost me around 4000/-. But by this way I will loose aroud 10000/- per year (6000 tax benefit + 4000 extra for term insurance).
Pl suggest will it still better to invest in MF+Term insurance? waiting for ur valuable guidance.
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2 replies on this article “Cant ULIP outperform the combination of Term Plan + Mutual funds if we consider tax benefit ?”
Dear Sandeep, the prem. paid for Term cover is eligible for Tax benefit under section 80C. if the idea is to get tax benefit also, instead of investing in normal MFs, please invest in ELSS (also known as Tax Saver funds). Your tax benefit ‘ll remain intact and due to Term cover you ‘ll get a high sum assured.
Thanks Ashal for ur prompt reply.