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Women also need insurance


There is increasing number of families with both wife and husband earning making insurance and tax saving mandatory for both them. Especially, earning women should be careful about income tax and should utilize all sources of tax saving.

When you earn more than the limit prescribed by the income tax department, you have to pay tax. So, not only men but women also have to have tax plan. Consider your age, income and personal and family goals to chalk out the tax plan. Most women think of tax savings only during February and March. One has to submit the receipts of tax saving investments to the owners. If working women plan this, there is no need to run helter shelter at the last moment.

Along with savings..

When there are two working people in the family, most insurance policies are taken in the name of the husband and many are of the opinion that women don’t need life insurance. But, since both are the earners of the family and it is always a loss if something happens to any one. So, women also should have life as well as health insurance. Women tend to give least importance to their health and this needs to change. If something happens and with increasing hospital expenses, health insurance along with critical care insurance are a must to save the blushes. There is also scope for savings through investment in insurance policies to gather money for future expenses, children education, and funds needed after retirement.

*Women should take some precautions while taking a life insurance policy. Decide the insurance amount considering family financial responsibilities, expenses and goals. One can examine term policies that give high coverage with low premiums. It is also better to take unit based policies that give higher returns in 10-15 years. Tax saving is just an additional benefit, so always zero in on policy only based on your needs. From April 1, 2012 only 10% maximum of total policy is exempted from tax.
*Women should give due importance to health insurance. The premium paid under this is exempted under 80D upto 25 thousand. Try to save tax by taking the policy for the whole family. policy taken for parents can be claimed up to 25 thousand (30K if they are senior citizens). So, can take policy for parents and provide security to them also.
*There is feasibility of exemption up to 5000 for pre-medical tests. Therefore, women above 30 years must have a health policy. Though exemption works for payment made through cash for medical tests, premiums paid through check are only considered for exemption.

It is also important to choose the right policy. So, first decide the needs, the benefits, the premium, etc. This holds true not only for insurance policies but also for all types of investments. Change policies based on changes in your priorities. The main goal of insurance is to provide financial security and also recognize the fact tax saving is an additional benefit.

According income tax law section 80C, there is scope for tax benefit up to 1,50,000 invested in different schemes, which also includes premium paid for insurance, which holds the premium place in terms of securing your family financially.