79% People want to Insure There Life with Life Insurance

According to a study, uncertainty in the stock market and descending fixed deposit rates have made life insurance the most favored tax-saving instrument for those who have a fixed monthly salary to rely.

“About 79 per cent people are in favor of life insurance as compared to other tax-saving instruments like post office savings, equity-linked saving schemes and fixed deposits,” ICICI Prudential Life Insurance point out in a study.

About 89 per cent of the respondents out of 900 reveal the investment made in the last two years fluctuated from traditional products, unit-linked insurance plans and pension plans.

The conducted survey takes into account a household having a fixed monthly income to deal with the expenditure of whole month. Such a household, on an average, entail two policies.

The survey carried out with the support of IMRB International reveals investment in life insurance is because it has security aspect and comfort of investment in term of comfort of payment, good policies and great service.

It is accessed by the need of protecting family against insecurity, it said.

However, the information about the advantages connected to investment in life insurance product is low, it said.

Consciousness on the tax exemption levels under several sections is low, it said, adding only 17 per cent of respondents in the three metros are known with the maximum amount that can be invested under life insurance in order to derive the benefit of tax.

About 16 per cent of the respondents are known with the Section 80c, under which a policy holder can save tax.

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