Difference Between Traditional Policies and ULIPS

Difference Between Traditional Policies and ULIPS :-

Traditional Policies	ULIPS
Risk is minimum	Risk is Maximum, it purely depends on market
Invests upto 85% of our premium in bands and can get standard returns.	Can get more profits or returns
In this if once invested cannot be changed	In this if once invested cannot be changed
We are not responsible for the investments done in company on behalf of us. It is soley their discretion	We can guide, where to invest our premium amount. We can select the fields, and branches  and shares.
They can invests on their own with their own decision.	Companies invest maximum amount in Equity/diet markets
Here we don’t know the exact charges. They are bound to be changed from time to time within policy term	Charges are same through out the term.
We can take loan from the policy	We can get returns from 3 years of investment
In this customers doesn’t know exact charges incurred.	We can know the exact charges that has been incurred.
Premium term cannot be increased	Premium term can be increased
ULIPS = INSURANCES(LIFE) + INVESTMENTS(MUTUAL FUNDS)

Income Tax Slab 2015-16

Income Tax Slab of 2015-2016:

Age Under 60 Years

Income	Tax %
Upto 2,50,000	Nil
2,50,001 to 5,00,000	10%
5,00,0001 to 10,00,000	20%
Above 10,00,000	30%

Age 60  to 80 Years

Income	Tax %
Upto 3,00,000	Nil
3,00,001 to 5,00,000	10%
5,00,0001 to 10,00,000	20%
Above 10,00,000	30%

Age above 80 Years (Super Senior Citizens)

Income	Tax %
Upto 5,00,000	Nil
5,00,001 to 10,00,000	20%
Above 10,00,000	30%

Tax Saving Tips 2016-17

New Tax Rebates from this year:-

ü  NPS investment is considered separately – Now Tax free

Previously NPS (National Pension Scheme) investment is shown separately under the part of Section 80 C. But from this year total investment done in NPS can be shown under Section 80 CCD in which you can save upto a maximum of 50,000/-.

This is the increased rebate of Rs 1,50,000 additional.

Due to this,

People who are in 30% of Tax limits can get rebate upto 15,000.

People who are in 20% of Tax limits can get rebate upto 10,000.

People who are in 10% of Tax limits can get rebate upto  5,000.

ü  Increased Health Insurance limits

Increase in the limit of 80 D.

Those who are under 60 Years – Limit increased from Rs.15,000 to Rs.25,000.

Those who are above  60 Years – Limit increased up to Rs.30,000.

They can save a maximum of Rs 5000 for initial Medical Tests but comes under limits of Rs 25,000

Wife and husband , children, parents initial medical tests can be claimed.

Premium paid for parents , if their age is under 60 years upto 25,000 and if above 60 Years upto 30,000 can be saved.

So under this scheme you can save upto a maximum of Rs 60,000.

ü  Increased transportation allowance from 800 to 1600 which is tax free, from which you can save upto Rs 9,600/- per annum.

ü  New scheme for girls: Upto 4.44 Lakhs income tax free

If you are buying Shares for the first time the following tax benefits you can aim for:

Under 80 CCG you can invest in Rajiv Gandhi Equity Savings scheme. Under this scheme you can save upto 50% on the investment.

For Example you can save Rs 25,000 out of 50,000 invested. This can be done upto 3 consecutive years only.

Note: who have crossed 12 Lakhs per Annum cannot get this rebate.

Apart from this all Regular savings are as it is :

Savings under section 80 C

1.    Insurances

2.    5 Years Bank Deposits

3.    Post office Schemes

4.    Equity links savings scheme

5.    PPF

6.    Housing Loan

7.    Tution Fees

New Tax Rebates from this year 2016-17

New Tax Rebates from this year:-

ü  1. NPS(New Pension Scheme) investment is considered separately – Now Tax free

ü  2. Increased Health Insurance limits

ü  3.Increased transportation allowance from 800 to 1600 which is tax free, from which you can save upto Rs 9,600/- per annum.

ü  4.New scheme for girls: Upto 4.44 Lakhs income tax free