The primary need is buying financial security for your family. Other aspects that insurance helps fulfill are:

Tax benefits

The Tax exemption available under our insurance and pension policies are described below:

* Under Sec.80C of the Income Tax Act
Premiums paid upto maximum of Rs.1,00,000/-, subject to maximum of 20% of Sum Assured ,to effect or keep in force an insurance on the life of the individual, the spouse and any child of the individual.
* Under Sec.80CCC of the Income Tax Act
Premiums paid upto maximum of Rs. 1,00,000/- to effect or keep in force a contract of annuity plan for receiving pension.

However, u/s.80 CCE, the aggregate amount of deduction under section 80C, section 80CCC, and section 80CCD shall not, in any case exceed Rs. 1 lakh

* Under Sec.80 D of the Income Tax Act
Premiums paid (other than through cash) towards Critical Illness Rider, subject to a total maximum of Rs.15,000/- (an additional Rs 5,000 for senior citizens) to effect or keep in force an insurance on the health of the individual, spouse and dependent parents or children.
* Maturity Benefits are exempted Under Sec.10(10D) of the Income Tax Act.
Maturity benefits are tax free. However in cases where premium exceeds 20% of Sum assured in any year, benefits paid in excess of premiums paid will be taxable.

As a tool of financial planning

Most insurance plans available today have a built in savings element. Plans like the Kotak Endowment Plan, Kotak Money back Plan, Kotak Child Advantage Plan, Kotak Preferred Retirement Plans, etc allow you to meet your dual financial goals of life cover and Savings for the future. Collateral security for loans

You may avail of a loan from the insurance company against certain plans. Your policy could also be pledged as a collateral to raise funds from banks and other financial institutions. In case of your unfortunate death the loans may be repaid from the proceeds of the life insurance policy. Savings

Insurance promotes compulsory savings with regular premium payments and helps build up a corpus of funds along with financial security for the dependants in case of premature death. For your medical needs and that of your family

Hospitalization costs and quality healthcare is becoming increasingly expensive. Without insurance, you can actually face a situation where you have withdrawn all your money and borrowed to pay the medical bills. This can be provided with our Critical Illness Benefit. Insurance provides you the option of covering yourself towards any critical illnesses that can become extremely costly. Choosing this facility pays you a lump sum upon diagnosis of certain diseases like cancer, kidney failure, heart attack, stroke, coronary bypass, vital organ transplants, Alzheimer’s disease, paralysis, etc.

The term insurance simply means having a cover or an assurance for one self. It is always better to have a cover for yourself and hence be on a safer side. This is the reason that the insurances are considered to be very good for all such purposes of assurance. The property insurance is one such insurance claim. There are various types of insurance claims that one can get from the various insurance lending organizations in the market today. Besides the common insurance claims like the life insurance claims one of the major insurance claims one must go for these days is the property insurance claim. The property insurance claim as the words together suggest is a type of insurance claim under which one is given a good cover for their property for which they have applied the insurance for.

Properties are a very common asset that the people are going after these days. There are many people who have their own properties and this is the reason why it has become necessary to keep them safe and secure from any future consequences which might harm the property. The property insurance claims are made for such people who want to have that perfect cover for their property. It is always said to be good to keep one’s property in a good position and property insurance claims will help one achieve this goal. There is not much work required for having such claim as one just needs to apply for the property insurance claim and tell the organization about the property they want to insure and finally there are certain premium amounts which are to be paid by the person in installment basis so that in case anything happens to the property then there is a good back up for covering things up with the help of the property insurance claim. It is not only the life and the health of a person that are needed to be insured these days. One must opt for a good property insurance claim for their property from a trustworthy and a good renowned organization so as to be fully satisfied and tension free when it comes to their property.

.Reference resource: Click Here.