How does a higher cover help one group whereas moderate to low cover sufficient for the other group? Read on to know more about this.
Investment purposesLooking to park your hard-earned money from your own venture in a safe investment instrument? Most instruments that give moderate to high returns are usually associated with higher risks. The lower risk investments often seem dormant as they shell out considerably fewer returns over a period of time.
With certain insurance policies, you will receive average returns with the lowest risk compared to any other instrument in the market. Hence, you can not only earn good returns but also stay away from worries about market forces affecting your investments. It is, therefore, recommended to invest a large portion of your money and get higher coverage.
Tax benefitsUse insurance as an asset instead of looking at it just as an insurance policy or a security. Insurance policies give you tax exemptions that help you build an impressive corpus over a period of time. There are higher tax brackets and lesser options to save taxable money for self-employed people.
Hence, insurance is like a breath of fresh air for every entrepreneur’s balance sheet. Get a higher cover and invest as much as you can in getting the highest possible tax exemption allowed.
Keyman insurance policyKeyman insurance policy is a life insurance plan that is in the name of the owner or the founder of the company. However, the premiums are always paid from the company’s account. In the event of the untimely death of the owner or the founding member, the payout goes to the company.
This is by far the best insurance that every entrepreneur should have, especially, when the founder is personally liable to pay the debt of the company. Hence, while securing the company, every entrepreneur must buy a cover that is more than what is needed.
If you are an entrepreneur, you already have a lot going on in your professional and personal life. Apt insurance will cover you against eventualities adding some stability to your life.
Learn more about different Online Term Insurance Plans here.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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