A lot has changed since the recent announcement of demonetisation two months ago. These changes have impacted Indians everywhere.

Take for example the case of Chetna, a 35-year old homemaker, who manages to save some cash from her daily expenses and money received on festivals to surprise her family members with thoughtful gifts on special occasions.

Rohan and Chetna’s anniversary was coming up and she had been planning a surprise weekend getaway for the family. However, due to the announcement, she had to now disclose her plans to Rohan.

Rohan was pleasantly surprised! He was really impressed how much Chetna had managed to save from the everyday expenses. But looking at how disturbed Chetna was about her surprise being ruined, Rohan calmed her. He told her that now, instead of saving money at home in a cupboard/locker, she should deposit the money in a bank and invest this money in an instrument which gives safety and potential for growth for her money. This could help her plan bigger and better surprises for the family! However she had some queries about investing. Rahul patiently answered them all:

Chetna: I want to invest in something safe. What would you suggest?

Rohan: Chetna we can consider Life Insurance plans(Unit Linked or Endowment). However even though such investments are subject to market risk, you will get a LIFE COVER depending on the policy chosen by you, thereby offering protection to your loved ones. It also gives you the potential to grow the money you invest. Isn’t that great!

Chetna: Yes. But I don’t have a fixed income, can I still invest in these plans?

Rohan: Yes you can invest in these plans as you need not necessarily pay monthly. You can pay premiums yearly, monthly or half-yearly. You can also change the payment mode later on if you request the insurer.. There are so many options to choose from. There is even an option where you can pay just once and get benefits over many years.

Chetna: Wow that’s great! Also, I heard that life insurance policy can help save tax. Is this true?

Rohan: Absolutely! You get tax benefit* on the premium paid under section 80C. And the best part is, money received at the end of policy term is tax free subject to conditions prescribed under section 10(10D) of Income Tax Act, 1961.

Chetna was happy that her surprises wouldn’t stop now that she would start saving differently. Now both, Chetna and Rohan have life insurance policies that will fulfill their future plans and needs.


* Tax benefits are subject provisions of the Income Tax Act, 1961. Tax laws are subject to amendments from time to time. Please consult your tax advisor for details, before acting on above.

Unit linked insurance products are subject to market risk, which affect the Net Asset Values & the customer shall be responsible for his/her decision. The names of the Company, Product names or fund options do not indicate their quality or future guidance on returns. Funds do not offer guaranteed or assured returns.L/II/1380/2016-17

About The Author

ICICI Prudential Life Insurance Company Limited is one of the leading life insurance companies in India. We provide insurance plans & policies that include a range of products like term insurance, ULIPs, tax saving plans and pension & retirement plans.

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