BUISENESS MANAGEMENT
BUSINESS PLANNING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It guarantees that income and assets are protected
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It helps build and maintain one’s credit score
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It helps cover day-to-day expenses
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It grows in value and appreciates over time
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Detailed explanation-1: -Insurance can add predictability and security to your financial plan. Another benefit of insurance is that it can add some predictability to your legacy and estate plan. Investments, real estate, business interests and other investment assets can vary in value over time. A life insurance policy provides predictability.
Detailed explanation-2: -By investing in a life insurance plan, you can claim deductions from your taxable income as per the provisions of the Income Tax Act, 1961. This means that the insurance premiums you pay, help in reducing your tax liabilities. In case of some life insurance products, maturity proceeds also come under exempted incomes.
Detailed explanation-3: -Financial Planning Defined It is the long-term method of wisely managing your finances so you can achieve your goals and dreams, while at the same time negotiating the financial barriers that inevitably arise in every stage of life.In order to create a sound financial plan, goals must first be established.
Detailed explanation-4: -The first stage of the financial planning process constitutes assessment on what is happening in your life right now and how you can change your financial situation.