BUISENESS MANAGEMENT
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What role does insurance play in financial planning?
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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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Explanation:
Detailed explanation-1: -Insurance can play many roles in a person’s financial plan, including investment portfolio diversification, enhanced predictability, tax advantages and risk mitigation.
Detailed explanation-2: -Insurance can help you save tax The premiums that you pay towards an insurance plan can be deducted from your total taxable income, thereby reducing your tax liability. Also, the payouts that you receive from an insurance policy are also eligible for tax deductions under section 10(10D) of the Income Tax Act, 1961.
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