Savings Insurance (PIAS/Unit Linked): Who Qualifies and What You Get
Learn how these savings insurance schemes provide tax advantages on investment returns if you follow specific long-term rules.
This scheme refers to specific types of insurance-based savings vehicles designed to help individuals build wealth over time while providing certain tax benefits.
Who it's for
This is intended for retail investors who are looking for ways to grow their savings over the long term while benefiting from tax exemptions.
What you get
If you hold your investment for more than five years and choose to receive your money as a life annuity (a steady stream of payments for the rest of your life), the returns on your investment may be exempt from certain taxes.
What it costs you
To participate, you must pay regular insurance premiums. You will also be responsible for various management fees associated with the investment.
The catch to know
The tax advantages are tied to long-term commitment. If you decide to withdraw your money early, you will likely lose the tax benefits you were aiming for.
How to apply
- Research different insurance providers to compare their specific management fees.
- Determine how much you can afford to contribute to your premiums regularly.
- Choose between a PIAS or Unit Linked structure based on your investment goals.
- Contact a financial provider to set up your account and start your contributions.