I am 26 and want to buy a life policy with maximum cover at minimum cost with tax benefits. Please suggest one.The best option for you is to go for a pure risk cover. Term insurance is a pure risk cover that takes care of the risk to your life and is designed for those who are interested solely in death benefit and do not want any maturity benefits or returns. The premium in it is quite low as compared to other plans as it gives no return; meaning, if the policyholder survives the tenure, he receives nothing. The premium paid on these policies also qualifies for deduction under Section 80C of the Income Tax Act, 1961. The maximum deduction allowed under this section is Rs 1 lakh. Choose the policy which comes with highest tenure and lowest cost.
