Page 40 - M1_Insurance Introduction Notes
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relief to entrepreneurs from the uncertainty of
foreign trade.
f) Liquidity: Loans can be raised on the sole security
of a policy which has acquired loan value.
Besides, a life insurance policy is also generally
accepted as security for even a commercial loan.
g) Tax Relief: Tax relief in Income Tax and Wealth
Tax is available for amounts paid by way of
premium for life insurance subject to Income Tax
rates in force. Assesses can avail themselves of
provisions in the law for tax relief. In such cases
the assured in effect pays a lower premium for
his/her insurance than he/she would have to pay
otherwise.
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