want to invest in insurance sector for tax purpose, age 51 pl reply

Ans: For tax-saving purposes, investing in insurance schemes might not be the most efficient option, especially considering your age. Insurance schemes typically offer lower returns compared to other investment avenues and may come with various terms and conditions.

Instead, consider investing in Equity Linked Savings Schemes (ELSS). ELSS mutual funds offer the dual benefit of tax-saving under Section 80C of the Income Tax Act and the potential for higher returns by investing primarily in equities. They have a lock-in period of three years, which is relatively shorter compared to traditional insurance policies.

ELSS funds have historically delivered attractive returns over the long term, making them a preferred choice for tax-saving investments, especially for individuals who are comfortable with market-related risks.

Before making any investment decisions, it's essential to assess your risk tolerance, investment goals, and overall financial situation. Consulting with a Certified Financial Planner can provide personalized guidance and help you select the most suitable investment options aligned with your needs and objectives.