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The rates of premium go up with the advancing age of the life assured. Hence, one can buy more insurance for the same premium at a younger age than at an older age. The final decision rests upon a careful consideration and balance of all the above factors. The need for minimum protection may be quite high, but the current need for disposable income may not immediately permit buying adequate insurance. XI) Tax Savings- If people have an option of risk coverage with guaranteed return and tax saving they will surely prefer it. Generally policyholders take into account the tax benefit under Section 80C.

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