5 Advantages Of Investing In ULIP PLANS

ULIP plan are investment instruments that combine benefits of both life insurance and investments in money markets. ULIP Plans as an investment category has a lot of inherent benefits. Here, we identify 5 advantages of investing in ULIP Plans over other investment options.

Choose your investment mix
On the basis of your risk appetite, you have the option to choose the mix of market entities that you invest in. You can opt to invest in debt funds if you are a low risk-taker, balanced funds if you are moderate risk-taker, and equity funds if you are a high-risk taker. You also have the option of investing in balanced funds which can range between debt funds and equity funds.

Flexibility
This flexibility is not available in other investment plans. It provides you with a flexibility of choosing and switching between debt and equity funds. During an uncertainty you can invest in debt funds and when the market performs well you can opt for equity funds. Staying invested for a longer duration

Long term investment
For achieving long-term goals like buying a house, buying a new car, opening a start-up, etc, ULIPs prove to be a good option. With the power of compounding, ULIP Provide a better return over a longer time horizon. In case you decide to exit the policy after 5 years what you receive in ULIPs will be far greater than what you would get if you would have only saved that amount without investing.

Tax Benefits
Not all investment options provide tax benefits. Since ULIP is a life insurance product it provides tax benefits. For premiums paid, you get tax rebates under section 80C and all payouts received are exempt under section 10D of the Income Tax Act, 1961. So you not only save money, but also are able to see it grow.

Life cover
As mentioned above, ULIP Plans as a product is offered by Life insurance companies. ULIP Plans fulfil your need for both investment and protection. Though the life cover provided by a ULIP may not be as high as that of a term plan, however, it does provide life cover.
Overall ULIP Plans can be an ideal investment option for your long-term financial goals. It is recommended that you check the performance of individual funds while investing in ULIPs.


Source: edelweisstokio.in/blog/5-advantages-of-investing-in-ulips

Comments

Post a Comment

Popular posts from this blog

What is Endowment Plan?

Endowment Plan Meaning Endowment plan is a type of life insurance coverage which is applicable only for specified period. Like any other Life Insurance, here also you will get assured sum after maturity and in case of death of the policy holder the nominee will be benefited by the amount. In this plan the specified period will be ten, fifteen, twenty years or up to certain age limit for which you have agreed. Endowment Plan= Insurance + Savings Types Types of Endowment policies popular in the market are as follows Unit-linked endowment This is a fixed term saving plan with an opportunity of life coverage. In this plan your savings can be invested in market shares thus the return you get from this completely depends upon on the performance of your investment.   Full endowments In Full Endowment plan at the start of policy you will be assured with basic sum which is also equal to death benefit. However the amount you get at the end of maturity depends on the annual
Read more

What is Children Education Plan

Quality education is the desire of most parents for their children. However, quality does not come cheap, income is not stable and life itself is uncertain. Children Education Plan has been structured towards ensuring quality education for your children and wards easily and in a most efficient manner. This policy allows you to conveniently save towards sending your children/wards to any school of your choice whether within the country or abroad. The Child Education Plan guarantees the future education of your children/wards at whatever level. It ensures that they have access to the quality of education you desire for them, whether you are there to do it or not. Just like in the ISP, a plan holder starts making a compulsory and regular savings for a number of years. The choice is however yours to decide on the duration of the policy, but this shall not be less than five years. The premium payable shall depend on the ability of every individual to contribute, although, the highe
Read more