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

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