You must have sought ways to invest in various asset classes from time to time. You’ll get an opportunity by opting for a Unit Linked Insurance Plan. It will even cover you for certain unfortunate circumstances with a life insurance policy. A portion of the amount that you pay towards your premium may be invested in your hand-picked plans. It enhances your chance to achieve a higher return on investment.
If you’re truly eager to achieve your long-term financial goals, your investment portfolio must comprise of ULIPs. Apart from ensuring a cost-effective way of earning more on your investments, a ULIP plan even allows your savings to grow and accumulate more wealth over time.
Compared to other traditional insurance policies, ULIPs yield a unique opportunity for you to enjoy the freedom of customizing your policy while comparing a plethora of options that match your investment needs. Like any other insurance policy or wealth plan, the features of a ULIP plan get you overwhelmed.
Check Out a Few Points on Why ULIPs Are a Good Investment Option:
Multiple Goals:
ULIPs enable you to invest a portion of your premium towards debt, balanced, and equity funds, while the remaining portion goes out towards life cover. Thus, a single product allows you to enjoy the benefits of investment and insurance at once.
Higher Returns:
By opting for ULIPs, you’re actually investing your money across numerous reliable investment options like equity and bonds. ULIPs are a great opportunity for you to obtain quality returns linked to the share market. You won’t enjoy such returns with any traditional insurance policy.
More Flexibility:
The fact that a ULIP enables you to shift from one investment fund to another is a proof of its flexibility. Facts concerning your market performance and risk appetite will help you to pick any of the balanced, equity, and debt funds.
Economic:
ULIPs are certainly amongst the most inexpensive market policies that yield both investment and insurance benefits. The fact that the latest ULIPs don’t demand any policy or allocation costs often makes them more inexpensive than that of the mutual funds. ULIPs are also quite popular due to their tax benefits.
Tax Benefits:
ULIPs can act as an efficient tax-saving tool. The amount that you pay towards your ULIP policy premiums is entirely tax-exempted under certain circumstances. Being a policyholder, you’ll get more chances of extending your savings at a time when there’s no need to pay tax on the amount of premium.
In addition, the portion of your income that’s taxable comprises of deductibles like that of the maturity and death benefit. There’s no reason for you to be concerned about paying a hefty sum as tax out of your savings.
Long-term investment plans like ULIPs are meant for individuals that opt for financial planning for the long run. There’s a 5-year lock-in period that comes with every ULIP. It helps you set your long-term goals in a proper way. The growth that you achieve with ULIPs can help you meet your long-term financial objectives like that of buying a property or fulfilling your daughter’s wedding plans. These days, you may even pick one out of a diverse range of ULIPs.
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