ULIP is also known as the Unit Linked Insurance Plan. ULIP investment is a multi-factorial insurance product that can attract users with its great advantages. It is a combination of investment policies and life insurance.
The chief requirement of the ULIP policy is that the main investor or the policyholder should make regular payments. The specific part of premium payments is used as the life coverage option. The remaining part of the money is used for investments in various financial instruments such as equity and debt. So if you are interested in having a financially secure future, then try to invest in a comprehensive life insurance policy. There are several insurance service providers that provide ULIP policies. For example, the Param Rakshak Plus policy of Tata AIA and several other policies can be considered for having a financially stable future.
Benefits of ULIP Policy
Through the ULIP investment means, one can get the opportunity to invest in market instruments such as balanced funds, equity and debt to receive long-term financial benefits. The money invested in Unit Linked Insurance Plans is subject to market fluctuations, so one should research properly.
You can use the ULIP investment calculator to get an idea about the exact amount payable for the insurance premiums. With a wide variety of options available, you should dig deeper to get the perfect investment option. We have hereby listed some of the benefits of ULIP investment for our readers.
By making investments through ULIP, one can earn market-linked returns easily. In a ULIP plan, a particular portion of the premium is invested into financial instruments such as debt and equity, through which you can earn benefits.
- Accurate protection
A Unit Linked Insurance Plan (ULIP) can protect you and your family from certain specific emergencies in life. One can get market-based returns from this type of investment that can help your family or loved ones in times of need. Through a ULIP investment, you can develop a habit of regular savings and build stable wealth with time.
ULIP plan helps investors in investing flexibly to achieve their financial goals. It can provide investors with benefits such as:
- Investors can switch between different financial instruments according to their needs.
- You can make withdrawals after the completion of the 5-year lock-in period by investing in ULIP plans.
- You can also add single premium additions that can help you in investing additional money along with regular savings options.
- Proper premium paying structure
If you are investing through the ULIP plan, then all the investors should pay through the limited term premium paying structures. A uniform method of paying the premiums is followed for ULIP investments.
- Taxation benefits
All the premiums paid under the ULIP plans are eligible for tax education according to section 80C of the income tax act 1961, which is a maximum of ₹1.5 lakh.
If you are planning to invest in a ULIP plan, then choose wisely as various options are available in the market. You should properly identify your financial goals, calculate the cover amount, pay your premiums accurately and look for accurate taxation benefits to choose the best ULIP fund to invest in. You can also take professional help that can help you in protecting yourself and your loved ones.