Wouldn’t it be great if you could buy an insurance policy that also multiplies your wealth? That’s a Unit Linked Insurance Plan (ULIP) for you.

A ULIP gives you the advantage of investing in an insurance policy and a mutual fund without having to make two separate investments. They are investment products that offer good returns in the long term.

So when should you invest in a ULIP? NOW! The earlier you sign up for a unit linked plan, the more you stand to gain from it.

Here’s a list of reasons that should convince you to invest in ULIPs early.

1. Wealth Creation

Since investment in a ULIP requires a long term horizon, it is an ideal tool to create and grow your wealth. They are market linked products, which combine an investment of premiums in both equity and debt funds to give you higher returns over 10-12 years of time. So, you can start investing in ULIPs as early as your 20s to reap the maximum benefit in a long run.

2. Life Cover

Along with the returns, ULIPs also give life cover. So, you continue to meet your financial goals while securing your life from early years. You can rest assured that your family has adequate money to live their life comfortably if you are not around. This way, you get the maturity benefit as well death benefit.

3. Tax Savings

The premium on ULIP investments is exempted up to Rs. 1,50,000 under Section 80C. The maturity and death proceeds from ULIPs are also tax free under Section 10 (10D). Even the capital gains from fund switches are tax-free in ULIPs. The money you save from tax exemptions can be further reinvested in other financial instruments.

4. Fund Switches

Your financial goals may change over a period of time. Your risk appetite may also go lower or higher, depending on your current financial situation. The market fluctuates on a daily basis and may even go volatile at times. In times likes these, you often wish if you could have control over the asset class (equity, debt or balanced) you have invested in. The fund switch facility in ULIPs is a facility that could help you monitor your funds closely. This facility sets ULIPs apart from other market – linked investments, especially mutual funds. You can shift your funds from equity to debt or debt to equity, as per your market, without unsettling your long term financial goal. The number of fund switches you can do in ULIPs are unlimited.

5. Secure Your Child’s Future

ULIPs can secure your child’s future, like no other wealth plan. Some insurance providers offer ULIPs that provide money at important stages of your child’s career. Even if life deals you a fatal blow, a ULIP plan will protect your child financially to make sure that they complete their education and are capable of standing on their own two feet. For example, with a well-designed ULIP, like the ICICI Pru Smart Life Plan, you can make sure that your child gets a good education even if you’re no longer around. This policy pays premiums on your behalf, provides a lump sum amount at maturity, and also pays your child with an assured amount if something unfortunate happens to you.

Now that you know how amazing a ULIP is, you should invest in one without wasting any more time. It’s the best way to keep yours and your family’s future financially secure.

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