Invest now in ULIP plan to retire rich

We all look forward to move ahead, with a set goal in life. For most of us the goal is to retire rich, right? If you have that goal in life, you must start to squirrel away good amount of money from the beginning of your professional life. Now you must be thinking that there are various financial responsibilities in life at various phases, when you have to shed off lump sum amount of saved money. After spending on those financial commitments, you have your provident fund and few saving plans for your empty nest years. If the above mentioned life is your story, then you must look forward to invest money that can give you a handsome amount of money on maturity & would take care of your family, in case you bid adieu to them forever. Ulip is the ideal financial tool for you.

Unit linked insurance policies are an investment plan which provides you dual benefits of investment and insurance. When you invest in these policies, your money is channelized into two avenues; one part goes for fund investment and rest portion is invested in the life insurance cover. You have the freedom to choose your avenue for fund investment, which can either be in the equity or debt fund. Portion of the return is subject to the financial health of the market, so be very vigilant about the market graph and have a thorough understanding of the market condition to choose your avenue of investment.

Earlier people used to invest in ULIPs, but the losses incurred by the policy holders in 2008 owing to downfall of the market, people restricts themselves from investing in ULIP plans. They preferred investing in term insurance policies and shares & bonds for life insurance, tax benefit & investment. Keeping the popularity of ULIPs in the backdrop, the evolving insurance market has re-introduced the plans in improvised form. Earlier people could redeem the policy in very short span, which resulted in low returns. Nowadays if you’re in ULIPs, you have a minimum lock-in period of five years; which helps you to increase the return amount from your selected fund. Now you can choose your fund, and have the liberty to switch the avenue depending on the market condition.

Now you must be thinking, how would you retire rich with the ULIPs, right? There are various occasions in life, when you need lump sum amount, like: for buying a house, funding your child’s higher studies or an abroad trip. On such instances, you are spared from breaking your fixed deposits, or taking loan from your provident funds, if you have a ULIP plan with you. So your savings are intact, and your commitments are fulfilled. If you take ULIPs for longer time, then the returns also increases owing to the developing & evolving nature of the market. With unaffected savings & higher returns from the investment plans, you are bound to retire rich.

When you are investing in a ULIP plan, you are either investing in equity or debt fund. If you invest in equity, then chances of getting higher returns is more compared to the debt fund; depending on market health. The risk is more in case of equity. If you have a proper understanding of the market, you can switch to debt fund in time, saving yourself from the loss & vice versa. Debt gives stability, with low return. It is perfect for the risk averse person, who prefers stability.

Younger & healthier you are, investing in ULIPs is better. After having proper savings plan, invest in a ULIP to enjoy another investment with insurance and enjoy the tax benefit under section 80C & 10(10D)

An personal loan would be the first financial help for your family in your absence.