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ULIP plans for investment & insurance

Author: Arnab Goswami
by Arnab Goswami
Posted: Nov 27, 2017
ulip plans

ULIP plans for investment & insurance

Unit linked investment plans are a powerful financial tool, to help you achieve your financial goals in short or long term. A single plan can give you dual benefits of investment & insurance. You pay single premium quarterly/ half-yearly/ annually and secure your & your family’s future together with a lump sum amount. ULIPs have always been a preferable avenue of investment, but during the year 2008 owing to market downfall, the policy holders suffered financial loss. But, with the improved ULIP plans in the evolving insurance market, it is again gaining its popularity. The premiums you pay for the policy is divided into two categories, one goes for the life cover and another gets deposited into equity/debt fund.

If you are not investing in ULIP, then you have to take a term cover and buy bonds & shares separately for insurance & investment.

This single plan dual benefit makes ULIP plans most cost-effective financial tool. It comes with a bunch of benefits; few of them are as follows:

  • When a policy holder invests in ULIP plan, they can enjoy the flexibility of choosing their fund avenue (equity/debt) for investment as per their risk appetite.
  • The Best Ulip Plan provide flexibility of switching the funds, in case the policy holder wishes to change his equity fund to debt or vice versa.
  • Flexibility to change the premium payment term and frequency, as per your convenience.
  • You can choose your rider as per your requirement.
  • They can increase the premium cost with top-up premium, as per the affordability of the policy holder.
  • Offers transparency & encourage goal based savings.
  • One can avail tax benefit, under section 80C & 10(10D) on the premiums & matured/death benefit.

The aforesaid benefits make ULIPs to be one of the popular life insurance plans.

You have a minimum lock-in period of five years, which can extend up to 10-15years. if a young person plans to buy a life insurance plan, then he should definitely choose ULIP. It not only helps him to safeguard his family’s future, but also helps in building a financial corpus to achieve financial goals of life in near future, like: education & marriage of their children, owning a house or many other personal needs.

With the advent of internet, buying policies online is the easiest & safest option. So if you are planning to invest in some Ulip Insurance Plans, then you must opt for online medium. Before purchasing the keep few things in mind:

  • First & most important thing to keep in mind is your financial goal in near future, when you would require lump sum amount of money to achieve it. It can be short or long term.
  • Invest in the policy, whose premium gets easily absorbed by your income source.
  • Choose the fund for investment as per your risk appetite.
  • Try to buy ULIP plans at your young age, to make use of the policy to gain profit.
  • Read & understand the policy and its terms & conditions, before signing on the dotted lines.
  • Choose the insurance firm, which has claim settlement ratio & solvency ratio

Hope this article was helpful, for understanding the advantage of an ULIP plan.

About the Author

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

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Author: Arnab Goswami

Arnab Goswami

Member since: Sep 21, 2017
Published articles: 73

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