Right Investments: Unemotionally create a Financial Plan

An instrument that provides both insurance coverage and savings component in the same package is what ULIPs are. It’s a type of life insurance with special features and advantages of its own. What makes ulip plans popular is the fact that it offers the two most sought after products in the financial market. Traditional insurances don’t have the option of savings wherein you receive no money after the tenure expires. Unit linked insurance plan covers you while at the same time accumulates wealth.

Unit linked insurance plans are also seen as great retirement plan tools. A part of the premium you pay is used to provide for the insurance part while the rest of it is invested in the capital market. The investments can be made into both equity and debt fund. The investment choices differ from one company to another. These companies present a range of investment vehicles and you have the freedom to choose yours. People opt for investing in debt funds to ensure steady returns, whereas those with an appetite for risk may invest their money into equity funds (which allows you enough room for growing your wealth).

Ulip plans especially are beneficial if you have certain long-term goals set like higher education of your children, vacation plans, retirement saving, and more. Unit linked insurance plan essentially helps you create wealth no matter the purpose you want it. You can also pre-maturely withdraw a part of your investment in the case of emergency requirement of money. You may not be levied a charge for such partial withdrawals. You can choose the amount of life cover and there’s a good deal of flexibility unlike other insurance that may have certain fixed value. The premiums are cheaper compared to other life insurance types. The tenure of ulip ranges between 5 years and life time. This serves another great purpose for your convenience.

Unit linked insurance plans offer tax benefit under Section 80C, Section 80 CCC, Section 10 (10A) and Section 80D of the Indian Income Tax Act. You receive tax benefits not only on the premiums you pay but the wealth created through investment is not taxable. Even the maturity benefit is tax free.

With stiff competition among several top financial companies, look out for the one that comes as close to fulfilling your immediate requirements. The internet offers you wide scope to learn more about every product available which should help you in making a choice that will truly serve your purpose. Websites offer comparison between offerings of different companies and thus save your time.