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Why You Should Invest in ULIPs

By Finserv MARKETS - Jul 25,2019
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Benefits Of Investing In ULIPs.

It does not matter whether you are a 20-something individual planning your future, or a person nearing his/her retirement looking forward to a pensioner’s life. The best time to invest in a ULIP is now! Unit Linked Insurance Plans are unique hybrid financial tools that are specifically designed to take care of your investments as well as insurance needs.

If you are still unsure about investing in ULIP schemes, below listed are 5 reasons why it’s the best way to secure your future.

Reasons to Invest In ULIPs:

  • Insurance Coverage

The best way to secure your future is to get yourself insured. As compared to traditional insurance policies, ULIPs offer the benefits of insurance coverage as well as returns on your investment. A part of the premium amount gets invested into funds, whereas the remaining part goes into your life insurance cover.

  • ULIPs for wealth creation

ULIPs are perhaps one of the best options for wealth creation for securing your future. They provide flexibility to invest in different types of funds such as debt, equity, or balanced funds. If invested wisely, an investor has an opportunity to increase his/her wealth over the years with each of these funds. For instance, suppose you want to reach a financial goal within a short period, you can maximize your investment in the equity fund. Later, if you feel that you are nearing your target, you can switch your funds to debt or balance funds for a safer investment.

  • Customization options

The schemes can be customized as per your future financial goals. For instance, if your goal is to solely create wealth, there are some ULIP plans specially designed for that purpose. These investment plans generally target a customer base of individuals between the age group of 20-40 years. However, the risk appetite for these plans is considerably high. On the other hand, if your long-term goal is to enjoy financial security after retirement, there are several retirement plans available in the market that offer pension benefits.

  • Tax Benefits

Any investment that offers tax benefits is a good investment. The premium amount, as well as the ULIP returns, are deductible under Section 80c and Section 10 D respectively, of the Income Tax Act. Some plans also offer death benefits under its scheme, which are completely tax-free. This ensures financial security for the policyholder’s family even after his/her demise.

  • Partial Withdrawal Facility

ULIPs have a lock-in period of 5 years. This is enough time for your investments to grow comfortably. However, unlike other popular investment schemes, unit linked insurance plans allow you to make partial withdrawals during the lock-in period. This facility comes handy, especially in cases of emergency or urgent financial needs. You can also partially withdraw your own investments, instead of applying for loans and paying their EMI.

In conclusion

Compared to other investment and insurance options available in the market, a ULIP scheme is the most obvious choice when you are working towards goal-based savings. Apart from offering flexibility in investment, it is a good way to secure your as well as your family’s future. Also, being a one-stop destination for investment as well as insurance prove extremely economical, when compared to making individual premium payments for separate insurance and investment schemes.

If you want to know more about different Bajaj Allianz ULIP plans in detail, visit Finserv MARKETS today! Apart from the usual ULIP tax benefits, you can also enjoy investment flexibility, easy liquidity, and high maturity benefits on our various investment plans. Visit now to browse among the top-rated funds across the industry at zero collateral charges.

To know more on ULIP investments in depth, you can check out these blogs:

Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522