If you are on the lookout for investment options, unit linked insurance plans should definitely be on your list. Unit Linked Insurance Plans, have been in the limelight for a long time. It is a unique investment instrument that offers the dual benefits of a life insurance policy and a market-linked investment plan. Here are 7 reasons to invest in such a plan: –
1. Dual Benefits
By paying a single premium, you can enjoy the dual benefits of a life cover along with market-linked returns. This unique hybrid helps you plan your long-term finances with ease.
2. Triple E-E-E Benefit
ULIPs fall under the EEE i.e. Exempt-Exempt-Exempt taxation category. Under the EEE tax benefit, a policyholder can claim tax deductions during three stages i.e. investment, returns, and withdrawal. Right from premium to returns, every aspect is tax-free. This makes it one of the most popular tax saving investment available in the market today.
3. Top-Up Advantage
ULIP investment offers you the flexibility to increase your investment corpus with the top-up facility. If you feel that your existing funds are performing well, you can invest more and earn greater returns using the top-up facility.
4. Option to Switch
A ULIP policy offers you the freedom to switch the ratio of exposure in equity, hybrid, or debt funds as per your risk appetite and performance of funds. Whether its change in your life goals or the market performance, you can switch your funds from debt to equity or a mix of both as per your needs. Majority of the providers offer a certain number of free switches each year. However, the Bajaj Allianz ULIP plans available on Finserv MARKETS allow you unlimited switches in a year, without levying any charges.
5. Structured Charges
With ULIP investments, the different charges such as policy administration charge, premium allocation charges and fund management charges reduces over time. Hence, as a policyholder you will have to pay less and earn high returns in the long run.
6. Lock-in Duration
Unit linked insurance plans have a minimum lock-in period of five years, following which you can opt for discontinuation of the policy. However, the extensive lock-in period ensures maximum return on investment.
7. Potentially Higher Returns
ULIP Returns are relatively higher compared to other insurance products such as endowment plans. The returns from market linked investments along with tax savings can increase your returns considerably. Moreover, the life cover offered increases the value of the investment manifold.
Clearly, unit linked insurance plans offer unmatched benefits which make it an ideal investment plan for the long term. At Finserv MARKETS, we offer unit linked insurance plans such as Bajaj Allianz Future Gain and Bajaj Allianz Life Goal Assure that are highly flexible and let you manage your investments according to your constantly evolving financial needs. To know more or invest in these ULIP plans, visit Finserv MARKETS today!
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