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The Young Professional’s Guide to Investing Wisely

By Finserv MARKETS - Aug 27,2019
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ULIP Investment Guide For Young Investors

As India’s millennial workforce grows, insurers are coming up with innovative investment plans to appeal to the new generation of young professionals. With a higher disposable income than generations before them, young professionals today are looking for ways to invest smarter. Unit Linked Insurance Plans have emerged as a preferred choice of investment, owing to their flexible nature and higher tax benefits. They can be utilized for a variety of investment plans, owing to their unique ability to not just help save your money but also grow your wealth.

With a UL plan, you can choose to invest in equity funds which are more volatile but provide higher returns; debt funds which are a safe choice overall; or a basket of both. The best part? ULIP plans offer tax exemption straight from the time of investment till the time of maturity and for the entire duration your fund grows. This means that even if you are dissatisfied with the nature of the funds you have currently invested in and wish to change, you can do so without having to pay charges for the switch.

ULIP plans have emerged as an investment plan of choice with young professionals for a variety of reasons. They are more dynamic than fixed deposits, but at the same time, they are safer than mutual fund schemes. Tax benefits with mutual funds are restricted to Equity Linked Saving Schemes (ELSS) while unit linked insurance plans allow one to enjoy multiple tax-free benefits. Owing to misinformation, young professionals may often end up investing in a mutual fund which places more reliance on an equity fund than debt funds. Switching funds is an option not available with mutual funds, but a ULIP plan allows one to switch easily between market instruments at any point of time. The flexibility that comes with the latter allows an investing young professional to continue with their wealth creation activities, irrespective of market performance.

The Bajaj Allianz Life Goal Assure, available on Finserv MARKETS, offers increased flexibility in switching funds according to your needs. Additionally, you can save upto Rs. 1.50 Lakh as ULIP tax benefits on premium paid under Section 80C while returns received on maturity are exempted under Section 10(10D) of the Income Tax Act, 1961.

The most appealing aspect of a unit link insurance plans is the guaranteed life cover it provides. Read on to learn more about you can utilize ULIP plans for enhanced wealth creation, according to your needs and risk appetite.

  1. Investing in your child’s future is becoming more of a necessity each day as costs of university education continue to spiral. A unit linked insurance plan doubles up as an insurance policy together with an investment plan. While you can start your investment into your child’s education fund with small amounts, these regularly deposited, will translate into a handsome sum when the need arises. With a ULIP plan such as the Bajaj Allianz Life Goal Assure, available on Finserv MARKETS, your child’s needs will be taken care of, even if you aren’t around. You can save your child from the tiresome burden of student loans by investing wisely in a plan and begin creating a corpus today!
  2. As you prepare the bucket list for your post-retirement days, don’t forget to put down the initial payment on your retirement policy. A ULIP pension plan helps you save for your retirement, and also acts as an insurance cover. The amount contributed as premiums is accumulated into a corpus till retirement, at which point one-third of the fund is returned to you. The remainder of this fund is invested in an annuity scheme, returns from which are paid out as pensions to you on a monthly, quarterly, half-yearly or annual basis. A pension plan gives assured high returns by investing in equity markets.
  3. Allowing your money to sit idle in your bank account is a sure-shot way of losing out on a tremendous opportunity for wealth creation. By investing in a ULIP plan, you are guaranteed the dual benefits of insurance cover as well as generating returns from market investments. Along with being tax exempt under Section 80C and Section 10(10D) of the Income Tax Act, 1961, unit linked insurance plans are also exempted under the newly introduced Long Term Capital Gains (LTCG) tax. Available on Finserv MARKETS, the Bajaj Allianz Life Goal Assure is the perfect long-term investment plan which allows you to not only save but also generate more money to spend on your dreams and aspirations!

Start building for your future with investing wisely today. Small premium amounts over a regular period of time will pay you back multifold in your time of need. Bajaj Allianz Life Goal Assure, available on Finserv MARKETS, will ensure that not only is your money in safe hands but is also being invested wisely to create the necessary funds and fulfill your dreams!

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

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