Investing is no longer about saving for rainy days. When we invest, we expect the best possible returns from our investments so that we can fulfil our various goals and aspirations in life. Over the last few years, unit linked insurance plans have emerged as one of the most popular investment plans in India. It is a unique hybrid of a life insurance policy and a market-linked investment plan which offers dual benefits – life insurance combined with savings at market-linked returns. If you are looking for investment options for your hard earned wealth, here’s why it should be your go-to annual investment:
Flexible Premium Payments
Not many are aware of the fact that ULIPs offer convenient premium payment options such as yearly, half-yearly & monthly investments. To make things easier, you can send a one-time instruction to your bank to allow an auto debit of a specified amount at fixed intervals. That way, you never have to worry about missing premium payments.
Amazing Tax Benefits
By investing in these plans, you can avail ULIP tax benefits under section 80C & 10(10D) of the Income Tax Act. Moreover, it falls under the EEE (Exempt Exempt Exempt) tax status and hence they are exempt from tax at all stages of investment. You can secure deductions up to INR 1,50,000 under section 80C per annum. Moreover, you don’t need to pay any tax on the maturity amount under section 10(10D).
Switching Funds to Match Investment Needs
Unit linked insurance plans offer you the flexibility to switch between equity, debt or hybrid/balanced schemes according to your changing needs and risk appetite.
By making regular payments towards your unit linked insurance plan, the market’s ups and downs get averaged out. This, in turn, lowers risks and offers relatively stable returns.
Long Term Investment Benefits
Since ULIP investments require you to invest smaller amounts over a long period of time, you will be able to save despite any financial ups and downs in your life. As a result, you can use the money for planning your long term goals such as retirement or your child’s education.
Benefits of Debt and Equity in a Single Plan
Most investment options require you to choose between either debt, equity or balanced funds. However, with ULIPs you get to choose how much of your investment goes into debt funds, equity funds and balanced funds.
Clearly, unit linked insurance plans offer plenty of unique benefits, which make it one of the most promising investment options available in the market today. By choosing the best investment plans you can enjoy ULIP tax benefits along with free life cover and the liberty to invest in funds of your choice. So invest in ULIP plans like Bajaj Allianz Future Gain and Bajaj Allianz Goal Assure at Finserv MARKETS to start saving for a better tomorrow.
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