Every individual should be well-versed with financial planning. With an appropriate financial plan, you can provide financial aid to your family members and build a secure financial future.
Many investment instruments are available in the market to help you achieve the same. However, choosing the right ones that will help you achieve your financial goal can be overwhelming. But if you know your objectives and the ultimate financial goal, it thus becomes easier to choose an instrument that will benefit you.
One such financial instrument, which not only provides the option for investment plans but also provides insurance coverage alongside, is the ULIP plan.
ULIP investment or the Unit Linked Insurance Plan is an investment instrument that provides you with dual benefits – benefits of both insurance protection as well as investment. In ULIPs, you (the policyholder) is liable to pay premium amounts on a monthly or yearly basis.
A portion of your premium amount is utilised towards life insurance; whereas the remaining amount is invested in funds of your choice. The policy tenure usually ranges between 5 years, 10 years, and 15 years.
With the ULIP plans, you have a choice to invest it in either equity or debt. In case you are ready to take risks with your investments, you can choose to invest in equity-oriented funds; whereas if you are more likely to play it safe, then you can choose to invest in debt funds.
Also, if you want to earn decent returns on your ULIP plans, it is highly advisable to invest in long-term ULIPs with equity-oriented fund option.
The ULIP plans provide multiple benefits over a regular savings plan. One of the highlighting advantages of ULIP investments is that it provides you with the flexibility of choosing the type of funds you want to invest, something that most traditional savings plans lack. Moreover, the ULIP returns generated are inflation-adjusted, further making ULIP plans a reliable investment instrument for you.
Apart from these, there are several other reasons why you should invest in ULIP plans. Here’s a list of seven ULIP benefits –
Like we discussed before, ULIP plans provide you with the benefits of both a sound investment plan as well as insurance coverage all under a single policy.
A portion of the premium amount that you pay towards your ULIP plan is contributed towards life insurance coverage, whereas the remaining part is invested in funds of your choice. Hence, you are not only guaranteed protection but also can build your wealth alongside.
The investment part of the ULIP plans allows you to choose funds based on your risk appetite. Thus,
If your risk appetite is low or you do not want to take the risk, then you can choose to invest in debt funds
If you are ready to take a little risk, then you can choose to invest in balanced funds
If your risk appetite is quite high, then you can choose to invest in equity-oriented funds
With ULIP plans, you have the flexibility to switch between top performing ULIP funds – from equity to debt and vice versa. Depending on the current market movements, your investment and financial goals tend to change. Hence, you get the liberty to switch between funds to earn high returns. With this option, you can change the ratio of the invested amount, and the said changes will not cost you any additional expense.
You have the facility to add the top-up premium amount to your underlying ULIP plan voluntarily. This amount will be over and above your set premium rate. Choosing this option makes quite a sense when your ULIP plan is performing well in the market, and you have a surplus amount to invest in it.
Moreover, this option is cost-efficient and reliable as you do not have to purchase another ULIP plan to start another investment plan. It is however noteworthy that since this option is voluntary, you do not have to commit to the additional amount every premium payment period.
If you are planning to build your wealth over time, then investing in long-term ULIP plans is an ideal investment option. The reason behind this is that the ULIP returns are associated with the stock market. Thus, investing in the long-term plans will give you enough time to digest the market fluctuations and will earn your reasonable returns.
Another ULIP plan benefit is that it allows you to add a rider. A rider is nothing but add-on protection that gives you extra coverage on your underlying insurance plan. It thus makes ULIP plans a comprehensive financial protection option for every individual.
You can avail ULIP tax benefits on premium paid towards the life insurance part of your ULIP plan. Under Section 80C, you can be eligible up to 1.5 lakhs of tax benefits on the premium paid. Also, all the maturity payouts received are tax exempted under Section 10D of the Income Tax Act of 1961. Therefore, ULIP plans not only to help you save money but also allows your money to grow.
From the benefits above, it is quite clear that ULIP plans are an ideal investment option available in the market. So, if you have any long-term financial goals, then make sure that you browse through different ULIP plans and choose one that is best suitable for your needs.
In that case, get in touch with us at Finserv MARKETS. With Bajaj Allianz ULIP plans available on Finserv MARKETS, you get great flexibility and high returns. Allow your money to grow under the dual benefits of market investments and life coverage all under a single policy.
So, take a look at the exclusive Bajaj Allianz ULIP plans at Finserv MARKETS and achieve your financial goals as soon as possible.
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