Smart Investments – How To Meet Long-Term Wealth Creation Goals

IndiaFirst Life
• 09 Aug, 2024

Achieving long-term wealth creation goals requires strategic planning and smart investments. When considering investments, it is ideal to first create security for your loved ones. An instrument that can help you achieve both these goals is ULIPs, meaning Unit-linked Insurance Plans. Among various financial products, a ULIP plan stands out due to its dual benefits of insurance and investment. Let’s look at how ULIPs can prove to be the right wealth-creation instrument.

ULIP for Dual Benefits

Getting life insurance is a way to ensure the risks you take while you pursue your dreams do not bring any financial stress to your loved ones in your absence. Simultaneously, ULIPs also offer investment benefits so that your future goals can be accomplished.

When buying a ULIP, the policyholder pays premiums as they would for any other life insurance plan. If an unfortunate event were to befall the life assured while the policy is in force, the nominee can claim a death benefit.

However, if they were to survive the policy period, they may get market-linked maturity benefits. Thus, ULIPs allow you to pursue your goals without compromising your family’s future security.

Benefits of a ULIP Plan

Dual Purpose:

Provides life insurance cover and investment growth.
Flexibility:

Allows switching between funds based on market conditions and investment goals.
ULIP Tax Benefit:

Premiums paid are eligible for tax deductions under Section 80C, and maturity proceeds may be tax-exempt under Section 10(10D).**

ULIP as a Wealth Creation Tool

ULIPs are particularly effective for long-term wealth creation due to their structured approach and flexibility.

Here’s how to make the most of your ULIP-based investment:

Goal Setting:

Define your financial goals clearly, such as retirement, children’s education, or buying a house.
Risk Assessment:

Choose a ULIP plan matching your risk tolerance. For instance, young investors with a higher risk appetite may opt for equity-oriented funds, while conservative investors might prefer debt funds.
Periodic Review:

Regularly review and switch funds to align with market trends and personal financial goals.
Maximise ULIP Tax Benefit:

Ensure your premiums are within the eligible limit to fully utilise the tax benefits.**

A ULIP plan offers a robust solution for long-term wealth creation by combining the benefits of investment and insurance. Begin early, stay invested, and keep track of your portfolio to best utilise your ULIP investment.

Disclaimers:

** Tax exemptions are as per applicable tax laws from time to time.

Unit Linked Insurance Products are different from the traditional insurance products and are subject to risk factors. The Premium paid in unit-linked life insurance policies are subject to investment risks associated with capital markets and NAVs of the units may go up or down, based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. IndiaFirst Life Insurance Company Limited is only name of the Insurance and does not in any way indicate the quality of the contract, its future prospects, or returns. Please know the associated risks and the applicable charges from your Insurance Agent or the Intermediary or policy document issued by the Insurance Company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. For more details on risk factors and terms and conditions, please read the sales brochure carefully before concluding the sale.

IndiaFirst Life Insurance Company Limited, IRDAI Regn No.143, CIN: U66010MH2008PLC183679, Address: 12th & 13th floor, North [C] Wing, Tower 4, Nesco IT Park, Nesco Center, Western Express Highway, Goregaon (East), Mumbai – 400 063. Toll free No – 1800 209 8700. Email Id:customer.first@indiafirstlife.com, Website :www.indiafirstlife.com, Fax No. +91226570600. Trade logo displayed above belongs to our promoter M/s Bank of Baroda and is used by IndiaFirst Life Insurance Co. Ltd. under license.

by IndiaFirst Life
Headquartered in Mumbai, IndiaFirst Life Insurance Company Limited (IndiaFirst Life), with a paid-up share capital of INR 754.37 crore, is one of the fastest growing private life insurers in India in terms of New Business IRP in Fiscal 2023. Our key differentiators are our simple, easy-to-understand products that are optimally priced. As of Sept 30, 2023, we offered 30 retail products, 13 group products along with six riders (across retail and group portfolios), along with policies under the PMJJBY scheme, catering to protection, savings, health and retirement needs of our customers, leveraging multiple distribution capabilities and augmenting various investment options. In all propositions under the categories of Participating Plans, Non-Participating Savings Plans, Non-Participating Protection Plans, Unit Linked Insurance Plans, Group Protection Plans, Corporate Funds Plans, Riders & PMJJBY form a complete suite of offerings that help our customers prepare for the certainties of life. Our products are easy to understand and optimally priced with a developed comprehensive risk management framework/policy.