What are your investment plans for 2022? Have you been thinking that which is a better option, life insurance, ULIPs, mutual funds, etc.? Are you thinking if ULIPs are worthy investment options? If yes, then this blog will help you answer the same. We will be sharing various benefits of ULIP and will help you understand the positives that it brings along.
The list will help you plan in a structured way for your financial goals by helping you properly coincide your goals with various financial options. Make sure that you remember them and consider them before any investments.
Benefits of ULIP:
1. ULIPs are flexible
Under ULIPs, you can choose from high, medium, and low-risk investment options. You can also alter your Sum Assured in a few policies depending on the changing needs of different stages of life. Over and above this, ULIPs also offer you the option of paying a top-up (over and above your premium). This lets you maximize your returns on investments.
2. ULIPs are transparent
One of the most notable features of ULIP is that it is transparent. The plan structure, the charges, and the expected rate of returns are shared with you before you purchase the plan. They also have a free-look period where you can cancel your policy within 15 days if you are unhappy with the same. It also helps you keep track of your Net Asset Value (NAV) through daily company updates.
3. ULIPs tax benefits are beneficial
ULIPs are an efficient way of saving your taxes as they offer tax-saving benefits at every stage of life. You are eligible for ULIP tax benefits under sections 80C and 80D at the entry-level. They help you enjoy a ULIP tax exemption on your earnings. Another notable advantage is that after you exit ULIP, you will receive a maturity benefit which will also be tax-free. You also have the option of considering an exclusive switch. It means that you enjoy ULIP tax exemption on debt-equity switches
4. ULIPs bring you liquidity benefits.
One of the ULIP plan benefits is that it offers you the benefit of partial withdrawal after a lock-in period of 5 years. So, you can withdraw money when you require it, especially during emergencies. You can also withdraw amounts at various intervals as per your needs.
5. ULIPs encourage savings;
You have a lot of goals to achieve in life, and a ULIP plan benefits you by encouraging you to save. Whether you want to buy your own home, prepare for your child’s future education, plan for your retirement, or achieve any other financial-related goal, ULIPs are one of the most practical solutions. They can definitely take you closer to your long-term goals.
These are some of the main benefits and features of ULIP and they speak for the fact as to why ULIPs are one of the widely preferred plans. It sure is a practical consideration for you as well. We will encourage you to consider your needs and decide whether you want to buy life insurance, ULIP, mutual funds, or combine various investments. Let’s start working towards your investment and financial goals.
Most read Articles
Life is a journey filled with dreams and responsibilities or what we call the certainties of life - buying a home, educating our children, planning for retirement, and securing our family's future.
Imagine you're planning the perfect road trip. You've got your route mapped out, your playlist set, and you've even packed your favorite snacks
If you’re eligible to pay income tax, you can easily file your returns yourself. The government has simplified the process by collecting taxes through three ways – TDS, advance tax, and self-assessment tax.