You would have definitely heard about ULIP or Unit Linked Insurance Plan when you go to buy a life insurance policy for yourself. It is a different kind of insurance claim that not just helps you secure your future and get good returns when you or your family need it, but also helps your money to grow at a very commendable speed. Of course, the speed at which your investments grow depends upon the risk you take with your money. But it is a very practical kind of insurance plan that has various benefits for the policyholder . And if you want to know more about it, keep reading!
Features of ULIP
You get the freedom to choose the life cover amount, the premium amount and even the periodic schedule of paying the premiums. (You can decide about all these factors taking into consideration your saving requirements and financial obligations)
In ULIP, a part of your investment is dedicated towards the life cover that you opted for. The second part is used in the investment section that you prefer. (It can be a stock market, equity fund or such options)
The amount of money you invest in either equity funds, stock market or government bonds decides upon the value of your policy. If you stay longer in this policy, the chances of getting high returns are more.
In case if the policyholder met with any unfortunate incident , ULIP allows the family members to get the promised amount of moms from the funds and coverage plans.
Benefits of investing in ULIP
- Pick the life cover you want — In most life insurance policies and investment plans, the return rate is around 10 times your annual premium payment. But if you pick this plan, you can even avail 40 times your premium amount at the end of the policy. It totally depends upon the life cover plan that you pick for yourself.
- Convenient premium payment option — With ULIP, you just don’t have to pay the premium at the end or start of every month. If you want, you can pick up a plan where you pay the premium every 15 days or maybe twice a year or once a year.
- Choose the type of investments you want to make — With ULIP, even your financial investment decisions are taken by you. You can either be very risky and opt for investing in the share market or try for the equity funds which are very subtle yet offer a promising amount and even staying balanced between both the options are in your hands. And what’s more, you can even switch from the type of investment plan that you have chosen if you are not getting fruitful results.
- Partial withdrawal possible — Sometimes there might be an unfortunate event or you require your money urgently. The partial withdrawal policy available with this plan helps you get that money when you need it the most.
- Tax benefits — The greatest news by investing through the Unit Linked Insurance Plan is saving from your regular taxation amount. Under section 80C you get multiple benefits in your premium amounts while opting for an insurance plan.
Also Read: How ULIP Helps You Meet Long-Term Life Goals
