Learn How To Master The Art Of Safe Investment: ULIP Insurance

Safe Investment Is An Art That You Can Master – Click Here To Know-How

Saving your hard-earned money is a practice that cannot be compensated no matter what. Undoubtedly, making proper investments is one of the most crucial financial practices that can be developed with regular efforts.

If you want to achieve all the aspirations of your life and reinforce your financial security, you need to have a reliable and return-oriented investment plan that can help you beat the rate of inflation and help you grow your capital significantly.

Investing in Unit Linked Insurance Policies, abbreviated as ULIP insurance can offer a great boost to your existing wealth, especially when you add it to your investment portfolio along with other tactics to manage your money efficiently.

 If you haven’t already heard about it, a ULIP plan is an investment product that provides combined benefits of life cover and returns from market-linked investments. They’re generally unaffected by the re-introduction of the Long-term Capital Gains Tax (LTCG).

Additionally, withULIP insurance, you can easily switch between debt and equity fund options without incurring any additional taxes. Here’s a list of some of the salient features offered by ULIP plans for efficient financial growth:

Various Fund Options

ULIP plans offer you a range of fund options to choose from as per your varying needs. The variety of options can be either debt-related, equity-related, or a combination of both in specific ratios. Based on your ever-changing life situations and risk appetite, you can easily shift between various fund options at any point of your policy tenure. While debt funds are ideal for risk-averse investors looking for assured returns, equity-related funds are perfect for investors with a higher risk appetite.

Easy Fund Management

Along with a great return on investment, ULIPsalso make it easier to manage your funds without having to keep an eye on it daily. The fund managers of the insurance company have the responsibility to manage your funds as a part of the policy benefit. With dedicated experts to manage your funds on your behalf, you can always have peace of mind that your invested capital is safe. Moreover, you can always choose to review the performance of your funds and investment portfolio to make sure nothing goes wrong.

Unparalleled Transparency

A ULIP plan is a very transparent financial instrument that provides you information about your preferred funds such as their performance and the charges levied by the insurer for the same. Moreover, you can also check the previous returns of a particular ULIP plan and determine whether it’s reliable enough to invest in or not. With such a great level of transparency in the process, your investments are completely monitored and measured.

Great Liquidity

As ULIP Insurances allow you to make partial withdrawals, you can enjoy good flexibility with your investments by being able to use your funds for emergencies and any unforeseen events. Moreover, at such times when liquidated funds are at their least, these plans can prove to be greatly helpful by allowing you to utilize your funds in a readily available form.

Tax Benefits

The premiums that you pay for the benefits associated with a ULIP plan are eligible for tax benefits and deductions under section 80C of the Income Tax Act of India. Moreover, the returns, as well as the income gained through the plan, are also free from taxes. Even the gains earned through short-term investments made by switching between available fund options don’t undergo any taxation. Furthermore, as per section 10(10D) of the Income Tax Act, the death benefits are also exempted from levitation of taxes.

Market-Linked Returns

A small portion of the premiums that you pay towards the policy is utilized for investments in market-linked instruments, including funds like debt and equity in a specified manner. This allows you to earn even higher returns on your investments. All you need to make sure is that you have a mix of good fund options, and you’ll be able to see your capital grow exponentially in the long term.

Exceptional Flexibility

ULIP plans are also popular for the level of flexibility they offer to an investor. It allows you to switch between multiple fund options based on your preferences, that too without incurring any charges at all. Moreover, you can also make partial withdrawals from the funds in the event of any sudden emergencies. On top of that, these plans also allow you to invest additional money as top-ups, apart from your regular premium payments.

Retirement Planning

As ULIP Insurances consist of equity-related funds that are capable of providing high returns in the long term, they can also add great value to your retirement portfolio. If you want to accumulate a sufficient amount of money for your retirement, ULIP plans are the perfect investment option for you. You can start with equities in your early investment days and progressively shift to conservative debt funds later.

Life Goals

If you have some specific life goals that require a significant amount of money such as funding your business, purchasing a property, or financing your child’s education, ULIP Insurance plans can prove to be helpful for that too. By investing in these plans, you can gain sweet returns from the market and accumulate a corpus of wealth that can be used to fund the various goals and aspirations of your life through the partial withdrawal facility available in the plan.

Final Words

There are various types of investment options available in India that can be used to make your wealth grow. Out of all the other variants, ULIP plans are one of the most popular financial products ever known.

With the various features of these investment schemes, you not only accumulate money for your future goals but also maintain backup monetary resources that can be used in case of any sudden emergencies that may occur in your lifetime.

Therefore, if you want to prevent your money from getting clogged up by inflation and provide a financially secure future to your family, make sure that you invest in a life Insurance plan and enjoy great benefits in the long term.