As an investor, you not only have multiple investment responsibilities but also the fear of market volatility. With tons of things going on in mind, there are times when an investor can go wrong with his decision of investment. One wrong decision can lead to loss of funds which eventually ruins your family’s financial stability. Therefore, an investment in a Unit Linked Insurance Plan (ULIP) is important as it keeps you protected in all the walks of your life. Take a look at these essential reasons why ULIPs should be your go-to investment plan:
What is a Unit Linked Insurance Plan (ULIP)?
When you’re growing up, you have multiple dreams and aspirations to look forward to. However, there are times when you’re unable to chase those dreams due to lack of funds or resources. In order to help you with such circumstances, a ULIP Plan comes into the picture by offering you and your family with the right financial support. A ULIP Insurance makes provision of a life cover that keeps you and your loved ones protected as well as allows the creation of wealth for your better future.
Investing in ULIPs ensures growth and protection of the policyholder under a single plan. For instance, you are not only securing your family from an unfortunate event like death but also ensuring you’re participating in the equity markets. Whether you’re saving money for a bright future or developing an emergency fund, investment in ULIPs makes sure that all your long-term, financial goals are met.
Why select ULIP rather than other investment options?
Apart from its dual benefits, there are other major reasons that need to be taken into consideration before a ULIP investment. Take a look at these top 3 reasons mentioned below:
1. Generation of wealth
The best way to quickly accumulate wealth is by investing in the new-age ULIP plans. This is simply because of the fact that these new-age ULIPs guarantee low costs as well as tax benefits on the investments. Another way for the generation of wealth is by staying locked in for a longer duration of time. The higher the duration of ULIPs, the higher the accumulation of funds.
2. Long term investment
Typically, a ULIP Policy provides its policyholders with a lock-in period of 5 years. In order to keep the investors locked in for a longer duration of time, ULIPs allow extra benefits like the loyalty additions. These loyalty additions are added up to the final sum of your existing investment. The main motive of a long term policy is the betterment of the family by allowing the growth of the money in the due course of the policy.
3. Retirement solution
While a majority of people solely depend on their savings, it is advisable to invest in a ULIP Policy before your retirement. Since a ULIP is the perfect combination of insurance as well as investment, it is the best way to ensure a relaxed and happy retired life. While investing before the retirement phase facilitates low cost, investment after the retirement means payment of hefty premiums.
Now that you know why ULIPs should be a go-to investment plan, what are you waiting for? Purchase a ULIP Policy without any further ado in order to avail the maximum ULIP benefits. The earlier you make an investment, the easier it is for you. Opt for a reputable company and the right type of policy in order to meet all your financial goals for the longest period of time. Contact an expert as he will walk you through the entire planning and processes required for a ULIP Policy.