Investing for the first time? Here’s why you should go for a ULIP

We all have long term goals and ambitions that remain unsaid and unachieved. This is because deep down we know it is only going to stay tugged in the corner of our hearts. However, the good news is that you can not only dare to dream it but also achieve it, at the same time. This is possible with the help of Unit Linked Insurance Plan (ULIP) that cover your financial benefits in order to attain those long term goals.

Investing in ULIPs offer customers with numerous benefits. One of the major advantages is the provision of life coverage. Additionally, other benefits like tax saving, higher returns, loyalty additions, and low costs have made ULIPs reach where it is today. In order to find out more details on the features of the ULIPs, keep reading:

Reasons why investment in ULIPs is beneficial:

  1. High Returns
    When you invest in a ULIP Plan, you are provided with the selection of funds of your own choice. There are multiple fund options which are equity funds, debt funds, and balanced funds. You can pick the fund that you wish to invest in based on your risk appetite. While investment in equity funds is for high-risk takers, invest in balanced funds as it promises moderate risks. If you’re a risk-averse person, then invest in debt funds.
  2. Low Costs
    If you’re looking for low costs, then see to it that you invest in Online ULIPs. Online ULIPs are the best way to ensure low costs as it does not include fund management charge and policy administration charge. As compared to offline ULIPs, online ULIPs are cheaper. Moreover, it does not involve any commission charged separately by an agent as you don’t have to directly deal with him.
  3. Tax Benefits
    Investing in ULIPs makes you less liable for the payment of taxes. This is because of the fact that a ULIP investment is deductible up to Rs. 1,50,000. Under section 80C and section 10(10D) of the Income Tax Act, 1961, the death and maturity benefits of a ULIP Policy are absolutely tax-free.
  4. Life Coverage
    Unlike mutual funds, ULIP investments offer a long term benefit of providing its customers with a life cover. At the time of an unfortunate event like the death of the policyholder, the insurance company offers sum assured or the fund value, provided whichever is the higher amount. A sum assured helps the nominees to meet their financial goals, even without the presence of the policyholder.
  5. Loyalty additions
    In order to take advantage of loyalty additions, find and invest in the best ULIP Plan in India. Their loyalty additions are offered to the customers only till the time you are invested in their plan. With the help of loyalty additions, you can sum up your investment amount to form the final figure.
  6. Lock-in period
    A long term goal like purchasing a house, buying a new car, and so forth deserves an investment in a ULIP Policy. Being a long term investment option, ULIPs provide its customers with a lock-in period of 5 years. A longer lock-in period not only guarantees a disciplined investment habit but also the growth of the money in the due course of investment.

Now that you know why investment in ULIPs will be worthy, plan your investment to the soonest to avail its benefits. As compelling as these reasons for investing in ULIP is, see to it that you opt for the right plan in order to make it your one-stop destination.

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