Understanding the Benefits of A Robust ULIP Plan

If you have set specific life goals of family vacations or a luxury car at some point in your life, then the good news is that with disciplined investments, you will be able to realize these dreams sooner or later. Unit Linked Insurance Plans (or ULIP plan)are some of the best financial instruments to reach these goals and many more in the future. Top ULIP plans give you the best of both worlds – investment and insurance, to secure not only your family’s financial future but also your present with wealth creation opportunities.

ULIPs are designed in such a way that they help you stay on top of the market game through good returns on your investment. This is because you get a combined benefit of investment growth and life cover.

It is due to this reason that the ULIP plan has emerged as one of the leading investment tools to create wealth and financial security. With the right plan, you will be able to balance your investments between equity and debt funds, thereby enhancing your returns. Top ULIP plans allow you to choose the asset classes as per your risk profile and also have the flexibility to make partial withdrawals whenever you need it. The fact that you also receive tax benefits by investing in a ULIP plan is just the icing on the cake!

Here are some of the benefits of ULIP investment plan.

1. Significant coverage against life’s uncertainties

If you want to achieve important life goals such as buying a house or paying for your child’s higher education abroad, then you need to start saving when you are young. At the same time, you also need to ensure that your family’s future is well protected, should something happen to you. ULIP plan offers a long-term investment opportunity that covers not only investments but also life’s uncertainties.

This financial instrument has been designed to address critical financial goals that allow you to invest your money in a disciplined manner. In the absence of this approach, you not only risk the future financial well being of your family but also compromise your short-term needs.

With the top ULIP plans, you have the freedom to choose your sum assured before you start the policy. Some plans may even allow you to increase the sum assured to suit your protection needs as per various stages in your life, such as marriage, childbirth, and retirement.

2. Maximal investment returns

Most ULIP plans come with an extensive range of debt and equity fund options. As a result, you can choose the best combination of asset classes as per financial needs as well as your risk appetite. At the same time, ULIPs also allow you to move your money across different funds to maximize your return.

3. Provide additional protection through riders

You can enhance the coverage of your ULIP plan with rider options and get additional security. For instance, Unit Linked accident and disability rider give you an added layer of protection in case of an accident. At the same time, many such rider options expand your life cover to make it more comprehensive to protect against life’s uncertainties.

4. Flexibility to override market volatilities

With ULIP plans, you get to choose amongst high, medium, and low-risk investments in the same policy. Some policies will even allow you to switch between asset classes as per your risk-taking ability without any additional expense. Moreover, you can also enhance your investment portfolio through top-ups to make the most of available investment opportunities influenced by external factors or your income.

ULIP gives you the benefits of participating in a market-linked stock market with the additional benefit of a risk cover. You also get a dedicated account manager who will keep an eye on your investments to help you earn maximum returns.

5. Quick and hassle-free payouts

ULIPsare a preferred way to invest because it covers you for the unforeseen future events. You can make a partial withdrawal wherein you are allowed to withdraw funds for the first five years from your account to pay for emergencies.

6. Tax benefit on premium

The premiums paid towards the ULIP plan are tax-exempt to the permissible limit of 1.5L under section 80C of the Income Tax Act, 1961. Plus, the returns on ULIP investments are also tax-free.

Top ULIP plans offer several advantages. One of the key benefits of ULIP is that it provides insurance cover, wealth creation opportunities, and also save taxes at the same time. Therefore, they are a one-stop solution for your long-term financial goals and a reliable cover to protect your family’s financial future.

If you are all set to invest in ULIP plans, then it is advisable that you thoroughly review all the available options online. Top ULIP plans from reliable insurers, such as Max Life Insurance, empower you to make an informed decision by comparing and selecting the right policies that offer you maximum benefit at minimal cost and risk.