he times are uncertain, and so is life. In such a case, it is essential to safeguard the future of our loved ones. It is equally important to plan the finances well and invest them strategically. Hence, more and more people are considering investing their money in a comprehensive life insurance policy. One such option which is indeed helpful is investing in ULIP Plan.
ULIP Plan is a comprehensive life insurance policy wherein the policyholder’s premium amount is invested in two different ways. A portion of the amount is invested in as a life cover, while the remaining portion is invested in either equity, debt or a combination of both. This combo life insurance plan safeguards the future of the policyholder by imparting a guaranteed return as well as by being a source of regular income. So without any further delay, let us start our detailed discussion about the rising popularity of a ULIP plan.
Why is a ULIP Investment Plan Becoming Popular?
This plan is gaining traction amongst the masses due to numerous ULIP benefits. They are listed below:
● Dual benefits are available in a ULIP plan
A Unit Linked Insurance Plan or ULIP Plan is designed by experts to offer clients dual benefits like investments and life insurance coverage. A ULIP investment in India is one of the most flexible and popular combo life insurance that can give you the required benefits in times of need. The policyholder can invest the premium amount in the fund of their choice and later also shuffle it without paying any extra charges for the same.
● Taxation benefits available
If you are investing your money in a ULIP investment plan, then you are eligible to obtain a tax deduction offer according to Section 80C of the Income Tax Act. one can claim up to ₹1,50,000 every year by investing their hard-earned money in a ULIP policy. In addition, the amount acquired by the nominee of the policyholder as a death benefit from the ULIP plan is exempted from the tax according to Section 10D of the Income Tax Act.
One can get several features from the ULIP, such as fund switches, top-up options, and premium redirections. You can easily switch or change the funds according to the situation, such as one can choose equity, debt, or balanced funds depending upon the risk appetite of the policyholder. You can also add money to your existing savings by choosing the top-up option. Whereas a premium redirection feature can offer you flexibility through which you can redirect your premiums into different areas according to your will.
For example, if you are investing in the Param RakshakPlus policy of Tata AIA life insurance plans, then you can reap this benefit. Similarly, you can check with other policies as well.
● One can expect higher returns
Many experts believe that a ULIP plan can offer a policyholder with higher returns as compared to other options available in the market. A ULIP investment plancan help you in gaining higher financial benefits by providing flexible features. In addition, there are many insurers that can offer the policyholders options such as wealth boosters or the addition of loyalties to stay invested and financially safe.
● Long-term benefits options
There are many ULIP investments in India that can help you in achieving your financial goals. A Unit Linked Insurance Plan is designed in a way so that you can stay invested for a long period resulting in a long-term benefit. You can use the money acquired to achieve benefits such as a down payment, education, and a home loan.
Staying financially invested is a goal for many of us. Most people are doing their job to achieve those particular milestones in life. So if you are one of those, then give ULIP investment a chance. There are many options available that you can try. In addition, you can also take help from professionals to get more information about this comprehensive life insurance policy.