Life's
responsibilities keep on increasing with time. Hence, securing a stable
financial position is very important. While getting an insurance policy is one
way of building a safety net for your family, there are other ways to be a
savvy investor.
Are you
wondering what can increase the return on your investments? Well, it's the ULIP
plan. Also known as a Unit Linked Insurance Plan, it is market-linked insurance
and comes with a dual savings advantage among many others.
If you
also wish to secure a financially better tomorrow, continue reading to learn
more about this plan.
What are ULIPs and How Do They Work?
A ULIP
plan is a unique financial product with a dual savings component. It is
generally offered by insurance companies because they give you a return based
on the combined investment opportunities and life insurance coverage. The dual
benefit of unit linked insurance plans can be an attractive option for you if
you're a growth-minded individual seeking to build wealth for the future.
What Does a ULIP Scheme Offer You?
ULIPs
offer several advantages for investors seeking growth potential. If you have
also opted for a similar plan, here's a look at what you may get:
1. Market-Linked
Returns: When you buy a ULIP, you benefit from the stock market's growth. As
the market grows, the returns also increase simultaneously.
2. Flexible
Investments: Choosing a ULIP for investments opens up two routes to the same
destination. While insurance is the same, to enjoy market benefits, you get a
variety of fund options. This also helps you to tailor your portfolio. This is
mainly based on your risk tolerance and investment goals.
3. Long-Term
Investment Scope: ULIPs cater well to long-term financial aspirations. The
market volatility may balance out over a longer period. Consequently, you may
achieve better returns.
4. Life
Insurance Cover: ULIP schemes have a life coverage element that helps take care
of your family in case of any mishap.
5. Tax
benefits: There are certain tax reliefs available with unit linked insurance
plans. You may save tax on the premium amount under Section 80C of the Income
Tax Act, 1961. In addition, the maturity returns are tax-free if they meet
specific conditions.
6. Insurance
Top-up: Some insurance companies offer ULIPs that allow you to invest with your
top-ups after the initial investment. This is actually an interesting method of
increasing your pool of funds over time and benefiting from rupee-cost
averaging.
7. Rider
Benefits: Some ULIP schemes offer optional rider benefits, which are basically
meant for additional coverage. They include, accidental death benefit, disability
benefit, or waiver of premium rider.
Tips to Maximise the Growth of Your Unit Linked Insurance Plan
Here are
some of the tips to maximise your savings on ULIP:
1. Select
Funds Carefully: You must consider your risk tolerance and investment goals
when choosing investment funds under the ULIP scheme.
2. Track
Investment Performance: Consistently inspect your ULIP statement to track the
execution of your opted funds. This allows you to make informed judgments
regarding possible fund switches if essential.
3. Stay
Invested: ULIPs are intended for long-haul wealth generation. Avoid making
impulsive moves based on short-lived market fluctuations.
Start Investing in ULIPs with Confidence
Unit
Linked Insurance Plans present a rare opportunity to combine investment advantages
with life protection. Being a good option for effective investors who aim at
wealth creation, ULIPs still require a serious approach to pursue them. In such
cases, a reliable insurance provider, like Canara HSBC Life Insurance, will be
able to assist your investment needs better.
Their
online unit linked insurance plan, Invest 4G, has several benefits for
long-term investors. The plan is flexible, allowing you to switch between fund
options, from partial withdrawals to wealth additions and boosters.
Visit
their official website to learn more about their ULIP plan today!
