It is essential to invest your hard-earned money in the right place and probably save it for your future requirements. There are plenty of avenues which you can take into consideration to make sound financial investments. You can find plenty of financial instruments in the market which are beneficial to invest your money in, such as mutual funds, fixed deposits, and insurance plans. If you are looking for the most reliable and high earning method to invest your money, then you think about ULIP (Unit Linked Insurance Plan).
What is Unit Linked Insurance Plan?
Providing the benefits of insurance as well as investment, ULIP is an insurance product that ideally lets you invest your money. The premium of ULIP is divided into two different parts; to offer life coverage and investment in the money market instrument.
Why Must You Invest in ULIP?
To Maximize Returns
ULIP gives you a wide range of investment options, such as equity funds, debt funds, balanced funds, etc. You can choose your ideal option based on your risk exposure. One of the major takeaways of ULIP is that you can switch between these funds anytime based on the market scenario. It increases the chances of higher returns on your investment.
To Avail Complete Life Cover
Families might face financial troubles in the event of the sudden death of the policyholder. A ULIP ensures that all the beneficiaries are looked after in the absence of the policyholder by providing them life coverage. The sum assured in the coverage is used to meet the financial obligations of the beneficiaries such as daily expenses, fees, loan repayments, etc. if you want to safeguard your loved one’s interests from financial troubles, then ULIP should be your first concern.
To Enjoy Long Term Growth
Not every insurance product guaranteed you long term growth, but one of the great things about ULIP is its long term benefits. It allows you to pay a premium for a longer period of time that eventually lets you enjoy the benefits of market investment for a longer tenure. It also increases the chances of higher returns and the amount extracted from such long term investment can be used to meet specific goals as well.
To Avail Tax Benefits
UILP is also a great insurance product from the tax perspective. It helps in reducing tax liability via premiums. The premium you pay towards ULIP will provide you tax benefits under Section 80C. Apart from death, the premium paid to such a scheme is tax-free. So, if you are looking for some additional tax benefits that offer you investment advantages as well, then you must think about ULIP.
It is important to make a sound financial investment that can provide you with future coverage as well. With plenty of financial instruments available in the market, choosing the ideal means might become a daunting task.
ULIP is certainly one of the effective insurance products to make your investment today. Offering a great balance between providing insurance coverage and maximizing returns, ULIP also enhances your investment portfolio.
The above mentioned were a few reasons that will definitely compel you to invest in ULIP at the earliest. Undoubtedly, it is a one-stop solution for all your financial security and long term financial goals.