Buying a ULIP is a responsible move. You have to exercise caution and choose your ideal cover very attentively. This is simply because there are way too many options available to you and unless you know the basics of a ULIP, you won’t be able to make the correct selection. Take a look at this article to know more about ULIPs and how you can find the best ULIP for yourself.
What risks are covered through ULIP?
A ULIP mainly covers your life and also offers capital growth through investment in market linked funds. So the risk of losing your life and leaving your loved ones in a financially difficult situation is the greatest risk covered by a ULIP. A ULIP also covers the risk of losing all your money in the financial markets. A ULIP only invests a part of your hard earned money in the markets. Another part is safely kept in a life fund and so you will never end up losing the complete amount you pay for your ULIP. This is a risk that you have in a mutual fund, but not in a ULIP.
Benefits of buying ULIP
The modern day ULIPs are so well structured that you get not one but a host of benefits when you buy them. Some of the most useful benefits of a ULIP include:
- Common platform for investment and insurance: ULIP is a unique financial product that successfully allows you to combine the elements of insurance and investment. You do not have to worry about getting separate insurance plans and separate investment tools. You can just give your ULIP provider the amount of money you have designated and both the components will efficiently be taken care of.
- Investment for all risk types: Different people have different risk taking capabilities. If you are a risk taker and aim to get the highest returns out of your invested money, you will find a fund that suits you. If you are a more conservative player and like to take smaller risks and expect smaller returns, then also you will find a ULIP fund of your choice. So ULIPs are suitable for people with all kinds of financial risk appetites.
- Assured returns: Unlike a mutual fund where in the worst of cases you can lose all your invested money, a ULIP never lets your funds to deplete completely. Then, since a part of the invested amount is kept in a death benefit fund, there is absolutely no scope for you to lose your entire money. This gives a certain amount of stability to your investments and you can proceed with it with a lot of mental peace.
- Tax benefits: Like most other forms of life insurance, in ULIP too you can save a considerable amount of your hard earned money in tax benefits. You can get a tax benefit of up to INR 1.5 lakhs for the premium that you pay towards your ULIP. Read the ULIP policy documents very carefully to properly understand the tax clauses as doing this will give you a clearer and more accurate idea about the ULIP tax benefits.
- High returns: You can expect much higher returns on your investments when you buy a ULIP. A ULIP fetches a considerable higher yield as compared to a traditional endowment life insurance plan. So if you are very serious about your investments and have a higher financial goal, opt to invest in a ULIP.
Buying a ULIP
You can buy a ULIP online or offline. The online plans are cheaper and you get to make a completely unbiased choice. You also get to choose form a wider selection and that helps you find the most appropriate plan. Do not be afraid that an insurance agent won’t be able to guide you when you make the purchase online – you can at all times reach out to the ULIP provider and get your doubts cleared. So find your ideal ULIP on the internet and make a quick and easy purchase right away.
The final word
So as you can clearly see from the points mentioned above, a ULIP is a highly beneficial insurance cum investment platform. You can buy ULIPs with ease as they are widely available online. ULIPs are available at attractive rates and you get some fantastic deals from the top life insurance providers of India who sell the ULIPs to you. If you want a really useful money tool, look no further and choose the best ULIP for yourself. You will get many advantages out of it for sure.
