- 16 NOV 2017
How can ULIP grow your Savings & Investments
A Unit Linked Insurance Plan is an insurance product that provides you the facility to invest in different asset classes and at the same time get a life cover against any unfortunate event. A certain portion of the premium you pay is invested in the funds of your choice, allowing you to earn a return on your investments.
Unit Linked Insurance plans have become a vital investment product to achieve the financial goals efficiently. As it provides a cost-effective method to earn a return on your investments, it allows the policyholder to grow their savings over time and create wealth.
How can you grow your savings by buying a ULIP?
There are many reasons which allow you to grow your savings if you choose to invest in a ULIP:
When you buy a ULIP, you are provided with a maturity benefit at the end of the policy term. It means that the company gives you a lump sum amount when the policy term has matured. It is a perfect tool to grow your overall life savings. The maturity benefit is a lump sum amount and depends on the kind of policy you have taken.
For example, if you have a ULIP with a policy amount of 15 lakhs and policy term of 25 years, you will be provided with 15 lakhs at the end of 25 years or after the death of the policyholder, whichever is earlier. This amount will result in increasing your savings by a huge margin, and you can allocate this amount towards the needs of your family.
Albert Einstein once said: “The power of compounding is the 8th wonder of the world”. This proves to be right, as long as ULIPs are concerned. When you buy a ULIP, you can invest a certain portion of your premium in funds of your choice like equity, debt, etc. In return for your periodic investment, you are rewarded with a fixed rate of interest which is compounding in nature.
Over an extended period, it can grow your savings by a significant margin. For example, if you pay 25,000 Rs as premium annually for 10 years with a rate of compound interest of 8% per annum, you will earn 8.44 lakh Rs at the end of the 10 years. And this is when your actual investment is only 2.5 lakhs.
ULIPs are a good tool to save tax. The premium paid towards a ULIP is fully deductible from tax subject to certain conditions. This will allow you as a policyholder to grow your savings as you won't have to pay tax on your premium amount.
Apart from this, the death and maturity benefit amount you will get is also deductible from your taxable income under section 80C and 10(10D), so you don’t have to worry about giving a chunk of your savings as a tax to the government.
Edelweiss Tokio Life ULIPs have been developed based on our understanding of Indian customers’ diverse financial needs and help them through all their life stages. Our ULIPs will also allow you to save a huge amount of tax under section 80C and 10(10D) of Income Tax Act, 1961.
- 18 JUN. 2018
Fighting critical illnesses financially? Yes, it is possible!
Health expenses have increased drastically. A basic health insurance policy that pays hospitalization bills is a must-have. Let’s assume you have sufficient individual health insurance cover of at least Rs.5 lakh , your hospitalization will be taken care of. But do you think it will be sufficient to provide cover against critical illnesses like cancer, heart disease, chronic kidney disorder, etc?read more