Swapnil was an IT professional who always liked the idea about investment and savings. A week before his monthly salary he would start planning and calculate how much amount he needs to save once he receives his salary but the moment his salary is credited, the bills, rent, EMIs start approaching and he is unable to save anything!
This was an ongoing cycle and Swapnil seemed quite relaxed about it for the first few years of his career. As he grew in his career ladder, he realized that he needed to save on taxes because the pie deducted from his package was now higher. Swapnil decided to speak to his colleague Rakesh.
Upon hearing that Swapnil had yet not invested in any plan, Rajesh was shocked. Rajesh advised him to immediately research online and invest in a plan that would be suitable for him. Rajesh also suggested him to invest in ULIPs as the maturity amount received will also be tax exempted.
Swapnil wasn’t very aware of various financial plans and whether ULIPs are researched online about ULIPs and found out that;
Unit-Linked Insurance Plans (ULIPs) are one such investment avenue that can fetch you good returns and at the same time, give you a life cover. It acts as your insurance provider and also helps you invest in equities of your choice for long-term needs.
The advantages of ULIP: The three D’s
– Double benefit: The double benefit of investment and life cover makes it a unique option. This dual role not only helps the policyholder to achieve his goals but also secures his financial dependents. In the case of untimely death of the policyholder a claim is paid to the nominee as a sum assured.
– De-taxable: Let’s not forget the tax benefit under section 80C as well as the exemption on all payouts under section 10(10D) of the Income Tax Act, 1961.
– Durable and flexible: A great long-term investment option as you have the choice to put in your money where you see the potential for it to grow. The power of compounding will help you accumulate your wealth to a great extent and it will help you attain good returns in the long run. You can also switch between funds as per your risk appetite.
In the wake of Long-Term Capital Gains (LTCG) tax making a return from the financial year 2018-19, ULIPs a complete package in itself — can be your preferred choice of investment as there is no such tax levied on long-term capital gains under the investments in ULIPs. Thus, in order to fulfill your objective such as child education, marriage, buying a house, you can invest in a new age ULIP that can ensure your wealth accumulates.
Important features of the new age plan
- Zero allocation and administration charges: 100% of your premium is invested in the funds as per your chosen investment strategy. No premium allocation and policy administration charges are levied throughout the policy term.
- Additional allocation Edelweiss Tokio Life – Wealth Plus ensures that 100% of premium paid by you is allocated to the funds as per your choice and investment Strategy. In addition to this, the plan provides additional allocation every year starting from the 1st Policy Year until the end of the premium paying term.
After researching and understanding the benefits of ULIPs, Swapnil was not only convinced that he needed to invest in ULIPs but he had also made his preferred choice that is Edelweiss Tokio Life Wealth Plus.