All of you have life goals, like your dream car, dream holiday, dream house, building your One Crore corpus and so on. Each day you fight back to come out from the struggles we have in our life. You even have to brawl to guarantee the best health care for yourselves and your loved ones. In short, you struggle to show your importance and work hard to make your dreams come true.
You struggle to accomplish the two different needs – Insurance and Investment. That’s where ULIP comes to our rescue! A Unit Linked Insurance Plan (ULIP) is an ideal product that offers the joint benefits of a Life Cover and Investment. Hence, the premiums invested in a ULIP plan have a twofold function. The former is Life Cover, which pays an amount called Sum Assured to your family members in your absence. The latter is Investment, which makes your money earn market-linked returns and on completion of the policy, the term pays a lump sum amount known as Maturity Benefit. This amount helps you in achieving your Life Goals.
A ULIP provides life cover to its fullest. You can boost your protection quotient by adding riders to meet up a particular safety needs. The life cover benefit payable is always the highest of your chosen sum assured or the policy fund value. Thus, it protects your loved ones from market instability when you are not around.
It gives complete freedom to everyone to select an investment strategy based on their knowledge. So, if you think you can handle your investment without any help, you can use the independent strategy to have access to your funds. It means, as per your risk appetite, you can invest in any one or more funds to get the perfect investment balance. In brief, these are custom-made funds which can assist you to accomplish your dreams.
You are also allowed to make additional investments in your ULIP policy through a top-up. It is an additional investment besides the regular premium you give yourself to pay all through the chosen policy term. This investment will definitely help you to get closer to your Life Goals and at the meanwhile raises your protection quotient too.
You will receive NAV disclosure on a daily basis and regular portfolio disclosure together with full details of all the charges applied to your policy. in a nutshell, you get a detailed account of where every single rupee is invested and utilized.
You can also change the fund in which your future premiums will get invested and even migrate your previous investments from one fund to another fund. This aids you in getting closer to your goals. Once the 5-year lock-in period is over, you can even meet up your emergency fund wants by withdrawing money from a ULIP policy.
A ULIP inculcates good saving habit among its people. The lock-in period of 5 years comes as a benefit here. It also provides its investor with tax benefits under Section 80C for the premiums paid and under Section 10 (10D) for the maturity and death benefit.
The most excellent and the easiest way to attain your Life Goals are to invest in a ULIP. Your Life Goals are the ones that are going to need good financial help from you after a period of 10 years or more. Hence, the motto you must go after is, save and invest early.