Why is it Recommended to have a ULIP Policy in Your Investment Portfolio?

A ULIP plan is a multidimensional investment tool that can be used for several financial goals. Good ULIP plans  are safe, flexible, and practical. It can be purchased by following a few simple steps. ULIP renewal processes are also smooth and free from hassles. In addition to this, you can avail of ULIP tax benefit on your premiums and maturity payout. All of these factors and numerous others make ULIPs a much-recommended tool in your investment portfolio.

Still not convinced? Read on to know more about a ULIP policy.

10 Reasons to add a ULIP plan to your investment portfolio:

1.  They secure your family members:

A ULIP plan is a unique product that can provide you with twin benefits. On the one hand, you get to secure your loved ones with a life cover, and on the other hand, you get to secure your future with high returns. ULIP funds offer financial security like no other.

2. Multiple risk options:

A ULIP plan offers an option for every risk appetite. You can pick different fund options, such as equity, debt, and balanced funds. You can also make switches from one fund to another as per the fluctuations of the market. ULIPs can suit all types of investors and be adjusted as per any goal and timeline. You can read the ULIP statement to get information on the underlying equity, debt, and balanced funds that you invest in. Based on your performance, you can make changes to your portfolio as and when you like.

3. Easy purchase and renewal methods:

Buying a new plan as well as ULIP renewal takes very little time. In most cases, you can purchase a plan of your choice online from the comfort of your home. All you need to do is visit the insurance provider’s website, select a plan, submit your KYC documents, and make the payment. It is extremely quick and hassle-free.  

4. ULIP tax benefit:

A ULIP investment comes with several tax benefits, such as tax deduction on the premiums paid under Section 80 (C) and tax-free death benefit under Section 10 (10D). This can help you save more in the long run.

5. Top up options

As you grow in your career and earn more, you can divert a part of it to your investments too. You can increase your investment with a premium top-up option anytime you want.

6.  Power of compounding

All good ULIP plans help you increase your net worth with the power of compounding. When you invest in the market, your money grows and offers returns that can help you beat inflation. In fact, the longer your stay invested, the better can be your returns.

7.  Guaranteed earnings

You can earn guaranteed additions to your invested capital with a ULIP plan. Insurance providers offer guaranteed loyalty additions, wealth boosters, and more as rewards for opting to stay invested for the long term. These are automatically added to your fund after a certain policy year and contribute immensely to your overall earnings.

8. Suitability for all investors

Whether you are a new investor or a well experienced one, a ULIP policy can be added to any investment portfolio. With low and affordable premiums, young investors who have just started their careers and may not be earning high salaries can also invest in a ULIP. Similarly, investors who may have amassed a substantial amount of money can opt for lump sum investments.

9. Goal-based investing

A ULIP plan lets you invest for specific goals, such as retirement, higher education, marriage, home purchase, travel, and more. You can create a portfolio strategy that is suited to each goal and earn profits accordingly. This helps you streamline your finances more efficiently, and you can plan your future better.

10. Safety of investment

ULIP funds are safe investment tools that can be accommodated into anyone’s investment’s plans. The combination of equity, debt, and balanced funds make them safe instruments. Moreover, picking a credible insurance company further ensures financial security.

Wealth Secure+: Edelweiss Tokio Life Insurance ULIP Plan

Given the above points, it is clear that a ULIP plan can offer many advantages to you. So, if you are thinking of investing in a ULIP, you can consider investing in the Wealth Secure+ Plan by Edelweiss Tokio Life Insurance. Here’s why:

• There are seven diverse funds in the plan that you can choose from.
• The plan adds loyalty and maturity additions to your corpus. Loyalty additions are added from the end of your 6th policy year. Booster additions are added every 5th year at the end of the 10th policy year. And maturity additions are added at the end of your policy term.
• The plan has low premiums starting from Rs. 1000 per month.
• There is an option to add top-up premiums for increased flexibility.
• The plan comes with a systematic withdrawal plan for payments, such as monthly, quarterly, semi-annually, or annually.
• The plan gives you three options that you can choose depending on your life stage. These are:

» Individual Option: Ideal for single investors with no family responsibility.

» Joint Cover Option: Ideal for married couples who may want to invest together.

» Child Option: Suited for parents who are looking to save for their children’s future expenses.

• The plan offers tax benefits under Section 80(C) and Section 10(10D).

To sum it up

A ULIP policy is a highly recommended tool for any investment portfolio. Hence, make sure to invest in one as soon as you can. Not only will this offer you financial freedom, but it will also keep your family members safe. However, while picking a ULIP plan, it is important to keep in mind to go for a reputed insurance company like Edelweiss Tokio Life Insurance. This will ensure safety for your invested capital, timely claim settlements, and a smooth customer experience.

 

Siddhant Dubey - Writer & Photographer

Siddhant works as a freelance content writer who is interested in a wide range of spheres from photography and personal finance to cooking. He is also an aspiring photographer striving to showcase life around him through his vision.