We are sure that there are tons of other insurance products in the market that will benefit you. But can you really trust them all in order to help you achieve your life goals? Investing in an insurance policy is easy but reaping the benefits out of those policies can be complex. Therefore, invest in a policy like the Unit Linked Insurance Plan (ULIP) which offers features that are an absolute necessity for your dreams to turn into reality.
Take a look at these features offered by ULIPs which are not only worthy for an investor but also for his family:
Key features of the ULIP Policy:
A product like ULIP is appealing to an investor because of its dual benefitting system. Being dual in nature, ULIPs are a mix of insurance and investment, as a whole. When you invest in ULIPs, you will surely receive the benefits of the protection of your family as well as the growth of your funds.
Under section 80C of the Income Tax Act, 1961, ULIPs are prohibited from the payment of taxes. In simpler words, the premium paid towards the ULIPs is completely tax-free.
Unlike traditional insurance policies, ULIPs help the investors to garner higher returns from his investments. Higher returns simply ensure investors with long term benefits in the future.
A ULIP Policy guarantees its investors with a life cover. Having a life coverage means the provision of either the sum assured or the fund value, whichever is higher.
- Loyalty Addition
In order to enhance the fund value at the time of the maturity date, a ULIP Policy serves its investors with loyalty additions.
Multiple funds options are the most favorite feature of the ULIPs. Amongst the funds like equity, debt, and balanced funds, the investor is allowed to pick one as per his risk appetite. Later, he can enable either the switching or the redirection of the funds for his own benefits.
Unlike mutual funds, every ULIP Plan that you invest in provides the investors with a charge structure. ULIP charges include policy administration charges, premium allocation charges, mortality charges, and fund management charges.
With the help of a ULIP Policy, you can partially withdraw your funds which you have invested in. These withdrawals that you make in the due course of time might be free of cost.
- Lock-in period
The lock-in period offered by ULIPs is for a period of 5 years. Their lock-in period is beneficial if you’re looking for long term investment as well as higher returns.
Due to the flexibility of ULIPs, investors can easily control the policies themselves. Before investing in this policy, investors are aware of its benefits, lock-in periods, brochures and so forth.
Under a ULIP Plan, RCA stands for ‘Rupee Cost Averaging.’ In order to eliminate the risks of timing the market, RCAs are introduced. It helps you to manage the highs and lows in the market by averaging the costs of the units that you purchase.
The best possible way in order to achieve all your long term goals is by investing in a ULIP. Now that you have a better understanding of the ULIP features, what are you waiting for? Invest in a ULIP Plan today so that you can grow your funds for the future. Trust us, ULIPs not only help you fulfill your dreams but also ensure the security of your family’s financial future.