At the back of every person's mind is the fear that their loved ones will be left
unprotected in the future. This fear can drive people to work extremely hard and
explore every avenue to safeguard their loved ones. It even gives some people sleepless
nights, especially if they are already under financial stress. But they soon find
that their hard work yields only minimal results: there is never enough money to
pay major expenses!
Soon, it dawns on you that just your income cannot suffice. You need to explore
an option to create wealth for the future. At this juncture, you realize that you
must put your faith in Unit Linked Insurance Plans (ULIPs).
The benefits of ULIPs
Of the many reasons to invest in ULIP plans, five stand out more than the rest.
Good returns: After the premium of the unit linked plan is paid by the policy
holder, the insurance company allots units of high grade shares. The higher the
investment, the better is the quality of the allotted units. Since these are high
grade equities, the returns on them are guaranteed. Thus, ULIP plans offer good
Inputs from experienced fund managers: It is not necessary for the policy
holders to monitor the fund on a daily basis, or to even have a working knowledge
of the markets. Simply buy ULIP online, and a fund manager handles the portfolio
and advises on the best investment practices. Hence, the success of the ULIP plan
is guaranteed, since an experienced manager is invested in it.
Freedom to influence returns: The best part about investing in ULIPs is that
they offer policy holders the chance to reorient the portfolio. If you are not happy
with the fund's performance, you can switch to better performing units at a later
date. This directly influences the outcome of the ULIP plan and thus, the returns
accrued on it.
Creates a sizeable fund of money: The ULIPs in India are creating wealth
for scores of Indians all over the country. When it is structured well and invested
in regularly, it grows into a large sum of money over a period of time.
Tax benefits: All ULIP plans in India are liable for tax deduction. Tax benefits
are extended under Sec 80C of the Income Tax Act, 1961. Even the sum assured of
the plan is tax deductible. This adds to the ULIP's overall profitability.