IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

Use Your ULIP to Reach Your Long-term Goals!

Date 07 Jul 2023
Time 5 mins read
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3.1
Rated by 100 readers

Life often throws us unexpected challenges, from climate change to pandemics and inflation. It becomes harder to score a run in the game of life. While we have been taught the value of saving to fulfill our goals and dreams, traditional savings options may no longer be as fruitful. Putting money in the bank nowadays can actually lead to losing money due to low-interest rates that are often lower than inflation. But don’t worry, because your wicketkeeper, ULIP, has got you covered! Here’s how you can reach your goals with your ULIP:

Using the Power of Long-Term Investment:

Your ULIP Plan is designed to deliver great returns when you stay invested for 10+ years. Unlike short-term investments, which may be prone to market fluctuations, your ULIP, if stayed invested for a long haul, allows you to ride out market volatility and benefit from compounding growth. By committing to a long-term investment horizon, you give your ULIP the opportunity to grow and generate substantial returns that can help you meet your goals.

Linking Your ULIP to Your Life Goals:

To make your ULIP investment more meaningful and keep yourself motivated, it's advisable to link it to a larger purpose or financial goal. For example, you link your ULIP investment to buying your dream home, planning for your child's wedding, or building a retirement corpus. Adding an emotional aspect to your investment journey strengthens your commitment, which can eventually help you achieve your goals.

Harnessing the Power of Patience:

Your ULIP possesses the capability to deliver enhanced returns over a longer time horizon say 10 years or more. By staying patient, you not only unlock the potential for better results, but also allow your ULIP to capitalize on market cycles. Harnessing such power of patience can maximize your growth opportunities and help you reach your goals.

Conclusion:

In the game of life, it's essential to have a reliable strategy to score runs and achieve your life goals. One such strategy is linking your ULIP investment to meaningful life goals, which can infuse purpose and motivation into your financial journey. Remember, patience and commitment are the keys to unlocking the true potential of your ULIP investment. Simply stay invested and let your ULIP fulfill your goals.

Keep an eye out for more valuable tips on leveraging your ULIP investment to reach your life goals. Together, let's hit it out of the park!

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FAQs

What is the lock-in period for ULIPs?
ULIPs have a mandatory lock-in period of five years as per regulations set by the Insurance Regulatory and Development Authority of India (IRDAI). During this period, you cannot surrender or withdraw the funds.
Can I switch between different ULIP funds?
Yes, ULIPs provide the flexibility to switch your investments between different funds based on your changing investment preferences or market conditions. Typically, a limited number of switches are allowed free of charge each year, beyond which charges may apply.
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  • Disclaimer

    Trade Logo "Aditya Birla Capital" displayed above is owned by ADITYA BIRLA MANAGEMENT CORPORATION PRIVATE LIMITED (Trademark Owner) and used by ADITYA BIRLA SUN LIFE INSURANCE COMPANY LIMITED (ABSLI) under the license.
    Aditya Birla Sun Life Insurance is only the name of the Company and do not in any way indicate the quality, future prospects or returns. The name of the funds offered does not in any way indicate their quality, future prospects or returns. In ULIP plans, the investment risk in the investment funds chosen by you is borne by you. Investment funds are subject to investment risks and unit prices may go up or down reflecting the market value of the underlying assets. Past performance is no guarantee of future results. The charges are guaranteed throughout the term of the policy unless specifically mentioned and subject to IRDAI approval. The value of the investment fund reflects the value of the underlying investments. These investments are subject to market risks and change in fundamentals such as tax rates, etc affecting the investment portfolio. The premium paid in unit linked life insurance policies are subject to investment risk associated with capital markets and the unit price of the units may go up or down based on the performance of investment fund and factors influencing the capital market and the policyholder is responsible for his/her decisions.  GST and any other applicable taxes levied as per extant tax laws shall be deducted from the premium or from the allotted units as applicable. Tax benefits are subject to change in the tax laws. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document. The Past performance of the Unit linked fund(s) of the company is not necessarily indicative of the future performance of any of these Unit linked fund(s). Linked Life insurance products are different from the traditional life insurance products and are subject to the risk factors.
    IN THIS POLICY, INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER.
    Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policy holder will not be able to withdraw/surrender the monies invested in Linked Insurance Products completely or partially till the end of the fiſth year from inception. For more details, please refer to your policy contract.
    Aditya Birla Sun Life Insurance Company Limited
    Write to us at
    Customer Service, Aditya Birla Sun Life Insurance Company Limited, G Corp Tech Park, 6th Floor, Kasar Wadavali, Ghodbunder Road, Thane - 400601.
    Registered office
    Aditya Birla Sun Life Insurance Company Limited, One World Centre, Tower 1, 16th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400 013 | +91 22 6723 9100 | CIN: U99999MH2000PLC128110 | IRDAI Regn. No. 109
    BEWARE OF SPURIOUS / FRAUD PHONE CALLS!
    IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.
    ADV/7/23-24/904