Life Insurance Products like ULIPs or Unit Linked Insurance Plan are reliable wealth creation solution over the long term. ULIP plans are market linked investment and insurance plans that offer its customers the triple benefit of protection, savings, and high ROI.
ULIP insurance plans are linked to the Capital Market. When an investor invests in ULIPs a portion of the premium is invested in life insurance while the rest is invested in equity, debt or a mix of the two. ULIPs saving element is managed by the professional fund managers. The investors also have the flexibility to switch his or her portfolio between the equity and debt later on.
ULIPs carry a lock-in period of 5 years. The insurance cover would cease immediately in case an investor surrenders the ULIP plan in the first three years. However, the surrender value can be paid only after three years.
How do best ULIP plans protect your dependents or your loved ones?
1. Manages the investor’s Loans and other Liabilities after his or her untimely demise. 2. Funds the monthly expenses and budget of the investor’s Children, Spouse and Aging Parents. 3. Funds the investor’s children’s marriage and education in his absence. 4. Investor’s family is able to manage the existing lifestyle after his or her untimely demise. 5. Takes care of any other special need of the investor’s family in his or her absence.
How ULIP Life Insurance benefit the investor?
1. ULIP plans offer its investors a lot of transparency and flexibility apart from encouraging goal based savings. 2. Investing in ULIP offers investors three benefits of protection, savings, and high ROI. 3. With ULIP tax saving option, Investors can enjoy Tax Benefits up to Rupees 46, 800 under section 80 C. 4. ULIP Plans encourages Savings while the investors enjoy the power of compounding. 5. ULIP tax saving plans offer zero capital gain tax unlike 10% in Mutual Funds. 6. Investing in Unit Linked Insurance Plans offers the investors double Tax benefits under section 80 C (Income Tax) and under Section 10(10D) (Tax-exempt returns). 7. Ideal financial product for aggressive investors who don’t mind Equity but want Insurance in their portfolio.
How much ULIP Insurance does an investor need?
ULIP is a complex Insurance cum investment Product. As a general rule, you should be insured up to ten times of your annual income. It would be difficult for a layman to identify what should be the appropriate sum assured for his ULIP Plan. Investment in ULIP Plan should be based on the investor’s risk appetite, financial goals, and time horizon.
The best way to invest in ULIP plan would be contacting a professional financial advisor
The Swaraj Finpro Private Limited Advantage!
It is tough for a common man to detect the elite insurance company or ULIP plan that suits him and his financial goals. This is why the investor should only invest after consulting professional financial experts like Swaraj Finpro Private Limited. Just keep your KYC documents and Cheque ready and leave the rest to Swaraj Finpro Private Limited.