What is ULIP?

Life cover

First and foremost, with ULIPs you get a life cover coupled with investment. It offers security that a investors family can fall back on in case of emergencies like the untimely death of the investor etc.

Income tax benefits

Premium paid towards a ULIP is eligible for a tax deduction under Section 80C. Additionally, the returns out of the policy on maturity are exempt from income tax under Section 10(10D) of the Income-tax Act. This is a dual benefit that you can claim with this policy.

Finance Long Term Goals

If you have long-term goals like buying a house, a new car, marriage, etc., then ULIP is a good investment option because the money gets compounded. As a result, the net returns are generally more.) This stands true even if you want to exit after the 5 year lock-in period in comparison to not having invested the amount at all and retaining it in a savings account or in the form of an FD.

The flexibility of a portfolio switch

As already mentioned, ULIPS are usually designed in a way that they allow you to switch your portfolio between debt and equity based on your risk appetite as well as your knowledge of how the market is performing. Insurance companies, on the other hand, allow a very few numbers of switches free of cost.

Low charges

ULIPs come with very low alocation charges. As per IRDA the annual charges applicable to ULIP plans range between 2-2.5% pa for first 10 yrs.

Savings & Investments

ULIPs give you the advantage of switching between funds depending upon their performance. This helps you to get a better maturity benefits on your invested amount by monitoring the growth..

Covid-19 Covers

Ensuring financial protection to your family in case of your covid.

Family’s Protection

ULIP is a life insurance plus investment plan that offers a life cover to the policyholder. In case of an unfortunate death, the dependant family of the policyholder will still be financially secured.

Saving for Future Goals

When it comes to fulfilling future goals such as buying a new home, child’s education, retirement planning etc., savings are a must. Without long term savings plans, ... it is difficult to balance short term needs and future goals. ULIPs help you save systematically and help you plan for these future goals. Read more