We all know for a fact that capital market is lucrative and can provide with excellent returns. But the risk involved and time it consumes to track the investments can prove to be tedious. It is also important that we understand how the market works and make the right choices to make money out of it. Else, it can lead to huge losses. To stay away from all these hassles you can choose to invest in a Unit Linked Insurance Plan (ULIP). These ULIP plans offer you the dual benefit of the right investment and also the benefits that come along with any insurance policy.
Benefits:
- Flexible portfolios: When you invest in a ULIP, you also get to use the advantage of switching your funds from one form of investment to another based on the market risk and fluctuation. For instance you can leverage your funds in debt instruments and reduce your investment amount in equities. It also offers you the benefit to redirect your premium payments for the forthcoming years keeping your basic fund as it is.
- Tax benefits: Based on several exemptions and by buying ULIP in India you can save more money by investing in ULIPs and reaping the tax benefits associated with the same.
- Withdrawal: Usually ULIP are meant for long-term investment. Few investors might face some unexpected changes and may need some money urgently. In such situations the policy holder can partially withdraw a sum before the maturity date. However, this depends on the terms and tenure of the policy.
- Save time and enjoy your peace: Managing the stocks is a tough task not which is not meant and enjoyed by everyone. ULIPs become an ideal choice for such investors. Along with ULIP you can have peace of mind by knowing that your funds are managed by experts. There are several investment options which are designed to help you earn more.
It is often assumed that ULIP is an expensive investment means which is absolutely false. It must be understood that there are several regulations as per which the banks cannot levy extreme charges on the investors. This point makes it clear that it is a perfect investment choice for all the investors. It must also be noted that ULIPs can be bought online also. You can check the various online ULIP policies available on the website and choose the ideal one. After selecting the best-suited plan you can then input your personal details. You can know your premium amount by filling the amount that you are ready to invest in ULIP. You can then buy the policy with the net banking option. It is also believed that ULIP does not really provide the yield which is promised. But that isn’t really the case. With appropriate fund shifting, with basic market research and with the help of expert fund managers, you can make the best profits. All these along with the benefits of an insurance cover.
Thus, ULIP is an ideal investment choice for all those people who believe in investing right and enjoying more benefits.