These are 6 reasons why a ULIP plan is suitable for all

1. These are 6 reasons why a ULIP plan is suitable for all

2. ULIPs are a great tool to grow your money and safeguard the financial wellbeing of your family. They combine the peace of mind of insurance with the returns of a market linked investment instrument. But even with such benefits, there are many potential customers who think that ULIPs are not for them and give these plans a miss. This article will highlight a few reasons why investing in a ULIP is always a good option that is suitable for all. 

3. Firstly a ULIP plan allows you invest as per your risk appetite

4. Every one of us has a varying risk appetite. Some of us might be completely risk-averse whereas some of us don’t mind the risk as long as there is also a promise of good returns. In fact, some people’s risk appetite also changes with their age; when they are young they don’t mind risk but as they grow older they start to look for safer investment opportunities. That said, a ULIP has something each type of risk appetite. This is because ULIPs allow you to choose between conservative debt linked funds and high-risk, high-return funds as well. Therefore you can invest as per your requirement and outlook. Moreover, if you change your mind about the type of investment you want, ULIPs allow you to switch your money between both these funds. This allows you to invest as per your needs.

5. You can choose the life cover of your ULIP plan.

6. Life insurance is very important. It gives you the peace of mind that no matter what happens, your family’s financial wellbeing is taken care off. Unlike other investment instruments, a ULIP provides you the additional benefit of a life cover. This life cover ensure that the goals you have for you and your family are always met, even if you are no longer around to do so yourself. When you invest in a ULIP, you can choose a life cover as per your needs. Some plans also allow you the option to decrease the sum assured if you feel you do not need such a level of coverage. 

7. Tax benefits of a ULIP plan.

8. A ULIP can help you save a good amount of taxes every year. This is because, under section 80C of the Indian Income Tax Act, 1961, the premiums you pay towards a life insurance plan can be used to avail tax deductions up to Rs. 1, 50,000 every year. Not only that, the returns earned & the payout on maturity or death of the insured are also exempt from taxation. 

9. Customization of ULIP plan

10. Nowadays, insurance providers are allowing potential customers to mold a plan according to their needs, income and requirements.. For example, you can choose from different type of premium payment options, such as monthly, quarterly, half-yearly and annually; some companies also offer the option to pay one single premium. Further, you can choose to make partial withdrawals and have your maturity payout paid to you in a lump sum or in one single payment. 

11. These were some of the reasons why you should invest in a ULIP Policy and why such Policy or Plans are suitable for one and all. Speak with an expert and learn just what a ULIP can do for you.