Unit linked insurance plans generally known as ULIP plans are the perfect choice for investors who wish to put their money in plans which allow them a long-term investment with a good amount of protection. Apart from other options of investment such asthe health covers, term insurance or pension policies, you can explore the ULIP for a better investment experience.
Here are a few advantages, which are offered by ULIPs –
- Non rigid investments –
ULIPs do not comprise of a strictly formed rulebook with solid characteristics. They rather provide a flexible option for every size of investment as well as risk appetite. The invested amount can be higher, lower or might have a medium capital, and the same goes in case of the risk tolerance capacity of the investor. The ULIP calculator takes care of your requirements and offers you a plan, which suits you and your purpose in the best manner. The ULIPs also offer the convenience of gliding the capital of the investors from one policy to another without subjecting any additional charges on the amount. There are twelve transitions allowed in one economic year. There is also a provision of top-ups which helps the investors in increasing their investment portfolios to a considerable level and gives them an exposure to more investment opportunities.
- A translucent vision
In the case of ULIPs, all the statistics of your invested capital is shared with you in translucent conduct. From the charge configuration and return tariff, the maturing dates and other vital information, the whole thing is brought to your observation without any concealed terms or policies. An annual account statement is released with quarterly investment portfolios and daily NAV so that you can have access to any detail related to your money.
- Options for withdrawal
If there is an occurrence of anyunexpected state of affairs or emergency, you do not need to take stress about your money being sheltered in the plan. The ULIPs permit investors to pull out their capitalmoderately. Also, after the first five years of the investment are completed, the ULIPs warrant you to extract funds from accounts linked with your unit insurance policy.
- Regular savings
ULIPs enable you to save money in regular order and fashion. This infuses a very healthy habit of savings in an individual and buildsstrong security for your upcomingventures and a steadfastback up for any unforeseenhappening, which might sneak up in future.
- Tax benefits
When you invest your money in the ULIPs, you are not accountableforpaying any tax on your premiums as per Section 80 C. This saves a considerable amount of money in the extended run and adds to the possible advantages of saving through the ULIPs.
ULIPs also provide security to the investors, along with all the above stated benefits. There isa plethora of ULIP plans in India which can assist you in investing your money and get the best out of it. With appropriatesupervision and expert guidance, you can select the best ULIP planfor your investments.