There comes a point in life where, financial planning becomes absolute essential to ensuring that your financial future is secured. Today, there are various financial products available in the market, which makes it increasingly difficult to pick one particular product. However, if you have your short-term and long-term goals in place, then financial planning will not be difficult.
Once your goals are in place, then making an investment or purchasing an insurance plan becomes easier. While you are researching on which plan to purchase, the Unit Linked Insurance Policy (ULIP) will seem like your best bet. The ULIP policy will bring with it tons of benefits, as compared to the other plans or insurances. In this article, let’s take a look are some of the benefits that come with ULIP.
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Dual advantage in a single ULIP investment:
One of the many benefits that an ULIP investment bring is dual advantage of insurance as well as investment. So, when you purchase an ULIP plan, not only do you pay premium for life insurance protection, you also invest in funds according to your choice, invariably. This offers additional guarantee and protection to your finances.
Wide choice for investments:
Another benefit of an ULIP investment is that it offers you an array of investment options, depending on your risk appetite.
So, if you are a low risk-taker then, you have debt funds to invest in
If you are moderate risk-taker then, you have balanced funds to invest in
If you are a high-risk taker then, you can have equity funds to invest in
In this way, you can experience the perks and ULIP returns with having invested a huge amount. Once you are comfortable with this investment then, you can invest more.
As a life insurance, ULIP offers tax exemption on the payable premiums. These tax benefits are offered under Section 80C up to Rs 1.5 lakhs of premium paid. The exemption extends to all maturity payouts received under Section 10D of the Income Tax Act, 1961. This will also allow to save and grow your financial corpse. Unlike other alternative investments, there is no impact on long term capital gains tax on the ULIP plan. This makes ULIP an apt insurance to have when it comes to tax exemption.
Apart from these, are several other ULIP benefits that make this an ideal investment option for both –short-term and long-term financial goals. So, if you want to avail market-linked growth and benefit of life risk-cover, ULIP is an excellent option to explore.