We are all concerned for our forthcoming lives – probably, to an extent that we start to ruin the present one. We all have different goals and aims that we wish to achieve in future but the lack of money just forces us to question the same. Life insurance investments like ULIP help in inculcating a saving habit in you. This saving is used to pay the premium amounts and thus getting a policy return at the end of the tenure of the policy. Being long term investments, these ULIP plans help in assuring a monetary return that helps in achieving the future life goals that you have ever been dreaming of.
Through these investments, the premium amount that the investor pays are divided into two different parts. One of these goes for the life cover insurance while the other one goes for the investment purpose. The investor can choose his/her mode of investment. Through ULIP plans one can make an investment into different investment products like equity funds, debt funds or hybrid funds.
If you are yet confused about the ways how these investment plans help in creating wealth for your forthcoming and uncertain future, here are some of the ways that can help you guide through your first ULIP investment –
- Make use of the investment switching option that these plans offer – With ULIP investments, you have the opportunity to switch your investments whenever you wish to. For example, if you have already made an investment into equity funds but now you are finding the investment difficult to cope with due to the high risk involved. You can easily switch your investment to debt funds as they involve a lesser amount of risk. Not just for the risk factor, you can switch your investment for any of the occurring reasons.
- Enjoy the benefit of power of compounding through long term investments – While investing in ULIP, one has to select a lock in period for the same. Usually, the minimum lock in period of the investment is for 5 years. However, when you apply for the investment, you can choose your lock in period which has to be either 5 years or above it. Making long term investments, with lock in periods of 10 – 15 years are considered more beneficial for the investor. The reason for the same is that, your money will grow by getting reinvested in the principal with each passing year.
- Increase your returns through equity funds and enjoy tax benefits – We all know that investing in equity funds can be risky but certainly more profitable than the debt funds. If you have the money and audacity to take the risk, investing your money in the equity funds can be a wiser choice for ensuring better returns from these plans. Moreover, to the benefits, these investments also give you a chance to get tax benefits. Through these tax benefits, your money will not get taxed for the investment that you have made.
These above listed tips can help you get a better amount of monetary return at the end of your policy. When you put your hard earned money into an investment, you surely want assured and expected returns from the plans you are investing in. for the same, there are many ULIP websites that provide you the chance to get an estimate for the amount of return that you will earn at the end of your policy by providing free ULIP calculators. These calculators help you find the returns for your investment. The process further helps you in making the required changes to the investments to ensure better future returns.
How ULIP plans help?
We all save for a better future. However, when these savings give us better returns, they are surely of huge importance. ULIP plans are one such procedure of investment that does not only help you secure your life through the insurance but also helps in getting you positive returns for the investment against your savings.
Here are some of the ways saving your money and investing it in ULIP can be beneficial for an upcoming future,
- Helps in saving money and gathering returns for the future that can further be a source of help for an uncertain future.
- With better returns after the completion of the tenure of the policy, one can think of a better future for his/her children through the adequate amount of money.
- Getting the dream house can be an expensive choice. But, when you have already invested into the ULIP plans, it might not be. You can buy your dream house with the investment returns with no hurdles and burdens.
- Additional to the investment returns, one also gets life cover through the ULIP plans. For the unfortunate times, at the death of the policy holder, one can get different life cover opportunities through the return money.
- Investing in these ULIP plans, in addition to the life cover and investment returns also help in giving you the tax benefits. The investor can save the tax amount through these investments up to 1.5 Lakhs.
Even when your future cannot be certain, it is safe to say that you can make it secure with these ULIP plans.