Unit-Linked Insurance Plan [ULIP] which gained popularity post 2008 has set a benchmark for other insurance plans. Being a long term product, it offers dual benefits of insurance and investment under a single product. Moreover, when it comes to protecting your family needs, ULIPs make sure that it leaves no stones unturned.
With an array of features and options, ULIPs can simply meet the requirements of an investor based on his risk appetite and fund allocation. With the stabilization of markets, it allows an investor to yield higher ULIP returns. If you’re someone looking to garner better gains, then go through these 4 tips that will help you increase your returns immediately:
Four things you should try in order to increase your ULIP returns
1. Purchasing a ULIP Policy online
Today, purchasing a ULIP Plan online has become much easier as compared to offline purchase. If you are well versed with market fluctuation, then you can choose the best plan with maximum ULIP benefits with ease.
Online investment in a ULIP Policy will let you use internet based tools in order to keep a track on the market trends. Moreover, you can enjoy the benefits of zero premium allocation as well as policy administration charges. If you invest in an online ULIP, the premium allocation charge can vary up to 20%.
2. Attaining a balance between low-cost investment and high returns
When you invest in a ULIP Policy, keep your focus on the performance and the amount that you have invested in. Don’t be attracted to low cost investments easily and jeopardize the returns that’ll be coming your way.
In order to gain success in ULIPs, it is important to strike a balance between low-cost investment and high returns. The best way to do so is by investing in it at an early stage of life. That way, you’ll not only invest a smaller amount but also reap higher returns. Besides, you can invest in low cost ULIPs at the age of 50 without losing all your money to high mortality charge.
3. Making a long time investment
ULIP Policies require an incredible amount of patience similar to your investment in mutual funds. This is simply because of the policy term of ULIPs is over 12-15 years.
Before you invest in a ULIP Policy, stay updated on the market trends revolving around equity funds as well as debt funds. Keeping a track on these updates will allow you to minimize the risk and maximize your profits. Besides, you avail a lock-in period of 5 years in order to invest a smaller sum for longer run.
4. Opting for a highly valued life cover
A life cover protects your family in the times of need, even without your presence. Hence, opt for a ULIP Policy that comes with a highly valued life cover.
When investing in ULIPs, keep in mind that choosing a life cover which is 10 times of your annual premium is a must. This will help you to avail tax benefits provided by ULIP in the form of tax deductions. Opting for a tax saving plan helps you to avail a tax deduction up to 1.5 Lakhs under section 80C.
One thing that you need to remember is that you need both your time and money in order to gain higher returns. With the right ULIP Plan and the right funds, you’ll surely earn enough in order to fulfill the needs of your family.