APN News

  • Tuesday, June, 2020| Today's Market | Current Time: 07:43:48
  • Plan your investments with ULIP for upcoming financial New Year

    Published on January 24, 2019

    Even when we say live in present, we continuously think about our future. All of us are planning for a better and brighter future. We all have some short term future goals and some long term future goals. Short term future goals might only involve things of trivial importance like buying a new phone etc. while, on the other hand, long term goals comprise of things of better concern like, future education, buying a new house etc.

    Short term future goals do not require a lot of planning but making your long term dreams come true require a planning. Making an investment for the same is something that helps people a lot. ULIP Plansare one such form of investment that helps the people in achieving their long term goals. These instruments are one of the best ways for making an investment as a part of the premium amount goes for life insurance while another fraction of the amount goes for making an investment. One can make an investment to different products like equity or debts depending upon the need of the policyholder.

    If you are also looking for an investment plan ULIP can be the appropriate choice for you. Here are some of the reasons that help you get a clear view of why you should start your New Year with ULIP investment now.

    Allows you to maximize the return on your investment

    This process of investment gives you a chance to maximize your return depending on your risk taking ability. If you are a low risk taker, you can invest in debt funds, while, if you are high risk taker equity funds are more suited for you. If you want, you can also choose to invest in balanced funds which range between equity funds and debt funds. Additionally, the process of investment, also gives the investor a chance to switch the investments for free for a certain amount of time. If you analyze more amount of profit in debt funds while you have already invested in equity funds, you can switch your investment. However, there is only a limited amount of free switches that the plan provides you. Through this facility of switching the investments, one can choose the best return investment and can maximize the return as per the market conditions.

    You can be sure about the Returns

    We all invest for future purposes; in that case, if your investment is not giving you the expected returns, it is of no worth. With the lock in period of 15 to 20 years, ULIP tends to offer 8.5% to 15% as the returns on the investments. These returns also depend on the category of the ULIP fund that is, whether you are investing in a balanced fund, equity fund or a debt fund. The amounts of returns are quite close what you get by investing in Mutual Funds. Hence, this becomes another reason for why investing in ULIP Plans can be beneficial for your long term goals.

    You get the life cover

    As listed above, ULIP performance ensures your life insurance in addition to your future monetary investment. ULIP Plans of investment are offered by the life insurance companies fulfilling both your needs to an utmost extent. Though, it must be kept in mind that the life cover provided by these plans may not come with as higher results as in life terms but there surely is life cover involved in the ULIP Plans. Life can certainly not be predicted and one can come across any difficulty at any time. In case of a sudden demise of the policyholder, the beneficiary gets the lump sum amount of the policy without leaving you family and children with no future.

    Allows you the tax benefits

    The investment plans do not just offer you the life cover and investment returns, but, they also allow you tax benefits. Not all the investment plans offer the facility of tax benefits but ULIP Plansdo provide the same as they are not just investments but are also comprised of life insurance. This becomes the reason for the plans to offer the tax benefits to the policyholders and investors.

    How to plan your investments with ULIP investment plans?

    Now that you know why you should invest in these plans, you must definitely be wondering how they can help you to achieve your dreamlike long term future goals.

    Investing in ULIP can help in,

    1. Getting a house or car of your dreams
    2. Expanding or starting your own new business
    3. Collecting the funds for your child’s marriage
    4. Funding your child’s future education
    5. Increasing your future wealth and securing your future

    Followed by these benefits are various number of other benefits as well that you can achieve through these investment plans. If not anything, this way of investing in the ULIP Plans are beneficial for the forthcoming life as you can use the money for securing your future and not just leaving it in the hands of the fate. More than your life, you can also be sure about the life of your loved ones, as the plans also secure you for the times when you cannot fight the fate by providing the life cover insurance.