There are things that you do for a living, and then there are your long-cherished dreams. Yes, those dreams that you hold close to your heart, patiently waiting to realize them one day.
It is these which make you look forward to every day in your life. Right? However, while some dreams require toiling and sweating, some need you to make smart decisions and choices. Since finances play a significant role in realizing almost all goals, one such option that can help you remain financially prepared, along with staying secure is ULIP.
What Exactly is ULIP?
Unit Linked Insurance Plan (ULIP ) is a two-in-one insurance cum investment plan that can help you meet your dual goals of securing your family and realizing your dreams. This is essentially an insurance plan that also offers an added benefit of giving you good returns in the long run. Under this plan, a part of the premium you pay towards your insurance cover is invested in different profitable investment funds.
There is a lock-in period in this plan, which means that you can only make withdrawals after this period is over. However, ULIP also provides you the flexibility to shift your funds from one source to another, if you’re not happy with the returns. This means that you can maximize your earnings by remaining up to date about market fluctuations.
Benefits of ULIP
- Creates a Corpus of Funds
Whether your dream is to send your child abroad for higher studies or to go on a luxurious world tour, you will need an excellent financial corpus to meet with such plans. ULIP by investing a part of your money in different sources like equity, debt, or balanced funds, helps create wealth for you in the long-term.
If you keep your money invested in this plan, long after the lock-in period is also over, you will earn very high returns. That is why remaining disciplined while managing ULIPs is essential to make the most of it. Moreover, unlike a few other plans, this plan has a confirmed maturity benefit, ensuring you that at the end of your plan, you will receive a good amount of accumulated funds. This amount is sure to help you realize your dreams and goals.
- No Compromise on Security
ULIP ensures that in a bid to achieve your dreams, you don’t let your family remain insecure or unprotected.
The insurance part of the plan promises to provide your family with a sum assured after your untimely demise. This will ensure your family’s financial stability in the absence of the prime breadwinner. The amount provided to your loved ones will equal the sum assured by the insurer or the fund value or 105% of all premiums paid, whichever is higher of the three.
This insurance cover will ensure that your loved ones do not have to face a financial crisis after your demise.
- Maximize Your Savings
Some of you do not have concrete goals or dreams, though, but you want to save enough not to be short of funds. From saving enough for your post-retirement days to meeting with spontaneous plans, ULIPs ensure that you’re able to maximize your savings systematically.
Moreover, the tax benefits attached to this plan make it an even more lucrative investment option. Premium paid on such a plan is deducted from your taxable income, which means it brings down your tax liability in every financial year. You can use these savings for achieving those small dreams that you may otherwise be unable to save for.
- Meet with Sudden Financial Needs
ULIP is although a long-term investment plan, that comes with a lock-in period. However, once the lock-in period is over, then this plan offers you the flexibility of partial withdrawal. This means you can partially withdraw money to meet with any immediate situation. In the absence of such a plan, you may have to let go of your dreams or postpone their realization. However, this plan ensures that instead of exiting ULIPs and using all your invested money, you can use up some money, while maintaining the rest of your funds. Usually, two partial withdrawals are permitted.
Invest in ULIPs and Realize All Your Dreams
All the benefits offered by a single integrated plan such as ULIP make it just the right plan for you, in achieving your various dreams. Buying the best ULIP plan may be the perfect bridge to reach your goals. So, gift your family security coupled with a smart way to realize all plans, big and small. The sum of money you receive in the end will be a perfect reward for the planner and investor in you.
Don’t let your dreams remain unrealized because of financial constraints. Look for best ULIP plan in India and buy it at the earliest. Then, enjoy the many benefits of ULIP.