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Understand the Benefits One Gets With A Robust ULIP Plan

A unit-linked insurance plan (ULIP) is a plan that provides the benefits of life cover as well as investment. Therefore, by purchasing this policy, a person can secure his/her family and earn good returns.

If you want to know more about the benefits of a ULIP, then read this article.

Many people look for plans that can financially secure their family. One of the best policies that can help them achieve this goal is a ULIP.

A ULIP is a unique product that offers dual benefits. It provides the benefits of insurance and investment. When a person invests in a ULIP, a part of the premium is invested in life cover, and the remaining amount is invested in various investment instruments, like debt funds, equity funds, etc.

Thus, ULIPs are a great option for building wealth and ensuring financial protection. The insurer can provide a sum assured to the policyholder’s family in case of an unfortunate event. Furthermore, the investment allows the insured person to earn good returns. Hence, helping the policyholder build a significant financial corpus. Also, purchasing this plan has become very easy. A person can easily buy a ULIP plan online effortlessly.

Here are some of the benefits of a ULIP-

  • It Can Provide Investment Returns

There are various equity and debt fund options in ULIPs. Thus, a person can choose the funds based on his/her financial requirements and risk appetite. For instance, if an individual has a high-risk appetite, then he/she should consider investing in equity funds.

  • It Can Provide Life Cover

While accumulating funds for achieving life goals is important, every person should also look for options that can ensure the financial security of their family. A ULIP can help a person earn returns and provide life cover.

Thus, if the policyholder passes away during the tenure of the policy, then the insurer can provide a sum assured to his/her beneficiaries. Therefore, the sum assured can help them meet their life goals.

  • It Offers Flexibility

As ULIPs allow individuals to invest in market-linked options, they can earn higher returns. A person can choose between high, medium, and low-risk investment options in the same ULIP. Furthermore, there are ULIPs that allow people to switch between assets based on their risk appetite. This can help people maximise their returns.

  • It Offers Tax Benefits

The premium paid to purchase a ULIP can be claimed as a tax deduction under Section 80C up to Rs. 1.5 Lakh. Hence, with the help of such a plan, the policyholder can also save on taxes.

  • It Offers Add-Ons

Add-ons are additional benefits that a person can purchase by paying additional premiums. They can enhance security. For example, an accidental add-on can provide financial protection in case the policyholder meets with an accident.

A unit-linked insurance plan is a great option for people who want to provide their family with financial protection. Furthermore, by investing in a ULIP, a person can earn good returns. Thus, with the help of a ULIP, an individual can financially secure his/her family and build a corpus.

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