Friday, May 24

How flexible are Unit Linked Insurance Plans?

Unit Linked Insurance plans are a form of insurance policy that comes with dual benefits. They are both a life cover for your family’s financial protection after your untimely demise and a great investment. So, it can help you fulfill all your long-term objectives with ease and peace of mind. By making regular premium payments, you can experience a solid financial future for your family in need. 

The premium that is paid in this form of insurance plan is classified into two different segments. One half is invested in your life cover, while the other is to serve your long-term goals. That is why ULIPs act as a great investment with high flexibility. 

If you want to know how else this plan is famous for its flexibility, continue to read below. 

1. Choose Options As Per Your Risk Appetite

Unit Linked Insurance plans lets you avail a range of fund options. Accordingly, you have the liberty to choose from diverse investment options that range from medium, low, to high-cost investment choices. Make sure you opt for one as per your own risk appetite. 

Apart from this, ULIPs also let you opt for either a premium or a sum assured based on your requirements. With this, you can work towards improving your investment portfolio using top-ups. 

2. Potential Tax Benefits 

A Unit Linked Insurance plan allows you to save sufficient amounts of money. But that is not all. Now, you can save taxes, too, under the Income Tax Act 1961. This means that you can leverage tax benefits at diverse life stages.

Stage 1- This is the entry benefit, where the tax benefits are available on premium payments. 

Stage 2- This is the exclusive switching benefit wherein the policyholder can make tax-free debt-equity switches. 

Stage 3- This is the exit benefit wherein a tax-free maturity benefit can be enjoyed by the policyholder. However, this is subject to Section 10 (10D) conditions. So, you must go through them carefully. In case of any queries, do not hesitate to get in touch with your policy provider either. 

3. Good Liquidity Options

During your policy tenure, if you want to make partial withdrawals, you can do that too. Now, ULIPs let you leverage that and allow you to handle your expenses with utmost ease. So, in case of an emergency where you are facing a severe financial crunch, you can make the most of this benefit. In case of events like your child’s education, medical emergencies, or taking a trip, you can fall back on ULIP’s great liquidity options to make partial withdrawals.

4. Choose From A Host Of Investments 

Another great benefit of Unit Linked Insurance Plans is that they offer a plethora of investment options to choose from. These may include Balanced Funds, Equity Funds, and Debt Funds. By learning about each of their features and benefits, you can choose one that suits your requirements best. During this time, it is essential for you to consider your risk tolerance too. So, you can make a safe investment choice that renders the utmost convenience in the long run.

5. Plan As Per Your Set Goal

Your goals can either be to cater to your long-term objectives or receive a life cover for your family’s financial future after your untimely demise. Thankfully, ULIPs allow you to choose from them so you can make flexible investments accordingly. This way, you can plan as per your goals and fulfill them in no time without any hindrances. So, whether your goal is to save for retirement or your child’s future, you can now forge ahead to fulfill all of them. 

Purchase Your Unit Linked Insurance Plan Today!

Flexibility is important for all of us when dealing with financial choices. Thankfully, this insurance plan lets you do that without any second guesses. So, if you are planning to purchase a Unit Linked Insurance plan any time soon, speak to your insurance provider right away. Consult them to resolve your queries regarding other flexibility options there may be. 

You can also confirm your premium details and other information about your financial coverage. They will help you out as per your requirements. In fact, the right insurance providers can also help you make mindful choices amidst a range of investment options offered under this plan.