ULIPS Life Insurance
ULIPS is a type of Insurance, which combines the benefits of protection and saving in a single plan. The major advantage that a ULIP has over the traditional wealth creation tools is the benefit of a Life Cover.
A small portion of the money invested goes to securing your life whereas the rest of the money is invested in the market.
Investment risk in investment portfolio is borne by the policy holder. Thus, you should make your investment choice after considering your risk appetite and needs.
Benefits:
- ULIPs inculcate the habit of regular and disciplined savings, which is the key to successful long-term financial planning.
- ULIPs provide the protective benefit of a Life Cover, which keeps your family secure in your absence.
- ULIPs is eligible for deduction from taxable income under Section 80C of the Income Tax Act
- There is a potential of earning higher returns from the power of equity and debt funds.
Features:
- ULIPs are an investment as well as insurance products.
- The typical charges associated with a ULIP include a premium allocation charge, policy administration charge.
- Many ULIPs offer investment strategies such as Systematic Transfer Plans and lifecycle based investing.