As the economy kick-starts post the lockdown, it is an opportune time to look for investments and insurances to secure your future. It is a great idea to zero in on a policy that offers you the benefits of insurance while letting you grow your money. A ULIP plan not only gives you the advantage of both investment and life insurance but also lets you save tax.
However, before plunging into investing in a ULIP, make sure you understand how it works and what are its various components. This can help you utilise the features of this investment product to meet your financial goals in tune with your risk appetite as well as get adequate protection for life. Let us take a look at how a ULIP is structured to get a better idea.
ULIPs are market-linked products that invest the premium paid by you across varied funds ranging from equity to debt as well as balanced in tune with your risk profile. Each policyholder is allocated units in accordance with the amount invested by them. You can switch between these funds in accordance with the risk you are willing to take.
Upon maturity, the total value of all units spread across various fund choices made by the investor during policy term is paid out. In the event of the death of the policyholder, the nominee receives the death benefit which may either be the fund value, sum assured, a combination of both or 105% of the premiums paid till the time of death.
A part of the premium of your ULIP plan is also invested towards providing a risk cover for your life in the form of life insurance. ULIPs also come with a 5 year lock-in period which makes them a long term investment. However, even before the premium is directed towards investment and insurance it is adjusted for charges as mentioned in the policy purchased by you. Here are a few:
Despite all these deductions, a ULIP is a preferred investment choice that provides you the benefit of life insurance along with investment and tax-saving. Invest 4G plan from Canara HSBC Oriental Bank of Commerce Life Insurance allows you the choice of 7 different funds in tune with your risk appetite to grow your wealth. Or choose from 4 portfolio strategies to streamline your investments.
Give a fillip to your savings with loyalty additions and wealth boosters as you save tax on premium paid as well as maturity proceeds. Whether it is creating a retirement corpus, building a fund for your children’s’ education or simply wealth creation for your life goals, a ULIP is a perfect investment choice. Start saving today and see your money grow over the years when you invest in a Unit Linked Investment Plan.
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