One of the first concerns most people have when they begin earning is whether it is more worthwhile to invest their money into generating higher returns or whether they should first safeguard themselves and their money through a life insurance policy.
Unit Linked Insurance Plans (ULIPs) are fast growing in popularity owing to their ability to serve both purposes. A ULIP acts both as an insurance product while also being an investment instrument which can help you earn significant returns. For instance, you can opt for the Invest4G Plan, available on Canara HSBC, which offers a range of benefits. You can easily opt from between 7 different funds and 4 portfolio strategies in accordance with market conditions, and ensure that you are always on top of the market curve in terms of returns.
What makes this instrument even more viable are the ULIP tax benefits that apply and help you save on taxes. Most investment instruments are structured to help you save taxes, but with a ULIP you are earning a high amount of benefits while also saving taxes. This makes ULIPs ideal for everyone, right from a person who has newly begun working or someone in their 40s who is beginning to start saving for their retirement. ULIPs are also a great way to save up for a particular purpose. Since they come with a lock-in period, usually of 5 years, ULIPs are a great way to save up for a family holiday, or even if you want to save up for your children’s education or wedding plans. With the Invest4G Plan, offered by Canara HSBC, you can easily earn high returns through a choice of 7 different funds and 4 portfolio strategies. Its versatility as a life insurance policy also lets you earn the Mortality Charge upon maturity of the fund.
The tax benefits offered by the government on ULIPs are among the best benefits available on any type of investment instrument under the Income Tax Act, 1961. Read on to learn more about ULIP tax benefits.
However, even though your ULIP allows you a range of tax benefits, there are several considerations you need to keep in mind to get these benefits. In order to claim the benefits under Section 80C of the Income Tax Act, 1961, your ULIP fund needs to stay locked in for a period of at least 2 years. This means that to get the tax benefits, you need to have been regularly paying premiums for a period of 2 years to be eligible for these benefits. If you had received any tax deductions for your ULIP investments in the previous years, it will be added back to your income in the year you close the ULIP.
In order to ensure that you have the highest returns, while also receiving the ULIP tax benefits, make sure to opt for the Invest4G, available on Canara HSBC Life Insurance. Not only can you flexibly switch between 7 different funds and 4 portfolio strategies, you can also partially withdraw funds to meet any unexpected financial emergencies that may creep up.