A Unit Linked Insurance Plan (ULIP) can help you fulfil a wide slew of long-term investment objectives, be it retirement planning, meeting the cost of your child’s education or wealth and asset creation. The minimum lock-in period of 5 years ensures investor’s discipline along with generating good, market-linked returns. The key highlight of best ULIP is that these provide you with life cover, while a portion of the premium paid is invested in debt, equity or balanced funds. So along with boosting your income and helping you in realising your long-term investment objectives, ULIPs provide financial security to your family, even if you are not around. The dual benefits of both market-linked returns and a life insurance policy have made it among the most popular investment instruments in the market.
Expected wealth generation from ULIPs in 10 years: According to industry experts, you must stay invested in these schemes for a long-term period– typically for 10 years or more. Over a long-term, ULIPs are expected to generate returns ranging from 10% to 12%. The returns from the best ULIP are better than other market instruments like, Equity Linked Savings Schemes (ELSS), fixed deposits and tax-saving funds. ULIPs also provide better returns as compared to government-backed investment instruments, like National Savings Certificate (NSC) and Public Provident Fund (PPF). Inflationary trends can also negatively impact your returns over long-term. The best ULIP, however, can beat inflation.
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The best ULIP are equipped with several key features that will allow you to create wealth over an investment horizon of 10 years or more. These include:
Charges on ULIPs: Depending upon your policy, various charges can be levied on ULIPs. These include administrative charges, fund management charges, switch charges, premium allocation charge, partial withdrawal charges and surrender charges. The charges on the best ULIP are, however, transparent.
Conclusion: Thus, you can fulfil your objective of wealth creation over an investment horizon of 10 years by investing in the best ULIP. You can select the Invest 4G plan from Canara HSBC Life Insurance, which allows you to create wealth along with the benefit of providing life cover. The plan is equipped with key benefits, like return of mortality charges, loyalty additions and wealth boosters. You can also choose to receive maturity benefits through the settlement option in instalments or according to the frequency selected by you, over a maximum period of 5 years.