Wondering which is the best savings plan for you? We can answer this for you. ULIP, abbreviated as Unit Linked Insurance Plan, is a combination of investment and insurance that provides you with dual benefits - both savings and protection. In this plan, one part of the premium goes to the savings, while the other goes to the investment scheme.
Five Ways to Optimize your Returns In ULIPs
By investing in the right plan, you can get the best returns in ULIPs. This is because while standard insurance policies promise you returns of 4% and 5%, ULIPs can give you returns of double-digit values if you know how to do them right.
1. Switching between equity and debt
One important feature of ULIP is that it enables its investors to switch between equity and debt. ULIPs offer a great feature in which you can switch your investment between equity and debt. To gain the most ULIP return out of these plans, utilize the switching option well.
When the markets are stooping low, you can switch your funds to equities, and when they are soaring high, transfer them to debt. In your total investment period, let us say 20 years, you can implement this method 2-3 times.
2. Stay in for the long haul
The standard lock-in period for a ULIP is five years. Although this may seem like a long enough period, you are advised to invest for longer periods. The longer you stay in a ULIP, the better the powers of compounding will work.
|FUNDS||AVERAGE RETURNS (%)||MAXIMUM RETURNS (%)|
|Large Cap Equity||9.57||15.18|
|Mid and Small-cap Equity Funds||16.81||24.43|
|Short Term Bonds||6.6||7.87|
|Long term Bonds||6.59||7.89|
The above table was the result of the research conducted by Morningstar India. This data shows the returns provided by the different ULIPs in the past year.
3. Equity funds and tax benefits
By investing in equity funds, you can obtain the EEE tax benefits. What does this mean? This implies that one can avail income tax exemption of the capital, interest, and maturity by investing in ULIPs.
4. Consider your life stage needs
The risks you take should depend on the age at which you are investing. You should keep in mind that equity funds are riskier than debt funds, so as your financial responsibilities grow, you should consider switching to the latter.
5. Slow and steady
If you are investing in any long-term plan, you should have a disciplined approach to it. As ULIPs have a minimum lock-in period of five years, it is advised that you commit to it only if you are ready for long-term investments. But consider this too - the longer you invest in a ULIP, the better will be your ULIP return.
By investing in the best ULIP return plan with high benefits and following these pointers, you can be assured of a great investment ahead of you.
Four Benefits of Investing In a ULIP
When you invest in the best ULIP return plan, you get the following benefits:
1. Protection, Investment, and Savings
As explained earlier, ULIP provides you with double benefits - by investing in ULIP, you can both save and invest simultaneously. Both of these elements assist you immensely in building your wealth in the long term. You need not panic about investing in an independent firm because ULIP provides you an insurance cover.
2. Returns based on the market
As we know that a part of your premium in ULIPs goes for investment in the market, its fluctuation will affect your returns. By buying the best ULIP return plan from Canara HSBC Life Insurance, one can optimize their returns from the changes occurring in the market.
3. Long-term gains
One notable benefit of ULIP is the benefits you acquire when you invest in long-term plans. These plans are recommended to those who wish to make the maximum out of an investment in the long run.
By investing in a ULIP, you not only make the maximum returns, but you also get insurance cover. The investor can choose the insurance plan at their convenience. This benefit of ULIP is remarkable because it provides the investor's family with security in case there is some emergency.
Why should you Invest in the Invest 4G Plan?
Invest 4G by Canara HSBC Life Insurance is a ULIP that allows its investors to customize the plan as per their needs and goals. Providing you with high flexibility and a wide variety of Portfolio Management Options, Invest 4G also offers you an Insurance Cover for the family in case of the policyholder's untimely demise.
With its assured loyalty additions and limited premium payment, you can invest in this long-term plan and reap excellent rewards. Some of its benefits are:
1. Three different cover options to choose from as per your life stage
2. A range of 8 funds from which you can opt for the one you want
3. Flexibility in paying for the entire policy term or limited years or as only once
4. Systematic Withdrawal and Milestone Withdrawal for different situations
While utilized rightly, ULIPs tend to provide the best return rates. ULIPs are the best type of investment for people with long-term goals as they give you both security and growth. Canara HSBC Life Insurance offers you the best ULIP plan with high returns. By investing in it, you can reap numerous benefits, be it short-term or long-term.