ULIP Is The Best Option If You Want To Build Wealth Through Investment


If you want to build wealth through investments in the long run, then ULIPs are a good option in front of you. In this, you get the benefit of insurance as well as tax exemption. It will also provide additional benefits like waiver and freedom to withdraw the policy amount in installments even after maturity.

Hyderabad: Equity is the best investment plan to build wealth in the long term. Under this you also get many benefits. In this, Unit-Linked Investment Policies (ULIPs) are the best option for dual benefit seekers. However, people avoid investing in such policies when the market is unstable. But they have to keep in mind that there is no fixed time to enter the market. It is discipline and long-term planning, which brings returns irrespective of risk factors, market downturn and financial stress.

Apart from investment, insurance and tax exemption, ULIPs are also offering some other benefits. Policyholders are given the freedom to choose any fund suitable for their investment and protection plans. Apart from this, insurance companies are also providing flexibility by offering free switching facility. Over the course of their existing policies, policyholders can switch and adopt new investment plans to enhance returns. One time benefit can be availed on the maturity of the policies. Or else, income can be earned for a specified period after the policy is discontinued.

ULIPs will help in increasing one’s wealth by making premiums per month or quarterly or half yearly from time to time. Premium can be fixed on the basis of income and other expenses. Paying premiums in a disciplined manner under ULIPs will yield good returns. After the maturity of the ULIP, the policyholder is given the freedom to either claim the policy amount in a lump sum or withdraw it in installments. This investment can be continued in the market even after maturity and will continue to generate income. This way you can get higher returns.

If we want to get assured returns, then we should continue to invest over the long term. ULIPs are generally long term plans. Hence, these will help in countering short-term volatility. As a result, we get an opportunity to reduce the risk factor that comes with market volatility and financial volatility.

A life insurance policy should be taken to ensure the safety of your entire family. At the same time, efforts should be made to create a stable income source for the family members. There should be easily understandable financial plans for the family. ULIPs are the most suitable policies for them. You must not forget the protection that always comes with a proper insurance policy apart from other benefits.

Apart from other benefits, ULIPs also offer the benefit of claiming income tax exemption. Premiums paid under ULIPs are eligible for exemption. 1.50 lakh under section 80C of the Income Tax Act 1961. Till you can get discount. The benefits received under ULIPs are also eligible for tax exemption under section 10(10D) of the IT Act.

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