What is a unit-linked insurance plan?
A unit-linked insurance plan is a credible option that gives you dual benefits. These plans combine features of both insurance and investment products. ULIPs are long-term investment products focused on helping investors to save money over their service tenure for a future goal while providing insurance coverage.
Insurance plus investment scheme:
Insurance plus investment plans are credible options wherein you can combine savings and insurance with a single premium. The plan comes with a 5-year lock-in period. The premium amount is partly channelized towards insurance and partly towards the savings as investment thereby enabling financial discipline through regular investments.
Why invest in ULIPS?
If you are looking for ways to invest and grow your money faster, opt for ULIPS. Using this option, you can systematically save money, and get reasonable returns and good tax benefits. There are a lot of investment products in the market that offers attractive returns, but ULIPs can help you save while availing yourself of a life cover, thus protecting your loved ones financially.
Types of unit-linked insurance plans:
Child ULIPs: With this plan, you can make long-term investments and financially secure your child’s future while saving for his/her education or marriage.Â
Wealth creation plans: Wealth creation plans provide guaranteed returns through sum assured along with accrued bonus enabling you to secure your financial future.
Retirement planning ULIPs: These plans are ideal options for people who want to create a corpus for their retirement during their service tenure.
Tax benefits of Investment cum Insurance:
The Unit-linked insurance plans offer tax benefits in the form of tax deduction, thereby reducing your taxable income and tax outgo. As per Section 10(10D) of the Income Tax Act, 1961 the maturity amount and the accrued bonus is completely tax-free. Also, the sum assured paid during the policy tenure is completely free from taxes.