ULIP investment plan helps increase wealth exponentially
Tax-free Investments | Top-rated funds across industry | Zero Allocation Charges
Unit-linked Insurance Plans or ULIPs are marked linked plans which dynamically offer insurance and investment. Its insurance with dynamic investment option as it is linked with market funds also gives option between choosing from equity, debt, balanced funds based on one’s risk appetite. Be it Wealth creation, planning for children education/marriage or securing your post retirement years, ULIP variants are available.
ULIP has traveled long way since its first launched in 2005 at India. When it started charges where little on higher side, however second generation ULIPs are much cheaper charges are as low as 1.35%* in few available ULIPs in market. IRDA in 2010 has also capped the aggregate charges at 2.25%. Few ULIPs are cheaper than mutual funds and they come with life cover too. In the recent news few insurance companies have launched ULIPs with life cover with no mortality charge that is life cover is given to insured without any charges.
Under section 80C, you can claim deductions equivalent to the premium amount paid on Safebima ULIPs as life insurance or under 80CCC as pension up to a permissible limit. This limit is currently set at Rs 1.5 Lakh. You can avail this deduction on the premium amount up to 10 % of the sum assured with a ceiling of Rs.1.5 Lakh. You can also claim all the charges collected by the insurer such as service charge as a deduction.
Moreover, the amount you receive as partial withdrawal / at maturity of the ULIPs is tax-free under section 10(10D) of the Income Tax Act, 1961. The death benefit payout upon death of the policyholder is also exempt from tax.
Premium allocation charge
Policy administration charge
Fund management charges
Fund discontinuation charge
Fund switching charge
Invest in a ULIP retirement plan to prepare yourself for a secured life post-retirement. Under this plan, an individual pays the premium during the tenure of his/her employment.
This premium is divided into two parts – one part goes towards your life insurance cover and the other part is invested in an instrument of your choice. This small amount that you periodically invest builds a corpus which you can use after retirement.
With a ULIP child plan, you take a step towards securing your child’s future. Whether it’s your child’s education, marriage or any other important event, this plan helps you to stay financially secure. A child ULIP plan also offers life insurance cover for your child. This way, you can protect your child against any unforeseen situations and ensure they realize all their dreams.
Your earnings today might not be adequate tomorrow. Moreover, high inflation rates and constantly rising prices of commodities can eat away your savings. Therefore, it is necessary to invest today to secure your future! A ULIP investment plan can help you achieve your goals of long-term wealth creation and security for your family. What’s more? Your investment in ULIPs, as well as returns on maturity, are completely tax-free!
Choose an appropriate life cover wisely keeping your needs and liabilities in mind, your sum assured should be sufficient to take care of all your liabilities in longer term.
It provides you with desirable results only when bought for longer durations as the product charges are higher in the first few years.
Never forget to educate yourself about the charges incurred in ULIPs,Choose your fund options carefully keeping your risk appetite in mind.Check for the switching option carefully knowing the number of free switches etc. throughout the policy term.
Please note that the information provided is collected from insurers online sources and other publicly available resources & which we believe to be reliable. Safebima.com doesn't warrant the accuracy, reliability & absoluteness of information provided on the website. Participation by site visitors or registered customers is on a voluntary basis. The policies are offered by various life Insurance & non-life insurance offering companies and thepolicymart.com does not seek to, either directly or indirectly, advise, offer, solicit or recommend that any person who is or proposes to become its member should purchase the Policy.