Benefits of ULIPs | Fusion - WeRIndia

Benefits of ULIPs

Benefits of ULIPs

ULIP or Unit Linked Insurance Plan is one of the best insurance schemes. It gives dual benefits by providing both insurance and investment

The investors are allowed to invest a part of the premium in the chosen fund, under the scheme and the remaining amount to get effective life insurance cover.

That’s why ULIPs became the choice of many investors.

ULIPs have different benefits. They are mentioned as below:

ULIPs provide flexibility. You can switch between various funds like equities or debt funds as per your choice. Furthermore, considering the market condition and risk, you will have the authority of choosing your desire fund option.

As ULIP mainly comes under life insurance, it offers tax benefits by way of tax free maturity amount. The tax benefits primarily depend on the type of investment you make. However, equity funds can be taxed at the rate of 15 percent in some specific conditions.

ULIPs are ideally a good choice as a long-term investment option. The more the lock-in period, the higher the returns you get. Hence, you can increase your lock-in period to yield more returns.

As already said, ULIP is a combination of both investment and insurance. Hence, you can have the option of choosing best investment according to the market situation in addition to getting a life coverage. Irrespective of your investment option, you will have a life coverage. That way, it satisfies both your investment needs as well as insurance needs.

Though ULIPs have some charges, they are low compared to their yielding.

Considering all the above benefits, ULIPs are one of the best investments for long-term with good returns along with flexibility and life-time insurance cover.

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