Juggling between health and wealth goals can feel like a constant life activity. So, have you ever thought about making your investments work double duty? What if you could secure your loved ones' future while growing your wealth at the same time? Well, that's exactly what Unit Linked Insurance Plans (ULIPs) offer.
They are unique financial tools that promote wealth accumulation and are worth opting for. Continue reading about ULIP plans to understand their benefits and explore how they can empower you to make informed choices for your health and wealth.
What is a ULIP Plan?
Imagine an investment plan that provides double safety. That's essentially what a Unit Linked Insurance Plan offers. It's a hybrid financial product that combines life insurance coverage with the potential for market-linked returns. A part of your plan's premium is used as a life cover. Likewise, the remaining amount gets invested in various funds like equity, debt, or a mix of both, based on your chosen plan and risk appetite.
Choosing the Best ULIP Plan
With a plethora of Unit Linked Insurance Plans available, investing in the right one requires careful consideration. Since there are different plans available under ULIPs, here are a few you can explore and make an informed decision:
Equity Funds
If you are seeking potentially high returns, equity funds invest primarily in stocks of listed companies on the stock exchange. While offering the potential for significant growth, remember that equity funds come with higher risk due to market fluctuations. They are best suited for investors with a long-term horizon and a higher risk appetite.
Debt Funds
Prioritising capital preservation and steady income? Debt funds primarily invest in ULIP plans with fixed-income instruments like government bonds, corporate bonds, and debentures. These offer lower risk and potentially lower returns compared to equity funds. They are ideal for investors seeking stability and regular income generation.
Balanced Funds
Here are the ULIP plans that can help you achieve a middle ground between risk and return. Balanced funds, as the name suggests, provide a blend of equity and debt investments.
This helps balance potentially higher returns from equities with the stability of debt instruments. They are suitable for you if you have a moderate risk appetite and a balanced approach to wealth creation.
Other Speciality Funds
Depending on the ULIP plan you choose, you might also encounter specialty funds focusing on specific sectors like infrastructure, technology, or international markets. This offers targeted exposure to particular areas but comes with its own inherent risks and requires careful research before investing.
Why Do People Invest in Unit Linked Insurance Plans?
ULIP returns are the main reason behind their immense popularity. They have several key advantages they offer compared to traditional investment and insurance options. Here's a closer look at these benefits that might interest you:
Protection and Growth
Unlike traditional insurance plans that solely offer life cover, ULIPs provide dual benefits. One part of the premium goes towards providing life insurance that acts as a financial safety net in case of unforeseen circumstances. The remaining amount gets invested in market-linked funds.
This, in turn, gives you the potential for wealth creation and achieving your financial goals. ULIP plans are essentially a two-in-one solution, simplifying your financial planning and potentially saving you money compared to managing separate insurance and investment plans.
Flexibility to Match Your Needs
Life's unpredictable, and your financial goals do change over time. Many Unit Linked Insurance Plans offer flexibility to adapt to your changing needs. This flexibility ensures your plan grows alongside providing peace of mind by ensuring the safety of your loved ones.
Tax Advantages
ULIP returns are available in the form of tax benefits as well, which further enhances their appeal. The premiums that you pay towards your plan are eligible for tax deductions up to a certain limit u/s 80C of the Income Tax Act.
Moreover, under certain conditions, the maturity proceeds can be tax-exempt. This makes ULIPs a tax-efficient way to invest and increase your wealth.
Buy Your Unit Linked Insurance Plan Now!
ULIP plans can be a valuable tool if you are seeking a comprehensive approach to financial planning. Remember, careful research, understanding your risk appetite, and aligning the plan with your financial goals can help you get the best deal. On top of all these factors, it is also essential that you buy it from a reputed and trusted insurance provider like Canara HSBC Life Insurance.
With the leverage of their online tools like the ULIP calculator, Investment calculator, Saving calculator, etc., you can invest in their Invest 4G ULIP plan. They have all the resources and the right offerings for you to make a profitable investment. So, why wait anymore? Buy your Unit Linked Insurance Plan for Canara HSBC Life Insurance today!
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