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In this policy, the investment risks in the investment portfolio is borne by the policyholder
The workforce is only growing in India, and the majority of it comprises millennial. The demand for insurance is also growing along with India’s workforce. With the advent of new technology and fresh thinking, comes innovation in investing. With a great demand for tailor-made investment plans, India’s insurers are creating schemes to meet the demands of this segment among other retail investors. As a substantial portion of the Indian population comprises the youth, with a high disposable income compared to previous generations, professionals are always looking for savvy ways to invest. Investing in ULIPs or unit linked insurance plans is emerging as a favorable way to allocate capital to insurance as well as investment. The flexible nature and high tax perks of such plans attract young salaried professionals from all employment sectors today.
ULIPs can be incorporated in a range of investment portfolios. They have the unique ability to help save your capital, and also build it in a systematic way. Probably, the appeal of a ULIP stands out because it ensures life coverage. The investment component just enhances this and if you haven’t invested in a plan yet, you’re about to find out why you should invest quickly.
A ULIP or a unit linked insurance plan is quite a unique plan. A typical ULIP has two components - an investment instrument and life insurance coverage. For any regular insurance plans, you have to pay premiums that go towards the cover offered by your plan. You must pay premiums with ULIPs too. However, a part of your premium goes into investment in funds of debt or equity, and the other part gets allocated to insurance cover. For the investment in funds, you have a say in choosing funds, as a policyholder. Investing in ULIPs is a great way to diversify any financial portfolio. It also helps young investors to make prudent investment choices and think about goal-based investment.
After reading how ULIPs can help fulfill financial goals, you’ve probably guessed their benefits. However, here they are highlighted for you:
Investing in ULIPs gives investors a distinct edge over many other instruments, and rather than not investing at all. Here are key reasons to invest in ULIPs today:
The retail investors that are in a good position to invest in ULIPs are youngsters in India. With time on their side, the ability of a ULIP to build a safety net for your financial future is great. While you grow your wealth by investing in ULIPs, you are worry-free as you know your family is protected financially, in the event of any unfortunate mishap.
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ARN – ED/10/22/30050
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# Subject to conditions specified u/s 10(10D) of the Income tax Act, 1961.
##The customer is requested to seek tax advice from his/her Chartered Accountant or personal tax advisor with respect to his/her personal tax liabilities under the Income-tax law.
The Unit Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of fifth year.
Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. HDFC Life Insurance Company Limited is only the name of the Insurance Company, The name of the company, name of the contract does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.