In Unit Linked policies, the investment risk in the investment portfolio is borne by the policyholder.
Trending Market - Dual Benefits of Investment and Risk Coverage
16th October 2018
Investment is one of the most important steps for garnering financial benefits and also important is the security of your funds and your capital gains. Cost of living has ensured that merely relying on savings is never enough. The goals that you have today and in the future require assured finances that can come only by investing properly, regularly and carefully.
ULIPs (Unit linked insurance Plans) form a highly beneficial medium that allows you to invest with multiple advantages. ULIPs allow you access to both - investment and insurance. Investing in ULIPs means that you enjoy a life cover and have the guaranteed opportunity of earning market-linked funds, thereby giving you a considerable leverage over investing exclusively and separately in insurance.
The premium paid by you is divided into two parts – one part of the amount goes towards providing the insurance cover while the other balance gets invested as per your choice (after the management charges are deducted). This not only assures a great level of flexible options as per your requirement but also ensures that the funds are properly channeled for your benefits. Besides, the basic lock-in period is of 5 years which also ensures financial discipline and regular investment. The combined benefits of investing in a ULIP include the diverse investment options that can be availed. The investment proportion of your premium gets invested into different fund options managed by professional fund managers. These fund options, in turn, invest the premium amount in varying proportions of various financial instruments like equities, debt and money market instruments. All these investment options carry different levels of risk and return potential. Generally higher the risk, higher would be the return potential. While equities involve the highest investment risk, they also tend to give higher returns over the long run. However, the choice of investment is completely up to you and your specific requirements.
Investment is ULIPs also comes with income tax benefits and allows you to save on your corpus at the time of plan maturity. One of the most attractive benefits of investing in ULIPs is the flexibility of deciding the amount of premium that goes towards insurance and investment, respectively. Besides, there are also different fund options that you can choose as per your needs. ULIPs are also appealing because they are transparent. You can actually track your fund portfolio and you know where the money is being invested and can track the flow of capital gains. All ULIPs (apart from annuity products including pension) also provide a minimum life cover or health cover. This cover goes way higher than what is being offered presently. The health and life covers will be provided as riders. Therefore, you can actually enjoy a higher cover with ULIPs. This allows you to meet your short term as well as your long-term financial goals.
HDFC Life offers HDFC Life Click 2 Invest ULIP – a plan specially formulated for best meeting your investment needs and for providing a lasting cover to you and your loved ones. For further details, kindly click on the mentioned link:
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