Why Should Women Invest in ULIPs?

 

In this policy, the investment risks in the investment portfolio is borne by the policyholder

In today’s dynamic world, women are shattering the glass ceiling, managing households and more. They are proving they can excel in all walks of life. However, women sometimes shy away from making big financial decisions alone. It’s time for women to take charge of their financial futures, and one powerful tool that empowers them is Unit-Linked Insurance Plans (ULIPs). Let’s better understand why women should consider investing in ULIPs and how this versatile financial product combines insurance with wealth creation.

ULIPs Unveiled

A ULIP or Unit-Linked Insurance Plan is a hybrid financial product that blends insurance with investment. When you invest in a ULIP, a portion of your premium goes towards providing insurance coverage. The rest gets invested in various funds based on your preferences. You can choose a selection of equity and debt funds per your risk appetite and investment goals. The dual benefits of insurance and investment make ULIPs unique and flexible investment tools.

Why Should Women Invest in ULIPs?

As women become self-sufficient, they must take charge of their finances and identify ways to grow their wealth. When you invest in ULIPs, you enjoy:

• Financial Security Through Insurance
  

  ULIPs offer financial security through life insurance coverage. Your loved ones receive a payout if anything happens to you. The ULIP offers a financial safety net during difficult and trying times. They provide your family members with financial protection and help look after them in your absence.

• Wealth Creation Opportunities
  

  Apart from life coverage, ULIPs also provide wealth creation and growth opportunities. The investment component of ULIPs allows your money to grow over time through market-linked returns. You can use the ULIP to build a corpus to meet your long-term financial goals, such as buying a home, funding your child’s education, or retirement planning.

• Flexibility and Control
  

  ULIPs offer flexibility and control that few other investment options can match. You can choose from various funds based on your risk appetite and financial goals. Moreover, you can switch between funds to align your investments with changing circumstances and dynamic market conditions.

• Long-Term Growth
  

  ULIPs are long-term wealth-creation tools. They are ideal for your future goals. As a woman, you may have to deal with unique financial challenges such as lower pay scales or career breaks. Investing in a ULIP helps build financial discipline and encourages long-term growth, empowering you to overcome these hurdles easily.

• Tax Benefits
  

  ULIPs also come with attractive tax benefits under Section 80C and Section 10(10D) of the Income Tax Act¹. The premium you pay, the maturity proceeds, and the sum assured payout all enjoy tax exemptions. Investing in a ULIP helps you build a corpus for the future while saving on taxes in the present.

Understanding the Best ULIP Plans to Invest In

Choosing the right ULIP is essential to maximise your returns. You must research to identify a ULIP that aligns with your financial goals and risk tolerance. Look for ULIPs with a track record of consistent returns and a strong fund management team.

Investing in a ULIP is about more than growing wealth. It’s about empowering women to take control of their financial futures. ULIPs offer financial independence, empowerment, and a brighter future for women and their loved ones. Don’t wait. Start your journey towards financial freedom with a ULIP today!

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• ULIP Plan Charges You Must Know
• How to Choose ULIP Plan in India - Complete Guide
• Investment Planning with ULIPs - How to Better Your Financial Life
• ULIP Tax Benefits - Tax Saving Investment Option
• Pros & cons: Should you pay off your mortgage before you retire?

ARN - ED/10/23/5874