4 Reasons to Invest In ULIP Plans Today Itself
Table of Content
Combines Insurance with Savings
A ULIP is a life insurance plan, which also doubles up as a long-term investment plan. Besides the death benefit, a ULIP plan gives out a corpus enhanced with market-linked returns on maturity. Therefore, you don't have to take up a separate life insurance plan and mutual fund investments to meet your financial goals.
Multiple investment options
Unlike traditional investment schemes and life insurance plans, ULIPs offers a variety of schemes. An individual can choose from multiple options of ULIP schemes according to his investment needs and risk appetite. A ULIP investment can be broadly categorized into the following categories:
- Aggressive ULIPs (invests majorly in the equity markets)
- Balanced ULIPs (invest in both equity and debt markets)
- Conservative ULIPs (invests majorly in debt markets)
Flexibility
Now one may think that ULIPs are similar to mutual funds, due the different investment options. Unlike mutual funds, ULIP offers the investors the flexibility to switch between the different types of schemes. Switching between the different schemes is the best way to capitalize on the investment opportunities across the equity and debt markets. For instance, an individual can switch from a conservative to an aggressive scheme if he seeks a higher rate of return.
Systematic investment
A ULIP plan encourages an individual to invest in a disciplined manner. Investing small amounts of money at regular intervals keeps you insulated from the highs and lows of the fluctuating market. This helps you gain from the benefit of rupee costs, which in turn helps you make the most of the price fluctuations of the market.
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