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4 Reasons to Invest In ULIP Plans Today Itself

4 Reasons to Invest In ULIP Plans Today Itself
March 07, 2017

 

The conventional investment avenues such as savings account and fixed deposits are unable to provide returns that can beat the rapid inflation. On the other hand, investing directly in the share markets are laden with heavy risks. This is why investment scheme such as Unit Linked Insurance Plans (ULIPs) were introduced in the market. ULIPs are a great investment scheme that lets you reap the benefits of the share market without hefty risks and also doubles up as a life insurance policy. What could be better than a market investment scheme and a life insurance policy rolled into one? Apart from the dual benefits, ULIP plans offer several other benefits that make it one of the best long-term investment schemes. Here are four important reasons why you must invest in a ULIP plan today itself!

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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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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