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How ULIPs Can Help You Plan for an Early Retirement?

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How ULIPs Can Help You Plan for an Early Retirement?
February 20, 2023

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

After facing the 9-5 work schedule for years, you tend to eagerly look forward to your retirement. You might also opt for an early one. This gives you the liberty to engage in activities that might have interested you over the years. Let’s have a look at some of the advantages of early retirement and the goals that you can happily achieve.

    Pros of an early retirement

  • Good for your health

    • After your retirement, you can spend your time doing the things you love. You are devoid of restrictions, hours of commuting and sitting behind a screen or a desk and reporting every detail to your senior. You can finally indulge in things that improve your mental health, reduce stress levels and keep you healthier.

  • Self-care

    • While working, you don’t always realise how many things have an adverse effect on you and eventually take a toll on your health. After you retire, you’re free to take good care of yourself. You could finally join that yoga class, go for a picnic on the beach or even choose to explore the world. Utilise your time wisely and indulge in activities that rejuvenate your spirit.

  • Time to give alternatives a chance

    • Some may not enjoy their current job. But responsibilities and the requirement of a steady income can make it impossible to put your passion over your profession. Once you retire, you have the freedom to explore other fields of interest. You could set up your own business or earn an income from a totally different stream by trying out new opportunities like online business, setting up exhibitions for your art and so on.

    Post-retirement goals

  • Travel and explore new interests

    • After you retire, you’ll have more time to travel and explore new destinations. You could finally take that much-awaited trip and tick off everything on your “to-do” list. Since you’ll have a lot of free time, you could pick up new interests that’ll excite you. You can write a book, create new music, learn a new language or simply try a new sport.

  • Make time for social life

    • Now that your days have freed up, you can schedule some time to meet your family and friends and rekindle bonds that may have been forgotten while you were busy working.

  • Engage in volunteer work

    • Your golden years are the perfect time for you to fill your days with meaningful work that makes you proud and happy. You can choose to mentor economically disadvantaged children in your society or visiting NGOs and helping them out on special projects.

    Planning for an early retirement

    While hard work plays a vital role in achieving success, it should be backed by a stable financial plan. We struggle our entire lives to secure our careers and fulfil our wishes. However, after retirement, the monthly cash flow stops, putting us at great financial risk. In order to meet all our post-retirement goals and expenses, you can consider investing in a Unit-Linked Insurance Plan (ULIP) as it is an excellent option for a secured and stress-free life.

    ULIP – How does it work?

    If your goal is to create wealth and save money for your retirement, a ULIP can be a very appropriate option. A Unit Linked Insurance Plan or ULIP is a combination of life insurance and investment. In addition to getting financially protected, you can opt to have your money invested in equity, debt or hybrid funds. A ULIP that can potentially help in meeting your retirement goals is the Golden Years Benefit option of HDFC Life Click 2 Wealth, which offers market linked returns & life cover till 99 years of age.

    Why should I purchase a ULIP?

    There are certain characteristics that make ULIPs an essential tool for investing your hard-earned income. Here’s a look at how a ULIP can help you achieve your retirement goals:

  • Potential for good returns

    • As the funds can be invested in the equity market, there is an opportunity to get very good returns if the market performs well. Of course, it’s important to remember that market-linked returns are subject to ups and downs.

  • Flexibility to switch

    • Depending on how the market is performing, you have the freedom to switch your debt fund to an equity fund or vice-versa. This will allow you to take maximum advantage of your investment and the fluctuations in the stock market. HDFC Life Click 2 Wealth offers unlimited fund switches, so you have a lot of flexibility as an investor.

  • Life cover

    • Possibly the biggest advantage of a ULIP is the fact that it also provides life cover. This means that your family’s financial security will be taken care of even if something were to happen to you.

  • Income tax benefits

    • The premium paid for a ULIP is eligible for a tax deduction under Section 80C of the Income Tax Act, 1961. Additionally, under Section 10D of the Act, the returns received from the policy on maturity are also exempt from income tax. So you can enjoy the benefit of a dual claim with this policy1.

ULIPs with HDFC Life

If you wish to fulfil your goals after retiring at an early age, consider HDFC Life Click 2 Wealth, which offers market-linked returns, minimal charges and provides financial backing to protect you and your family.

If you’re using the ULIP to plan for your retirement, the Golden Years Benefit option will be best suited to your needs. Learn more about it by clicking here.

So what are you waiting for? Invest for your future and protect your family with ULIPs to live a happy and stress-free retired life. 

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ARN: ED/10/19/16244

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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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