ULIP is the best vehicle to drive in the crazy investment world
ULIP stand out as an ideal investment vehicle and has gained its popularity over the period of time as people who were hesitant against the ULIP policy structure sometimes back, are now willing adopting the investment-cum-insurance plan because of the related benefits, making it a worthwhile investment option in the current scenario. It’s an investment vehicle running on the wheels of dual benefits of investment in the capital markets along with insurance. You can be assured of a minimum sum in the range of around 10 times the total premiums that you pay and this is quite substantial.
One of the main reasons why investors believe that ULIP plans are an ideal investment option is because of the benefit of long-term effectiveness, which makes it a worthwhile choice in all respects. If you really wish to enjoy maximum benefits of unit linked insurance policy, it is necessary to hold on your horses till term- end since because this is the time when your policy is at the peak of higher returns.
The recent amendments by IRDA ensure higher protection for the consumers. In order to do away with the misleading view that ULIP is a short-term plan, IRDA has increased the lock in period for this scheme, from the earlier three years to five years from now. Thus, it attracts many high-end investors who have large income source and are planning for long-term gains over the desired period of time.
Many a times people are confused whether to choose security over investment and they have to sacrifice one of the plans, where majority choose investment sacrifice, after all we invest only for the security of family. But Unit Linked Insurance Plan is just the investment vehicle to fulfill both your needs. When you deal with financial advisors, they always try to suggest a combination of mutual funds and life insurance. Through ULIP, you ensure not only long-term maturity benefits and insurance coverage but also a substantial capital gain.
ULIP provides investors with flexible options to choose the policy pertaining to their preference and capabilities. You can go for low-to-high risk choices under the same policies. This is something unique and helps to find so many takers for this plan. Those who want can easily switch from one fund option to another without any additional charges for the same. Again, it is possible to go for one time increase in your current investment portfolio with higher returns in the future scenarios.
Just in case if you want to play safe and see the money grow surely and steadily over a period then ULIP is much better option in your view of long-term investment. It gives protection to your money with good returns in the coming times. Most new ULIPs have in-built features that provide for liquidity in case of unforeseen circumstances. These include loans of up to 40% of fund value and partial withdrawals. Investing in a ULIP is a long-term commitment and it's essential to compare products. If it suits your specific financial goals, go ahead and buy one.