Top 6 flexible benefits that ULIPs offer

Financial flexibility should be the 1st thing on your priority list

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Unit Linked Insurance Plans or ULIPs as they are popularly called are market-linked insurance plans which help you plan for Long Term Savings and financial Protection.


Let's walk through the 6 top features of Unit Linked Insurance Policies which you should explore before making the purchase:


1. Flexible investment options

ULIPs offer a whole host of high, medium and low-risk investment options via different fund available under the same plan. You can choose an appropriate plan according to your risk-taking appetite.


ULIPs provide the flexibility to choose either the sum assured or the premium based on your needs. They also provide the flexibility of increasing your investment portfolio through top-ups to make the most of investment opportunities due to any change in the external environment or your own income flows.


2. Transparency

The charge structure, value of an investment and expected rate of returns, for the complete tenure of the policy are shared before you buy a product. It's always a good idea to understand the product you would be investing your hard-earned money into.


Similarly, the annual account statement & quarterly investment portfolio along with the daily NAV reporting will ensure that you are aware of the status of your investment portfolio at all times.


3. Liquidity when you need it

In case of any unforeseen future events, ULIPs also let you do a partial withdrawal; wherein after the first 5 years, you can withdraw funds from your Unit Linked Insurance Plans.


4. Disciplined and regular savings

ULIPs help you inculcate a regular saving habit, which goes a long way in building a corpus for future needs.


5. Tax benefits

The premiums paid towards the policy are exempt from tax under section 80C. of income tax Act, 1961.


6. Spread of risk

With ULIPs, you get the benefit of market-linked growth without actually participating in the stock market, not to mention the added benefit of life-cover. 



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