With financial independence, accompanying responsibilities await every single person stepping into the different phases of adulthood. At any point, one of the main things that can turn into a source of stress is a lack of financial security that covers you as well as your loved ones in the long term.
Naturally, the most sensible thing to do to ensure your dependents’ financial security is to invest in a life insurance plan.
There are many different life insurance plans that you should take a good look at to find the one that best suits your needs, but if your ultimate goal through investment is long term wealth creation, Unit Linked Insurance Plan or ULIP is your best bet.
ULIP is a type of multifaceted life insurance plan that provides the insurer with the benefits of an insurance policy as well as an investment under a single plan.
Among additional customizable riders that many companies like ICICI provide for the convenience of the insurer, a ULIP provides a death benefit to the nominee. A maturity value is also provided if the death benefit doesn’t come into use while your money grows over the policy term.
Here’s how ULIP is the right investment option for long term wealth creation:
Regular Savings: A ULIP requires you to make regular premium payments of the amount opted by you. This helps greatly in long term wealth creation as in the absence of such a policy that allows regular savings; it’s quite easy to lose track of expenses and save nothing for the future.
Better Returns: As compared to other investment options, a ULIP will give you greater returns by investing in various asset classes, which adds up to better wealth creation. You can also easily opt for different funds every year in terms of investment to always stay on the more beneficial side of the deal.
Investment Flexibility: A ULIP is one of the most flexible investment options you could opt for, which is always a great thing if you’re looking for long term wealth creation. With flexibility in top-ups, fund investments, premium redirection and partial withdrawals, you have better control of your money and can choose the right funds for the best long term wealth.
Tax Benefits: As per Section 80C of the Income Tax Act, 1961, ULIPs are eligible for tax benefits throughout the policy term. One of the main benefits includes the exemption of ULIP maturity proceeds from tax. You can also switch between different ULIP funds in your policy term without any additional tax.
Investment Rewards: With ULIPs, many plans like ICICI Prudential Life’s ULIP plan offer additional investment rewards in different forms for staying invested like Loyalty Additions or Wealth Boosters.
With these benefits of Unit Linked Insurance Plans, you can rest assured after choosing this as an investment option to secure your family’s financial future in any kind of situation.
ULIPs offer adequate financial protection with long term benefits that you can avail yourself throughout and also will help your loved ones in your absence. Check out ICICI’s ULIP plans to take the right step and secure your family’s financial future.
Disclaimer: This is a collaborative post on behalf of ICICI Prudential, but then again as always, we are devoted to providing content that is supportive and valuable to the readers.