ULIP (Unit-linked Insurance Plan). ULIP’s are a combination of insurance + investment. A small portion of the money invested goes to securing your life whereas the rest of the money is invested in the market. Policyholders can pay premiums monthly/annually.
As a conscious tax planner, you can look into some of the best ULIP plans that not only helps you save tax but also meet your long-term financial goals. Not considering this aspect can reduce your take-home salary and deny you the return on your investments. This is the reason you need to invest in a well-planned investment option that helps in wealth creation, boost your income, and achieve your investment goal.
If you are looking for a tax-saving plan that gives you the combined benefit of life insurance and returns on investments, then you need to consider the Unit Linked Insurance Plan (ULIP). It is straightforward to buy ULIP online. Its primary feature is to divide the premium between money market instruments and risk-to-life coverage.
As a result, what you get is a wide range of benefits that not only secures your family against financial instability that could arise due to untimely demise but also enable you to receive regular returns in your lifetime. You can make your insurance policy earn for you rather than parking those funds in traditional insurance.
However, it is crucial to choose the right plan when you buy ULIP online. This is why you must evaluate the requirements and your capacity to handle risk. The best ULIP plans available today enable you to select the composition of asset classes based on your risk appetite and financial goals. While equity funds give you the potential for long-term growth, debt funds help in wealth creation.
Here is how you can choose the right plans:
- Compare Different Plans
There is a wide range of ULIPs out there. So, make sure you have weighed different plans based on several factors and parameters to help you find the one that is most aligned to your personal needs. Assess your ability to withstand risk and find the right mix of market entities that you want to invest in.
- Understand Different Charges Under the Plan
Are you looking for the best ulip plans online? Make sure you understand various charges that make up your policy. There are several service charges, such as premium allocation, policy administration, fund management, and a lot more that you must enquire about at the time of investment.
It is essential to educate yourself about these charges because they can lower the premium amount and, by extension, your fund value. So, when you are comparing the plans, compare the charges too and select the one with the lowest charge structure. Moreover, when you buy ULIP online, you can save the premium allocation charge as there is no intermediary involved in the selling process.
- Learn About Different Fund Options Available
When choosing from the best ulip plans available online, it is always better to choose the one that gives you maximum flexibility to invest across various fund options. The ULIP plans offer you that flexibility to switch between debt and equity funds that account for market volatility.
For instance, you can invest in debt funds when the market is uncertain and go for equity funds when the market is performing well. Since ULIPs are long-term investment plans, learning about fund options and leveraging the flexibility offered by it will help you stay invested for a longer duration.
- Check-out the Features of ULIPs
Here are some of the features that will help you buy ULIP online:
- Allocation of premium
With ULIPs, you can invest in your future premiums across different funds of your choice
- Top-ups
Depending upon your plan, you can invest surplus money either multiple times or once in your existing plan. So check with your insurance provider about the policy terms to leverage the top-up feature.
- Fund switches
Ask about the number of free switches your ULIP plan allows. More often than not, insurance providers allow free switch between debt and equity funds.
- Partial withdrawal
ULIP policy allows you to partially withdraw your funds invested once you have completed the lock-in period. These funds can be used to meet your short-term emergency requirements.
- Check Additional Benefits
ULIPs can also be supplemented with riders to make your insurance coverage more comprehensive. It is also a great tool to customize your investment plan to suit your specific needs. Make sure that you have good availability of rider options that fit your needs when you buy ULIP online.
When you invest in ULIPs, you are also eligible for tax benefits under Section 80C of the Income Tax Act, 1961. All your premiums up to Rs. 1.5 lakh allows you to claim tax deduction that can increase your take-home salary.
Prominent benefits and features of some of the best ulip plans, make these instruments a viable investment plan for long-term investment. After you have understood the policy, you must research and compare the available plans that will suit you the most. You must also read the policy document carefully to help you make the right decision.
Therefore, when you want to buy ULIP online, you are advised to compare the policies and review their benefits thoroughly before investing. Online ULIP plans from reputable insurers, such as Max Life Insurance, enable you to evaluate, analyze, and choose policies that optimize your benefits and match your risk appetite.
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