1. Take the right amount of cover
ULIPs are designed to help you fulfil your financial goals like funding your child’s education or planning for retirement. ULIPs also secure your family. Your loved ones can get a lump sum paid out to them in the unfortunate event that you are not there You can either opt for a minimum cover or you can increase your family’s financial muscle by increasing the amount of cover under your policy 2. Consider your goals Unit Linked Insurance Plans (ULIPs) give you an option to invest in equity, debt or a mix of both. In this, you get protection for your family using the debt funds as well as fulfil your future financial goals through the equity funds. Depending on your risk appetite, you may move your funds between the two, equity and debt funds. This allows you to enjoy the best of both worlds. 3. The time you intend to invest ULIPs help you to create wealth in the long run as well as protection for your family. It would be advisable to invest in the long run. This is because if you stay invested for a long time, your insurance company offers you bonuses which allow you multiple wealth growth. 4. Get tax benefits Under the Income Tax Act, 1961, you can save taxes on your hard-earned money with ULIPs. There are tax advantages at the entry stage, earning stage and the maturity stage. 5. The Power of Compounding The biggest benefit of starting early is the power of compounding, which provides the foundation for time value for money. Even if you invest a small amount for several years consistently, it will grow into a large corpus. 6. Know the charges in your ULIPs help you to grow wealth. However, for these benefits, they also attract charges. It’s prudent of you to know the charges on your ULIPs before purchase. The following are the charges the ULIPS attract; however, the charges reduce over time and thus result in wealth creation. The charges may also be reviewed from time to time.
7. Understand the key features of your ULIPs
0 Comments
|
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
April 2022
Categories |