1 / 5

ULIPs - Understanding the Concept of ULIP

ULIP plans need a long-term investment horizon of at least 10 years to earn the maximum benefits.<br>https://www.sbilife.co.in/en/online-insurance-plans/ewealth-insurance

skshaheen
Download Presentation

ULIPs - Understanding the Concept of ULIP

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Unit Linked Insurance Policies Understanding the Concept of ULIP

  2. The Multiple Benefits of ULIPs Flexible options: Choose from high, medium and low-risk investment options through different funds under the same plan, based on your risk appetite. Transparency: All information regarding the charge structure, value of investment, expected rate of returns, etc., are available before you invest. You can also access the annual account statement, and daily NAV reporting to track your investment portfolio. Liquidity: In case of any unforeseen events, you can make a partial withdrawal. This is possible after the end of the lock-in period of the first 5 years. Disciplined and regular savings: ULIP plans help inculcate a regular saving habit through the SIP route to help build a good corpus for financial security. Tax benefits: Premiums paid towards unit linked insurance plans are exempt from tax under Section 80C of the Income Tax Act, 1961.

  3. Why ULIPs Work Best for People Aged 25 to 40 years ULIP plans need a long-term investment horizon of at least 10 years to earn the maximum benefits. Lower premiums: When you start early, you benefit from lower premium amounts since you are likely to be in the best of health. Benefits of compounding: The interest you earn on your investment in ULIPs are reinvested to raise the base capital amount. This means you are earning interest on larger and larger amounts each time. Financial security: When you give enough time for your money to grow, you can build a good nest egg to live a comfortable retired life.

  4. Tax Benefits of Unit Linked Insurance Plans Premiums paid on ULIPs are eligible for tax deductions of up to a maximum of ₹1.5 lakhs during a financial year, under Section 80C of the Income Tax Act of India, 1961. The amount you receive on maturity of the unit linked insurance plan is also exempt from taxes under Section 10(10D) of the Income Tax Act.

  5. Things ULIP Investors Should Keep in Mind ULIPs have a flexible payment structure. You can choose to either make a lump sum, one-time investment or go the SIP route. ULIPs have a lock-in period of 5 years. You cannot withdraw funds during this period. ULIP plans can be a good tax-saving investment, bringing you benefits of insurance, investment and tax exemptions. Re-balance your investment closer to the time of maturity of your unit linked insurance planto maximise gains. Consider increasing debt exposure to limit market risk.

More Related