Tips to maximise gains with your ULIP Investments
Buying a Ulip? Look beyond returns
It’s a common enough conundrum, but one which is being solved by financially savvy Indians: how to gain entry into the markets with lower risk? In a world grappling with the repercussions of the COVID-19 pandemic that has claimed jobs and forced companies to fold around the world, it seems hardly worth the risk to bet on a fluctuating stock market. But what if you let your ULIP investments do the heavy lifting for your portfolio?
Recap: Why ULIPs make sense in a tense economy
ULIP plans, or Unit Linked Insurance Policies, are life insurance products that offer the dual benefit of life coverage and an entry into the capital markets. In many ways, ULIPs can upend conservative investment planning on its head with its array of benefits, from tax rebates (under Sec 80C of the IT Act, 1961) to investing in an array of asset classes. You may buy the life insurance plan online and get a lowdown on the plan tenure, its expected return rate, average NAVs over the last three years, and even the charge structure before you sign up.
While the Indian economy struggles to get to its feet from the backlash of the year 2020, it is certainly worth your while to consider ULIP policies for their propensity to create long term savings and allowing partial withdrawal against the corpus created (after 5 years have elapsed). Some companies also allow monthly income schemes so that you earn a guaranteed sum every month.
Mulling over buying a ULIP? Make the most of it
You might decide to test the waters by choosing a ULIP plan for your year 2021 investment planning – that’s a great choice, but you must do a few things first to maximise your long-term gains. Here is what you need to do:
