What are different types of ULIPs?
Out of the various kinds of insurance policies available these days, one which is really unique is the Unit Linked Insurance Policy/Plan, commonly known as ULIP. ULIPs combine the dual benefits of an insurance policy and market-linked appreciation of your funds. There are many types of ULIPs and each needs to be mindfully understood to purchase the right kind that lines up with your needs and goals.
Related: Basic Guide to ULIPs
Let’s have a look at the different types of ULIPs available depending on the type of investment:
ULIPs for retirement planning: Retirement brings an end to your regular income, therefore these plans work on investing a portion of your income during your earning years, in a regular disciplined manner over a period of time. After the maturity of your policy, you are allowed to withdraw a lump sum of the money accumulated. Post that you receive fixed regular payouts for the rest of your life.
Related: Retirement Plan Calculator
ULIPs for child education: This ULIP is for your children and focuses on catering to their needs at different stages of life. It aims to provide financial support for expenses related to your child’s future, such as education, marriage etc. Hence, this ULIP helps your children realise their dreams even if you are not around to support them.
Related: Cost of Education Calculator
ULIPs for wealth creation: Who does not want to be rich? If you are the kind of person who wouldn’t mind a little extra wealth, investing in one of these plans is the way to go. Choose from the different kinds of ULIPs for wealth creation and get a huge return on your investments.
ULIPs for health solutions: This is an extremely important, robust health plan that every individual must consider purchasing. These kinds of ULIPs will help you bear health related expenses and some might even fund your future health insurance charges.
Now that you are well informed of the kinds of ULIPs available in the market, you can ask more detailed questions the next time you are being advised on which financial product to invest in. Above all, just remember to start now!