ULIP Plans – A Smart Way To Manage Your Wealth

Jul 14, 2018 | 1 year ago | Read Time: 3 minutes | By iKnowledge Team

Wealth Management

Even if you have a regular income, fulfilling your basic needs might become a challenging task. With inflation reaching an all-time high, the gap between income and expenditure is increasing each year. People who rely entirely on their salaries are often hit by financial insufficiency, mostly in an emergency situation. But by taking some timely and wise decisions, you can lead a stress-free life and can create wealth for future use. All you need to do is commit to an investment plan that guarantees a financially secured future while taking care of your current financial needs.

Investment is one of the best ways to multiply your wealth within a specific period of time. Therefore, choosing the right investment channel is the first important step in this direction. While there are numerous investment mediums available in the market, as a beginner investor it is recommended that you stick to more risk-averse or lower risk options. Unit Linked Insurance Plans generally known as ULIPs are a type of insurance that also offer the options to receive regular returns on your investment. They are market-linked investment schemes combined with an insurance policy.

How does ULIP work?

A ULIP is an insurance cum investment scheme, which enables you to invest in the stock market through an insurance policy. The premium paid towards the insurance policy is bifurcated and allocated in the two channels. Here you get dual benefits i.e. an insurance cover and constant returns to help you in wealth creation. When investing in a ULIP, you must consider the risks that come with market-linked investments.

How does ULIP help in wealth accumulation?

Investment is all about making the right decisions. You have to pay a certain initiation amount to avail the policy and then you can keep paying premiums regularly. Here are some ULIPs which can help you with wealth accumulation and management.

ULIP for children education: The price of education has constantly been increasing. It has become hard for parents to fund their children’s education. However, you can avoid such situations by investing in Aegon Life’s iInvest plans, which offer numerous long-term benefits. It provides fund selection options to choose from 6 different funds to invest in. It also gives additional loyalty units after 5 years of continuous investment. You can also withdraw up to 20% of the invested amount to fund emergencies.

 ULIP for the young and the retirees: In this plan, fund houses offer benefits like auto-rebalancing of funds along with tax benefits for better financial management. The plan also offers death benefits like giving entire sum assured to the nominees if the premiums are paid on a regular basis. At maturity, you get the entire invested amount as a lump sum payment. Also, you get the benefit of partial withdrawal. Some ULIP providers also offer plans that minimise the investment risk for stock market investments. To get such benefits, you can opt for Aegon Life’s Future Protect Insurance and Future Protect Plus plans.

ULIP for wealth collection: Such ULIPs are ideal for people between the age group of 25-40. For wealth collection, you need a plan that multiplies your wealth at a rapid rate. iMaximize insurance plan and iMaximize Single-Premium Insurance Plan by Aegon Life provide benefits at optimum costs. These policies allow you to increase the fund value by adding top-up funds in your portfolio. You can choose from 6 different fund options and switch funds according to your preferences. In a single premium insurance plan, you get benefits like zero allocation charges and tax-free returns.

Before investing in ULIPs, it is important to know that these funds consist of stock market investments. Therefore, they are exposed to risks and the return on investment can be affected due to the market fluctuations. Hence, it is important to inspect each and every parameter before beginning the investment.

Advt. No.: IA/Jul 2018/4160

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