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Why should you choose ULIPs as your investment option?

Nov 11, 2019 | 8 months ago | Read Time: 3 minutes | By iKnowledge Team

Wealth multiplication plays an important role in improving your financial condition, and over the years, equity investments have proven to be the most effective tools for building your wealth. With numerous investment sources in the market, it is easy to get confused and make mistakes at first. However, with a little experience, or maybe assisted investment, you will start reaping considerable profits soon.

While you are busy on the field, trying to build an empire for yourself, you need to make sure that your family is protected financially, and is kept safe in the worst of times. Even though you think your wealth may be enough for their survival, you need to think again. There may be a fair chance that your wife and child may not be able to adapt your business style or maybe, a family rift which could lead to the division of wealth. If you think that a basic insurance policy may not help you financially, you can opt to invest in ULIP funds. Aegon Life offers a ULIP plan that provides investment and protection. You can select from 6-unit linked plans and make an investment with a starting price of just Rs 2000.

With financial security and constant returns, ULIP funds can lend a major hand in improving your financial condition. If you wish to increase your wealth faster, you can choose to invest in ULIP funds monthly. Here are the reasons that prove investing monthly in a ULIP policy can be beneficial.

  1. Investment and cover combined: ULIP funds are a combination of investment and insurance. The policy invests a part of your premium in unit-linked funds which provide considerable profits. With dual benefits, this policy can be a solace for an aspiring investor.
  2. Convenient premium payment: Among the many benefits provided in a ULIP fund, the policyholder gets the benefit of flexible payment. The policyholder can customise his premium payment duration from yearly, half-yearly and monthly investment options. In fact, even the annual premium in a ULIP, works on the rupee cost-averaging principle.
  3. Switching funds for better returns: ULIP funds give you the advantage of transparency and flexibility. You can change between the fund options available and make the best of the opportunity. However, most insurance companies allow a certain number of ‘free’ switches per year.
  4. Better for long-term investments: When your fund outflow is in small amounts, it would hardly affect your financially standing. Similarly, ULIP premiums are usually in small amounts, due to which an investor can easily invest on a regular basis, for a longer period. Due to the insignificance of the amount, the investors can pay the amounts constantly even after facing ups and downs. Moreover, if the policyholder keeps the amount invested for a longer period, the returns could be substantial.
  5. Tax Benefits: Saving taxes can be beneficial only if you do it right. Insurance is one of the common tools used by many people to avoid taxes. If you choose to invest in ULIPs, you can avail tax benefits under Section 80C & 10(10D). You can also use it to save tax as part of your INR. 1,50,000 under Section 80C tax savings for the financial year. In addition, the maturity amount is tax free under Section 10(10D).

Withdrawal facility: If things take a wrong turn, and you are in dire need of funds, you can take the help of your ULIP funds which provide partial withdrawals up to 20 percent till the lock in period. You can also choose to stop paying and make a full withdrawal of your policy before its maturity date, though there would be few surrender charges applicable. To know about Aegon Life’s life insurance products like term insurance and other products, visit our home page.


iTerm Plan

Life Insurance Plan with 3 Options to Choose from

  • Life Protect (Life cover till age 100 years)
  • Protect Plus (5% Automatic Increase of life cover)
  • Dual Protect (Protection + Regular Income)
iTerm Plus Plan

Life Insurance Plan with 4 Options to Choose from

  • Life Plan
  • Life Plus Plan
  • Life & Health Plan (10 Critical Illnesses covered)
  • Life & Health Plus Plan (36 Critical Illnesses covered)
iInvest Plan

iInvest Plan with 3 Options to Choose from

  • Increases Your Investment
  • Boost Your Fund Value
  • Withdraw Your Investment
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