ULIP: How it fits into the lives of growing families and young professionals

Investments are a primal part of financial planning in today’s competitive economy. You need to have multiple income sources to meet the economic challenges and secure the lives of those you love. One way to do this is by investing in the market, and the other is a viable life insurance policy with adequate sum assured.

But what if you could do both without having to invest a lot of time and energy?

Young professionals and growing families have busy lives as it is. It may seem cumbersome to research companies in which to invest or evaluate the pros and cons of stock markets, mutual funds, and savings plans. However, life insurance is a necessity that you are bound to purchase. Why not combine it with an investment element for hassle-free solutions?

What is ULIP?

Ulip is a unique type of life insurance policy. It combines the facilities of securing the future finances of those you love with investment opportunities for added benefits.

ULIP stands for Unit-Linked Insurance Plans. The name itself depicts the unique nature of these policies. When you purchase a ULIP, you will need to select the policy tenure and sum assured, much like any other form of insurance plan. In case, as the policyholder, you pass away during the policy tenure, the insurance company will pay your beneficiaries the sum assured in the form of a death benefit. However, to avail of all of the benefits of the policy, you must pay your premium on time.

The unconventional part of ULIP plans is the facilitation of investments. Based on your risk preferences, you can choose from market-linked and risk-free plans. As per your choices of either equity or debt or a balanced investment in both, the insurer will invest part of your premiums into the unit-linked instruments. You can earn profits in real time.

When you need money, you can liquidate these investments or you can sustain them to keep growing. In the event of your demise, the insurance company will pay the invested amount, the profits gained from them, and the sum assured as death benefit.

Top reasons for women to invest in ULIP

Women these days are highly independent. They take care of their families and themselves. With or without a spouse, women have established themselves as forces of stature to be recognised. Therefore, it is only fitting that women also have the means to support themselves and build their wealth.

A life insurance policy is incontestably paramount in today’s uncertain times. If, as a woman, you have dependents, be they parents, spouses, or children, you need an adequate financial plan that will pay for their requirements in the event of your death.

Reasons for women to invest in ULIP pertain to these responsibilities heavily. Here are the major reasons for women to invest in ULIP:

• You can have peace of mind knowing that your dependents will have sufficient financial coverage when you are not around to take care of them.
• You can combine the much-needed life insurance policy with a suitable investment plan.
• You can take risks in investments if you want, or opt for safe and guaranteed returns. You can also experiment by investing in both so you can earn large profits from time to time as well as steady financial gains.
• You can build a corpus for your golden years or emergencies.
• You can switch investment plans because one of the primary reasons for women to invest in ULIPs is the flexibility.
• You are eligible for substantial tax benefits. Therefore, not only can you secure your family’s future and accumulate wealth, but you also save what you earn.

In truth, ULIPs are a one-stop solution for women as well as growing families to build wealth and relieve stress. The distinctive benefits of ULIPs are the top reasons for those who seek financial independence to also seek out ULIPs.

Conclusion

There are plenty of reasons for women to invest in ULIPs but that’s not all. It is a good investment plan for young professionals of any gender. The unique execution of ULIPs allows you to diversify and grow your wealth while securing your loved ones’ future.

With suitable ULIP investments, growing families can ensure that there is always emergency funds available for life goals. Be it a child’s education, parents’ medical expenses, or simply to deal with the growing expenses while expanding the family, ULIPs help you prepare a financial backup plan.

ULIPs help you plan for the future and ensure that no matter the amount of sum assured, the value of the money you leave behind will suffice to take care of your beneficiaries. The increasing rate of inflation will not diminish the value of the death benefit. Your money grows exponentially, keeping with the economic changes, thereby making it a compatible solution.

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