1. Freedom to Select Your Life Cover
Investing in Unit Linked Insurance Policies means having the option of selecting the amount of Life Cover that you require. The minimum life cover given by most ULIPs is ten times your yearly premium amount.
2. The Ability to Select your Investment Type
Investing in a ULIP means having the ability to select your investment type. There are three main types of funds: equity funds and debt funds and a hybrid of the two known as balanced funds. Equity funds involve investments such as the purchase of stocks. Debt funds are those funds that invest in debt instruments. Finally, balanced funds invest in both equities and debt funds.
ULIP plans allow you to invest in a variety of funds based on your goals and risk tolerance. For example, if you want to increase your wealth and are willing to take a risk with your investment, you can go for equity funds. On the other hand, if you want to receive consistent returns on your investment, you may put your money into debt funds.
You may also use the switch option to transfer money between equity and debt funds. Most insurance policies include a set number of free switches each year, with a small fee applied for switches beyond that.
Unit Linked Insurance Plans (ULIPs) have a partial withdrawal option that can be made only after the lock-in period. This option allows you to withdraw a part of the money invested in your policy. This allows you to cater to expenditures such as your child's 10th, 12th, or college admission fees, travelling on a family trip, in case of an emergency, and so on. In addition, partial withdrawals are often free of charge.
4. Goal-based Planning
ULIP plans are designed to assist you in achieving your key financial objectives, such as wealth development, retirement planning, or saving for your child's education. In addition, these plans also provide the added benefit of knowing that your premium is contributing towards your long-term objectives.
5. Tax Advantages
Under Sections 80C and 10 (10D) of the Income Tax Act of 1961, currently, investing in a ULIP allows you to save tax on your hard-earned money. You can obtain tax breaks at various stages of your life insurance policy. However, tax benefits are as per current tax laws, and subject to change.
The meaning of ULIP is defined by their advantages. These advantages make it clear that investing in a ULIP is a smart decision.
ULIP plans offered by Bharti AXA Life aims to provide life insurance cover and investment growth to the policyholder. This policy plan offers a comprehensive financial solution to provide life cover of up to 10 times the amount of the premium. It thus helps build wealth over a long period of time and enables fulfilment of aspirations and dreams of the individual and his/her family along with tax benefits. For instance, Bharti AXA Life Wealth Pro* plan provides two variants to choose from: growth variant and legacy variant. Moreover, multiple investment strategies are also offered to choose from as per the investor's suitability and needs. Other benefits included in the plan are a death benefit, maturity benefit, loyalty addition, settlement option, and others.