Every single type of an investment that is made in the stock market is
subject to market risks. That is why it is very important to choose one’s
investments prudently and wisely. Depending on one’s short-term and long-term
financial goals, one should make their investments. However, why is it always
recommended to include a ULIP plan in one’s portfolio?
Offering both the advantage of investment as well as insurance, ULIP’s
refer to those products which are offered by insurance companies that give
investors both insurance and investment under the umbrella of one single,
integrated plan. So, technically investors can reap the benefits of insurance
while also gaining market benefits for the same.
They are offered by many insurance companies and by availing these plans
online it is easy to compare plans which are offered by different companies.
The ULIP
plan from AEGON Religare is known to be an extremely popular policy
that many people choose.
So why to buy ULIP plans? Some of the special features of Unit Linked
Life Insurance Policies include:
1) They provide flexibility of investments: They are known to offer a
complete selection of high, medium and even low risk investments; all under the
same policy. A policy can be chosen as per the investor’s risk appetite and can
be coupled with the opportunity to switch between different fund options.
2) There is discipline and
regular savings: They help investors to inculcate a regular habit of
saving, where the he average unit costs tend to be much lower than a one-time
investment.
3) They offer liquidity:
These investment options offer the benefit of partial withdrawal. An investor
can withdraw funds from their Unit Linked Account, thereby retaining only the
stipulated minimum amount.
4) They offer complete transparency:
Before an investor purchases this product, all the details of the various
charges are shared with him/her. This includes the value of investment,
expected INR based on the rates of returns and the charge structure. An
investor is also made aware of the annual account statement, quarterly
investment portfolio and the daily NAV reporting are regular updates and shared
with the investor so that the status of their investment portfolio at all
times.
5) There are multiple benefits
bundled into one product: These investment option offer a number of
benefits to investors. Some of these include long term investments, an
outstanding solution for risk coverage and tax benefits.
6) There is a spread of risk
(risk-diversification): Investors, who are hesitant about participating in
the stock market, are at a benefit by making
their investments in ULIPs. They can avail the benefit of market linked growth,
without even having to participate fully in the stock market. Thus, they get
the added benefit of risk-coverage.
However, do not procrastinate when you decide to purchase one. Although
many investors may want to complete their tax planning before they make
investments, it is not always necessary to do so. The investor should assess
the main objective why they are purchasing the policy, is it for wealth
creation, retirement planning or building a corpus for a child’s future? It is
always important to choose these plans while keeping in mind one’s risk
appetite and investment horizon.
Summary: There is a plethora
of investment options that are available for investors to choose from. ULIPs,
also known as Unit Linked Insurance Plans are known offer the benefits of both
insurance and investment. The ULIP plan
from AEGON Religare is one of the most popular options’ that is chosen by
many investors.
Resource Box: There are many
benefits of including ULIPs in your financial portfolio. Not only are they
known to provide a source of coverage, but they are also known to reap the
benefits of investment in the stock market. One of the popular options is the ULIP
plan from AEGON Religare.
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