Life insurance for a long time has been a trusted mode of investment for many. This is why the insurance industry offers many investment options i.e. life insurance of different kinds to the consumer. Some of the popular kinds of life insurance plans include term plans, money back plans etc. But ULIP plans in India have really taken up the market as they have many benefits attached to it. It is considered to be one of the best ways to invest in a booming economy. Under this scheme, units part of the share market are bought with the money invested and as equity grows the money invested by the investor also increases and gives good returns.
Benefits of ULIP plans in India –
High growth potential –
As the money you invest is put in the share market, there are high growth opportunities. The company gets good returns as it gets commission for the purchase of the units. Investors too get good returns as the money invested grows at a very fast pace compared to many other investments.
Avail life cover –
ULIP plans in India are not just a way to invest in the stock market but they offer life cover as well. Some portion of the money you invest is kept aside for life cover. The rest of the amount is used to be invested in shares from the equity market and grow the wealth you invest. This is how ULIPs offer you life cover as well as money growth.
No hassles –
Not everyone has the time, the skill or the inclination to keep track of the market conditions. In such a condition, ensuring that the money you invest in equities is getting you enough returns becomes difficult. But by investing your money in ULIPs you don’t need to keep track of the market conditions be it volatile or calm. The experts managing your funds will do the needful. They have enough expertise in investing in the right funds at the right time. So you save enough time for other chores by letting the experts handle your investment.
Flexibility of premium payment –
Affordance is a major aspect that you need to check when making any kind of investment. This is why ULIP plans in India offer you flexibility to pay the premiums for the plan. The investor can opt to pay premiums either on a monthly basis, semi annually or annually. This ensures the investment does not affect your cash flows. The amount you pay, a minimum portion of that is used for insurance while the rest of the amount is invested in the share market.
Why you should invest in ULIP plans in India