Timely and proper planning is a must for achieving all your goals. And if the goals are long-term and entail the creation of a corpus for your retirement funding, or buying a house, you need to start early and invest wisely. This requires good research into the various options available and the risk involved. An attractive option is to invest in ULIP Insurance wherein you get both insurance coverage and wealth creation. Let us find out more about what is a ULIP Plan and how it helps in achieving your goals.
What are ULIPs?
The meaning of ULIP is Unit Linked Insurance Plan which offers the dual benefit of life cover and wealth creation. When you invest in a ULIP plan, the premiums paid by you are segregated into two portions with one portion set aside for creating a life cover while the remaining is used for investment. Mutual funds offer you the option of investing in equity, debt, or a combination of both based on your risk appetite and goals. You even have the option of changing your fund allocation in response to your changing risk appetite and growing age.
Who Should Buy ULIPs?
ULIPs are highly suitable for people looking to create a corpus for fulfilling their long-term goals like funding a child’s education, buying a house, or retirement funding. These plans come with a lock-in period of five years which means you cannot partially or fully withdraw the investment before the completion of five years.
Goals That Can be Fulfilled with ULIPs
ULIPs are long-term investments that can be used to fulfil your long-term expenses. You have the option of choosing from the single premium or regular premium best ULIP plans based on your target corpus. You can always use insurance premium calculator to estimate your insurance requirement as well as the amount required to fulfil your goal. This will help you finalise the premium amount and the duration of the investment besides choosing the investment option from equities, debt or a balanced fund. Some major goals that can be achieved when you buy ULIPs online or offline are:
- Child Education- Creating a corpus for funding your child’s higher education has become essential in the wake of rising education costs. You can use a calculator to find out how much you need to invest and for how many years to have a specific amount to fund your child’s education expenses.
- Retirement Planning– Invest in a plan that allows you to create a corpus that is enough to take care of your regular needs plus medical expenses after considering the inflationary impact.
- Buying a House– Depending on the time when you plan to buy a house, you can buy ULIPs and choose to invest in a fund that yields the desired returns.
- Marriage of Children- Another long-term goal that can be fulfilled by investing in ULIPs is funding the marriage of your children.
- International Travel– If you intend to save an international holiday that you have been wanting to go for a long time, ULIP investments are ideal. They offer both protection and returns. You can use the partial withdrawal feature in the 6th year or later to fund your travel plans.
You can choose the best ULIP plans in India to fulfil your long-term goals while securing the financial future of your family in case of any mishappening.