ULIP Policy Flexibility: Investing for Wealth Creation

You might be looking for the best insurance plan which also helps you multiply your funds and create more wealth. Given the current financial market landscape, it has become important to compare and opt for investment options which adapt quickly.

A Unit Linked Insurance Plan (ULIP) might be one of the best available options in the market. Are you wondering why? Well, this policy is framed to adapt to the fluctuating market easily and also offers you multiple customisations in their framework. When you think of maximising your returns and multiplying your wealth simultaneously, a perfect ULIP policy awaits your investment. 

Read this blog to understand how ULIP offers various flexibility options to policyholders. 

Defining Unit Linked Insurance Plans

ULIP, or a Unit Linked Insurance Plan, is an insurance plan that allows the policyholder to enjoy both the benefits of investment and also life cover. This plan helps you meet the triple benefit of securing a financial future for your loved ones while aiming at wealth creation over the long term.

The premium of a ULIP policy is segregated into two parts, where a portion goes towards the investment, while another part gets directed to investments. The balance invested in the choice of your funds is further eligible for tax deductions under the Income Tax Act 1961.

Understanding the Features of ULIP Insurance

Before understanding the flexibility options of the plan, let us go through some features of the plan.

1.Investment Flexibility

The most important and unique feature of a ULIP policy is its flexibility. Based on your risk-taking ability, you may choose the type of investment for yourself. 

Some might go for more debt, while some may opt for equity. This feature gives you an option to select your policy basis and the financial risk you can bear. 

2.Longer Lock-in Period

With ULIP insurance, you invest your funds for a longer period of time. The more the investment lock-in period, the higher the returns. The minimum lock-in period for ULIP is about 5 years.

3.Flexible-Premium Payment

Various premium payment options are available under a single ULIP policy. Mainly, payments can either be single, limited or regular, based on the policy buyer's decision. One-time premium payment translates to an investment with a single lump sum amount to be paid. On the other hand, periodic payments give you the choice of monthly, quarterly, or annual investments.

4.Better Liquidity Facility

ULIP plans offer higher liquidity because of their partial withdrawal facility. Once the lock-in period ends, you can start withdrawing from the collected amount. This is a quicker and easier process as opposed to other investment options in the market.

ULIP Policy Flexibility at Play

A Unit Linked Insurance Plan helps in wealth creation through its multiple flexibility options. When you buy your ULIP plan, the best available option at hand is the ability to tailor your investment. Here are the benefits of flexibility offered under the ULIP policy:

1.Diverting Premium

Taking equity, debt, or a mix of both does not mean that you cannot choose a different option later. In case you wish to change your fund investment, you can easily do so. The premium you pay will be redirected to the next chosen fund.

2.Partial Withdrawal Facility

After your lock-in period ends, you can withdraw your funds if you wish to. This facility eases your financial burden and helps in fulfilling your short-term financial needs.

3.Upgradation in Fund Selection

If you want to add more funds to your pre-existing fund allocation, a ULIP plan allows you to do so. You can choose to add more funds to the existing policy without making any changes to it.

Boosting Your Wealth With Smart Investments

Your wealth is your most important asset, and a ULIP policy ensures that your assets are safe, secure, and appreciated. Offering several flexible options in its policy, this insurance gives you the opportunity to multiply your finances over time.

If you want to try this insurance, head to Canara HSBC Life Insurance. Their Unit Linked plans ensure that your funds are safe and secure, and offer a portfolio management facility too.

Enhancing your returns along with minimal charges certainly helps in easing your financial burdens. Visit their website to explore their ULIP plans now!

Disclaimer:This article is sponsored content curated by HT Syndication. The inputs and details accounted for in the article do not necessarily reflect those of HT, and HT does not endorse or assume any responsibility for the information provided.