3 Top Ways to Invest in the Best ULIPs at a Lower Cost
ULIP insurance or Unit Linked Insurance Plan is an insurance policy or plan that gives a dual benefit to the policyholder. With ULIP, one can invest to meet their long-term or future goals as well as secure a life cover for one’s loved ones in case of any unfortunate circumstance.
The premium paid for ULIP is allocated in two different ways, i.e. a part amount goes into the insured’s life cover, and the remaining part can be invested by the insured in the fund of their choice. The insured can invest this amount in either debt, equity or in combination, depending upon their goals and risk appetite. Hence, this is why people prefer to opt for ULIP plans.
In addition to financial security, ULIPS also impart additional benefits. The best ULIP investment plan helps the policyholder in gaining market-linked returns. The policyholder gets higher returns when the market conditions are favourable.
We have listed the 4 best ways with which one can invest in the best ULIP plans at a low cost as well as maximise profit at the same time.
4 Ways to Get ULIPs at a Lower Cost
Here are the four ways to get ULIPs at a lower cost:
- Invest with a long-term perspective
You can choose the ULIP insurance as per your preference. You need to be patient with the ULIP investment. To get good returns out of the best ULIP investment plan, one needs to invest with a long-term perspective. A ULIP insurance policy must have at least a 12-year holding period. You should also prepare to understand market trends on both the equity and debt fund sides. You can make sound financial decisions while crunching numbers to find the best ULIPs.
- Purchase the ULIP insurance online
There are several ULIP plans that are offered by different insurance companies. For example, the Param Rakshak Solution policy by Tata AIA Life Insurance is one of the best online ULIP plans that give lump-sum benefits, market-linked returns, accidental death benefit and accidental permanent and total benefits to the policyholder.
Similarly, there are several other ULIP plans that one can check online and thereafter take a decision. Moreover, one can use tools to track specific market trends to invest wisely. Buying ULIPs online saves the policyholder from paying premium allocation and policy administration fees. Premium allocation charges for offline ULIPs can range from 5% to 20%.
- Find a medium between low-cost investment and high returns
It is best not to be enticed into low-cost investments that may jeopardise your expected gains. You must concentrate on both the behaviour of the ULIPs and the amount invested. The secret to effective ULIP investment is striking the correct balance between saving and investment. Young investors can invest less and reap significantly higher returns in their 20s or 30s. When you’re in your 50s, you can take advantage of the low-cost ULIP policy without worrying about losing your money.
Buying a comprehensive life insurance plan can help you in forming tax-saving strategies. The death benefits under comprehensive life insurance come under tax exemptions. These tax-saving insurance plans can assist you in obtaining a tax deduction of up to 1.5 lakh under Section 80C. Moreover, it is advisable to choose a policy that holds the cover of at least ten times your annual premium.
Comprehensive life insurance and investment plans are gaining popularity nowadays. It is a very safe investment policy that offers complete financial stability. However, you must consider the above-mentioned tips to make the most of ULIP insurance. Follow the tips one by one. Choose a high-life coverage and a long-term plan. Buy the policy online to save on premiums considerably. By following this approach, you can get the most out of the ULIP policy at a low cost.