If you are serious about enjoying a better future and ensuring that you provide for your loved ones it is abundantly clear that you have to plan ahead. Taking out life insurance is a real no-brainer as it covers all the bases when it comes to having that all-important safety net if something unexpected happens to you and you are no longer around to support your family. In addition, a ULIP plan adds a new dimension to your saving profile and helps provide a platform to boost your savings and potentially take your investment returns to new levels.
How to get Assured Life Cover + Better returns with 4G ULIPs?
Here is a look at how 4G ULIPS can help you save for some specific future investment goals.
How to get Assured Life Cover +Better returns with 4G ULIPs?
1) Plenty of time for your money to grow
Unit-Linked Insurance Plans (ULIPS) are insurance plans that provide you with a platform in which to invest in the stock market through a variety of balanced, equity, and growth schemes.
Invest 4G, for example, provides protection features alongside the opportunity to invest your funds in a choice of between seven different funds and to make use of four specific portfolio strategies.
ULIPS have a lock-in period of five years and that can be viewed as a good thing because it instills a savings habit in you and provides time for your money to grow. However, a product like Invest 4G does give you the option of partial withdrawals if you are faced with an unplanned financial commitment that you have to deal with.
2) Advantage of investing in equities of 4G ULIPs
One of the good reasons why ULIPS should be on your investment radar is that they, arguably, have an advantage over some other insurance products because it provides you with access to equities, which have the capacity for exceptional growth if you pick well.
What happens when you pay your premiums is that these funds are subsequently invested in a mixture of asset classes chosen by your provider but based on your fund preferences.
You also have the option of switching funds if you change your risk preferences or simply want to take advantage of a change in market sentiment.
You may like: What is ULIP and how does it work?
3) Take advantage with regular monthly premiums
There are two specific ways to invest in a 4G ULIP, either by making an annual lump-sum payment or via a monthly payment.
It often tends to work out better to invest monthly as it takes away the strain of getting your timing right when it comes to the value of the fund at the point you commit your cash.
This monthly investment strategy often wins the argument because it averages out the units of a fund over a longer period, meaning you buy more units one month and less at other times when the price of each unit has risen.
The death benefits attached to a 4G ULIP are also a key selling point as your family will receive the fund value or 105% of all the premiums paid to that point, whichever is the greater.
The message seems clear, if you want better returns combined with assured life cover you should take a look at what 4G ULIPS have to offer.
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Suresh KP
How to get Assured Life Cover + Better returns with 4G ULIPs
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