What Makes ULIP A Better Tax Saving Avenue

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What Makes ULIP A Better Tax Saving Avenue

ULIP Plans give you the benefit of both insurance and investment

Thursday April 18, 2019 11:23 AM, ummid.com & Agencies

ULIP Benefits

The dynamics of investments are getting radically changed and with more and more people getting inclined towards both securing and growing their money, ULIP Plans come up as the best option for investing. ULIPs (Unit Linked Insurance Plans) combines insurance and investment where the insurer has the option to pay premium monthly, annually or transaction wise. The money is divided into two ways- one part is the premium of the insurance and the rest is the investment in the mutual fund. But the biggest of all advantages are the ULIP Tax Benefits.

Benefit 1: Dual Objective

ULIP Plans give you the benefit of both insurance and investment where you can invest your money in equity and mutual funds besides giving the usual premium of your insurance. In a nutshell, ULIP Tax Benefits includes these two advantages.

Benefit 2: ULIPs Plans are Flexible

The amount of premium for the insurance and that of the investment can be changed by the insurer based on his/her priorities. The flexibility option is also available between the investment funds as well. Even the option of fund withdrawal also comes in ULIP Plans. However, there are certain charges and terms and conditions included within.

Benefit 3: Higher Returns

ULIP Plans Online and offline both gives higher returns because the money investment is done on equity and bonds which is similar to any other mutual funds. The insurance gives you fixed returns, but for growing your money ULIP Tax Benefits are an added advantage.

Benefit 4: ULIP Plans are Economic

As mentioned earlier the investment sector is growing at a fast pace and experts are of the opinion that Online ULIP Plans and offline ULIP Plans are actually cost effective financial decisions as they cost lesser than mutual funds. It is also economic because ULIP Tax Benefits are better than mutual funds.

Benefit 5: ULIPs are best for Long Term Financial Planning

Online ULIP Plans and otherwise, both when adopted for a longer time, the insurer or investor can get very high returns. This is because 5 years is the minimum period of most ULIP Plans. If you have long term goals in buying real estate property or accumulating money for foreign education of your children, then going for ULIP Plans is the best option also because it has ULIP Tax Benefits

It must be realized that though ULIPs are pretty new in respect to that of insurance and mutual funds, within a short span of time it has gained popularity because of its huge tax benefits. It is also getting upgraded and customized regularly to serve the needs of the investors or insurers. So, what are you waiting for? Start investing in ULIPs today and save lump sum on taxes!

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