ULIPs are a type of investment product that combines life insurance with equity and debt market investments. ULIPs provide both life insurance and investment opportunities to grow your money over the years. The policyholder can select the amount of life insurance coverage they require, and the premium paid to the ULIP is used to provide this coverage.
ULIPs provide investment options that are flexible. Depending on their risk tolerance and financial objectives, policyholders can invest in equity, debt, or a combination of the two. They can also choose between various investment options based on their needs. Further, ULIPs provide tax advantages under Section 80C of the Income Tax Act. Premiums paid for ULIPs are tax deductible up to a certain limit, which can help reduce the policyholder’s tax liability.
Through market-linked returns, ULIPs offer the chance to build wealth. The policyholder may be able to receive greater profits from a ULIP investment than from more conventional insurance policies. However, the costs associated with ULIPs, such as mortality, administration, and fund management fees, should be taken into consideration since they may lower the returns on the investment. Also, when making an investment in a ULIP, it’s critical to comprehend the risks associated and the policy’s terms and conditions.
This story is from the April 2023 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the April 2023 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Why Should One Consider Investing in a Largecap Fund?
An investor’s ability to create wealth in the longterm is directly linked to how well they create an all-weather investment portfolio.
Meeting Medical Costs with Health Insurance Plans
A medical emergency can occur at any time and to any person.
Water: The Elixir of Life
If there is magic on the Planet Earth, it is contained in water - Loran Eiseley.
The 100 Crore Wealth Legacy! A Vision
Generating 100 crores from modest investments is feasible with a long-term outlook, though market timing remains elusive.
Unleashing Potential: The Dynamics of AI in India
After attending the Microsoft AI Tour recently, I attended a few conferences and met with some government officials over the past few weeks during my macro tour.
The Growing Role of Philanthropy in Wealth Management: A Shift Towards Purpose-Driven Strategies
In recent years, India’s economic landscape has seen a notable shift with the rise of High-Net-Worth Individuals (HNWIs), who are reshaping the financial ecosystem.
Are You Drinking Too Much Coffee? If Yes, Then You Are Taking A Big Risk!
Coffee contains caffeine in maximum percentage:
LIC MUTUAL FUND
According to World Bank data, women represent 49.7% of the world population. In India, women represent 48.4% of the population but they contribute only around 18% of the GDP compared to 41% in China.
Maintain 15-20% exposure to US funds in your equity portfolio
2022 was a difficult year for stocks in the United States (US), particularly for the large tech companies known as FANG. Concerns about the Russia-Ukraine conflict, inflation, etc led to a significant drop in their values.
Systematic Investment Plan (Sip): Meaning, Benefits, How It Works
We all dream of buying a car, dream house, gadgets, etc. This all can come to reality if we have strong financial planning. One of the best options is to start investing in mutual funds through a SIP (Systematic Investment Plan).