- It allows the investor to switch between funds and match his risk needs.
- It allows the investor to make partial withdrawals; however, it may attract charges and is subject to certain terms and conditions.
- It allows the investor to make single lump-sum additions to their premiums and increase their investments at any point of time, through the facility of top-ups.
ULIPs offer Benefits in the following ways :
- Market Linked Returns: ULIPs offer more than 6-7 types of investment funds to select from. Some of these funds are equity based which offer good market linked returns and increase the overall returns derived from a ULIP.
- Investment with Life Protection: A ULIP offers the dual advantage of life cover and investment. Not only are you secured, but you also have the option to gain higher returns and build wealth.
- Funds for Crucial Milestones in Life: Being an investment cum insurance plan with a long term investment horizon, a ULIP can be bought for meeting the expenses arising out of important milestones in life such as marriage, college education, etc. So, if you have a long term goal for yourself or your family, a ULIP is a good investment plan.
- Protecting your Child’s Future: In case of an unforeseen event which leads to your demise, the ULIP will provide guaranteed death benefit to your wife and child. Thus, your child’s future will not get affected in your absence.
- Financial Security Post Retirement: Retirement is an essential stage of every individual’s life. Over the period of investment, a ULIP scheme will gather enough corpus which can be utilised to live a stress-free life post retirement.