What Are ULIP Plan Online?
ULIP plan online are dual-purpose life insurance policies that provide safety and security to the loved ones of the insured in case of his sudden death (insurance-based) and solve the purpose of risk-free saving and investment options. This is an attractive insurance plan which has gained momentum for being a lucrative investment scheme and for providing insurance to the individual.
A good plan comprises various features and benefits of getting tax deductions, maintaining a sustainable and sufficient corpus to meet the unforeseen emergencies of life, and protecting the interests of the loved ones and dependent on the bread earner of the family in case of his demise. It is a shield that protects the insured and his family against unexpected contingencies and also helps him in meeting long-term goals like the marriage of his children, meeting medical emergencies; maintain a retirement fund for a smooth old age, and paying for higher education of his children.
For whom is the ULIP plan online most suitable:
A ULIP plan online is for anyone and everyone interested in both the purposes – investment and insurance. It could be for a young fresher or an old senior citizen. Several financial objectives need to be achieved in everyone’s life and he must be ready to achieve these goals. ULIP plan online is suggested to people who:
- Want to invest their income in a plan that has low risk and who is looking for both investment and insurance.
- Want to invest in ULIP plan online keeping in view their long-term goals and want to earn a lump sum maturity amount.
- Want to save small bits of money over a long tenure and earn tax benefits, a good maturity amount with the low-risk factor.
- Don’t want to take any kind of risks and want a sure-shot assured maturity or death benefit arising out of their investments.
- Want to invest in market-related funds, take some risk, and earn a higher return on investments.
Benefits of Investing in ULIP plan online:
There are various advantages of investing in ULIP plan online like:
- Life Insurance Benefit or Death Benefit: An assured and guaranteed lumpsum amount will be paid out to the family/beneficiaries/nominee of the insured as a death benefit in case of his demise within the tenure of the ULIP plan online. There is no risk attached and bonuses may or may not be covered as earned by the policyholder. There is no risk in this investment and no variation can be made in the death benefit.
- Maturity Benefit: In case of the survival of the policyholder, again the basic sum assured as covered under the ULIP plan online will be paid out to the insured after a specified tenure as it was fixed initially. If during the tenure, the insured continues to pay his premiums diligently and does not falter on his payments; the sum assured remains safe and is paid out. This final pay-out can also be higher than expected if any kind of loyalty or reversionary bonuses have been earned by the insured during the tenure of the plan. The maturity benefit depends on various factors like policy tenure, policy premium and the term for premium, the age of the policyholder, and his gender
- Investment Benefit – The ULIP plan online also gives the option of building an investment corpus for the investor who wants to invest his funds in market-linked equities and mutual funds. In this case, the premium paid towards the ULIP plan online is divided into two parts out of which one part is kept for the insurance and the other is used to invest further. These could be high-risk investments but also ensure a high rate of return.
- Tax Exemption Benefit – Tax benefits can be earned at the inception stage of the policy when it is bought, accumulation stage that while the policy is going on and the premiums are being regularly paid towards it and, and also the maturity stage, as many ULIP plan online come with a tax benefit on the maturity amount. This is all covered under section 80C and 10(10)D of the Indian Income-tax Act, 1961.“The tax benefit is subject to changes in tax laws”
- Loan Benefit – After maintaining a relationship with the insurance company and after paying the annualized premiums regularly for a minimum of three years a surrender value will be generated on the ULIP plan online. Inca e of financial emergencies, 90% of this surrender value can be taken as a loan with a substantially low rate of interest and can be paid out during the tenure of the policy. If the insured fails to pay the loan amount the pending amount will be deducted from the maturity or the death benefit as the case may be.