ULIP is the most desirable choice when it’s come to investment and insurance schemes. It is a multifaceted scheme that contains the benefits of both insurance and investment plan in a single package scheme.
The demand for ULIP plans gets even higher because of the rise in inflation rates in India and lower Returns offerings by fixed deposits. Average returns from Fixed Deposits have almost fallen to 4.36% while ULIP still offers 8.09% consecutively for the past 3 years.
ULIP is a far better choice when it comes to tax savings. Suppose an insurance cover is 10 times the annualized premium, then after the maturity period insured gets the whole amount completely tax-free in ULIP. An insured person can not only change the asset mix as per market returns but also change the investment aspects like from equity to debt and vice versa for as many times as the insured want and that too is tax-free.
Let’s cover more unique features of ULIP in detail that makes it desirable in the current scenario.
Table of Contents
Features of ULIP
ULlPs comes under EEE product
The triple Es in EEE products defines Exempt-Exempt-Exempt products. It means that these types of products are free from any liabilities imposed on them. And It implies that a ULIP plan is eligible for a tax deduction during all three stages that are investment stage, earning stage, and as well as withdrawal stage. It is one of the unique features of ULIP for which it is preferred over other insurance schemes.
ULIPs provides higher returns in the long term
Although ULIP plans can be brought for any duration of time. But they provide impressively higher returns when enrolled for a long-term duration. The real reason behind this is that in a long-term duration the Investments made in the market return higher gains reducing losses incurred by short-term market volatility and fluctuations.
Flexible as per your risk compatibilities
ULIP provides the most flexible risk averaging options in comparison to any other Insurance Scheme. Almost all best ULIP plans come with the flexibility of tax-free asset mixing and portfolio investment changes between equity, debt, and even balanced funds depending upon the returns that the insured wants to withdraw from the market.
One-time investment in ULIPs
In a single premium ULIP, there is a facility To pay the lump sum amount of premium at the time of buying the ULIP plan. And after that one can enjoy the policies of that plan over the whole period until the plan matures. It is the best choice if one is looking for a lump sum investment along with the feature of long-term wealth creation within a span of 5 to 10 years. The insured gets additional benefits too that is common for all ULIP plan holders.
Get returns from insurer dividends with ULIPs
In a participating ULIP plan, the insured person can also enjoy regular returns as gains as dividends from the profits of the insurance company. The returns percentage is directly dependent on the products of the insurance company and hence vary from company to company. In this way, the insured person gains extra benefits on a regular ULIP plan.
Best Tax Saving ULIP Plans in India
INVEST 4G by Canara HSBC Oriental Bank Of Commerce
INVEST 4G by Canara HSBC Oriental Bank Of Commerce is one of the best ULIP plans considered by most of the citizens of India due to the Expertise for higher Returns possible because of an alliance of three large banks are Canara, HSBC, and Oriental bank of commerce. This plan comes with investment and insurance benefits as a dual benefitULIPplan. It is an optimal choice to invest for creating long-term wealth with higher returns added at regular intervals to your account.
The INVEST 4G ULIP plan offers 7 different funds and 4 portfolio strategies to select the best funds to maximize your returns. One can also have the flexibility to change within different funds. Apart from these functionalities it also provides several benefits like death benefits, maturity benefits, life options with premium funding benefits, return of mortality charge, loyalty additions, and much more.
LIC Market Plus-I Growth Fund
LIC Market Plus-I Growth Fund is a ULIP plan that provides a vast variety of functionalities as expected from the largest insurance agency of India. It is primarily designed for retirement and offers the insured to pay the premium amount that is satisfactory for themselves without imposing an amount from their side. It is a unique feature that comes with a ULIP plan.
The insured can also pay their premium payment as a one-time payment under a single premium option. The insured can select the plan without life cover. Apart from the usual benefits that allULIPplans hold, the insured also gets the benefits of participating options where they get gains as dividends from the profit of the insurance company.
HDFC Click 2 Wealth
HDFC Click 2 Wealth is a non-participation type ULIP plan that can generate greater financial backing enough for the insured as well as their family because of their higher return rates from usual ULIP plans. It is an optimal choice for children protection, family protection, post-retirement income, and long-term wealth creations.
ThisULIP plan comes with several benefits like Invest plus options, death benefits, maturity benefits, premium waiver options, tax benefits, golden years benefits, etc. that help you with making a large financial corpus for all your and your family’s future goals and requirements.
Edelweiss Tokio Life Wealth Enhancement (Ace)
Edelweiss Tokio Life Wealth Enhancement (Ace) is one of the best ULIP plans under single premium payment options plans. It provides a unique feature of guaranteed additions in the 8th policy year for in-force policies. There are 5 different fund options available in this plan that are Equity large-cap, Equity top 250, Bond, money market, and managed funds.
This plan also provides the facility of top-up premium payments and also an insured can withdraw maturity benefits at 2,3,4 or 5 years with settlement options in installments.
The death benefits are also included where the insured gets 105% of the annual premium paid in all the policy years. It also comprises tax benefits on premium payments, return gained, and as well on withdrawals under Section 80C and claims under Section10(10D) of the income tax act.
The Takeaway
Many people are invested in Unique plants because of their unique feature of creating wealth through investment and protection of life through insurance aspects under the single policy.
There are various other unique features of ULIP too that are higher gains, EEE product functionalities, etc that are mentioned in this guide. These features stand out for ULIP plans as one of the best for wealth creation and insurance benefits.
This guide helps you with all Features ofULIP plans along with the details of the best ULIP plans available in India.
