3 ways in which a ULIP can be your best investment this year

ULIPs create a simple pathway for future wealth. Let’s look at the reasons why a ULIP should be a part of your investment portfolio.

The primary purpose of any investment is to offer growth while greatly reducing any element of risk associated with it. But many investors look for zero-risk investments: these simply do not exist! At best, you can look for a low risk, high growth option like the ULIP (Unit Linked Insurance Plan) that meets your needs.

Investing on the markets is a tricky game, and the novice investor can be suitably boggled by the jargon and various sums of money involved. This is why a ULIP policy is a useful tool: it is professionally managed by a fund manager, and all you need to do is pay the yearly premium till plan maturity.

The best Unit Linked Insurance Plans in India offer high growth at affordable premiums.

Why you should buy a ULIP policy: 3 best reasons

ULIP policies have gradually gained importance in the minds of investors in India, owing to their wealth-creating properties. The best ULIP plans can help you realise many future goals, and the policy can grow with the right handling. When you pay the premium towards the ULIP plan, it is split into two parts: One, to pay the yearly premium, and two, to invest in high grade market-linked securities.

These are 3 ways in which the best ULIP policies constitute a wise investment choice:

1. They offer the dual benefit of protection and capital appreciation. You can choose the proportion of exposure to equities and debt markets when you buy the ULIP plan. Thus, you can influence the course of your investment and gain the traction from it that you seek. Also, you get wealth creation with valuable life coverage. Do note that if you do not outlive the plan tenure, all the plan benefits are passed on to your family members.

2. It shows lower risk with high gains. The best ULIP policy invest your money in high grade securities. Thus, the chances of the investment failing are automatically negated. The best ULIP plans in India continue to register growth of 10% and higher, with ULIP returns stable when the markets perform well. Do use a ULIP calculator to periodically crunch the numbers.

3. You can switch units at a later date. Another key benefit of the ULIP policy is that you can choose to change the existing units for other, better performing units if you feel that the investment is not performing as well as it should. This way, you have a direct say in how the policy performs.