5 Best Ways to Invest Your Money with ULIPs
Choosing the best investment option to meet life goal is often a confusing task for investors. Most people want to invest money, but are risk averse. The volatile nature of stock market creates apprehension while investing in equities. But on the other end of the spectrum, there are debt options available too and we have plenty of investment products between these two extremes. If you are looking for such products in the market, then ULIP (Unit Linked Insurance Plan) is the one of best options available. Just in case you are wondering what ULIPs are, here’s a primer.
ULIPs invest across equity and debt markets to help investors achieve their life goals like funding a business start-up, dream vacation, dream home besides providing financial protection.
Depending on your risk appetite, you can choose a fund that works for you. ULIPs provide you the facility to switch between funds free of cost.
You can also avail tax benefit under Section 80C and Section 10(10) D of The Income Tax Act 1961.
While we have argued that ULIPs are the one of the best investment options that you should opt for to meet your life goals, you would be wondering which ULIP to invest in. We suggest you can look at the ULIP’s offered by Bajaj Allianz Life Insurance as they are backed by consistent track record of investment performance and individual features that bolster the ULIP advantage.
Bajaj Allianz Life Goal Assure
This ULIP can be earmarked for meeting your life goals. It has two standout features. Firstly, the Return of Life Cover Charges, which guarantees that a policyholder will get back the cost of the life cover deducted during the policy term, at maturity, thus enhancing the value of corpus on maturity.
Second is the Return Enhancer. Customers who opt to receive the maturity benefit in installments (and not lump-sum) over a period of five years are entitled to this benefit. Here they get an additional 0.5% hike-up on each installment.
The other key features of the product are Fund Boosters and Loyalty Additions for paying premium regularly and staying invested for a policy term of 10 years and above. However Loyalty Additions are applicable for annualized premium of INR 5 lakh or more. There are also other features such as option to choose from 4 investment portfolio strategies, option to decrease Sum Assured, change Premium Payment Term, and unlimited free switches between funds for customers without any tax liability. To further enhance the value packed benefits, customers can also avail tax benefits under section 80C and 10(10D).
Bajaj Allianz Future Gain
Here, apart from the usual ULIP advantages, you get to choose between two investment portfolio strategies- Investor Selectable portfolio strategy and Wheel of Life portfolio strategy. The first involves you choosing among the 7 available funds depending on your risk appetite. The other option is to let the company automatically allocate your money among various funds based on the outstanding years to maturity. Policy holders can also opt to take maturity benefit in installments payable yearly, half yearly, quarterly or monthly, spread over a maximum period of 5 years.
Bajaj Allianz Life Principal Gain
Two highlights of this ULIP policy from Bajaj Allianz Life Insurance are Guaranteed Loyalty Additions and Guaranteed Maturity Benefit. The plan offers a Guarantee Builder Portfolio strategy. The strategy auto allocates the money into Balanced Equity Fund and Builder Bond Fund, based on the proportion and the outstanding years to maturity. On maturity, you either get the fund value along with guaranteed loyalty additions or Guaranteed Maturity Benefit of 101% of total premiums paid, whichever is higher. There is also the other attractive feature of being allowed to take maturity benefits in installments or as a lump sum.
Bajaj Allianz Fortune Gain
This is a single premium unit linked endowment plan. This plan that requires one time investment provides 3% loyalty addition on maturity. Loyalty Additions are applicable for premium of INR 1 lac & above and a policy term 10 years & above.While you can choose from the seven funds, you can also make partial withdrawals from the sixth policy year. You can also top up the investment with an amount equal to the single premium paid, subject to certain conditions, and take the maturity amount in installments. The plan also offers systematic switching option (SSO) to help investors manage investments better.
Bajaj Allianz Life Future Wealth Gain
You can choose between two variants Wealth plus and Wealth plus Care which provides the cushion of security and growth to meet future financial goals. In addition to the product variant features, the plan also offers two ULIP investment portfolio strategies that allow you to invest as per your risk appetite and also offers you unlimited switches between your funds to help you maximize your fund value. Further you also benefit from the Fund Booster, which is a percentage of one annualized premium that gets added to the maturity value. The plan also offers Loyalty Additions to the Regular Premium Fund Value as percentage of one Annualized Premium at the end of every 5th policy year starting from the 10th policy year. One can also avail the benefit of Accelerated Cancer Cover combined with Income Benefit under the Wealth plus Care variant.
In a nutshell, ULIPs provide you with the perfect answer of how to invest money and where to invest money and help you accomplish your cherished life goals.
Keep reading our blog for more tips & benefits of ULIPs, term insurance & other types of life insurance policies.