Get One Step Closer To Life Goals with ULIP Policy
To achieve important life goals like purchasing the row house of your dreams, commencing the start-up you have visualised or planning for child’s education, one requires corpus. The good news is that anyone can accumulate corpus by planning smartly on time with a well thought out goal-based investment plan.
Herein comes to play the Unit Linked Insurance Plans (ULIPs) that offer you the chance to achieve your life goals by providing a combined benefit of life cover and investment. Thus, the premiums invested in a ULIP policy have dual objectives. The first is life cover, which provides financial security (based on policy type) to the family in case of the unfortunate demise of the bread winner. The second is Investment, where your money earns market-linked returns and on completion of the policy term, a lump sum amount known as Maturity Benefit is paid. It not only inculcates disciplined investment habit, but also allows investors to explore the power of compounding and take advantage of market growth and invest strategically to meet the life goals.
To illustrate, let’s see how a ULIP helps to save enough for your life goals.
Determine the requirement
Assuming an investor needs money to establish a start-up 10 years from now. With the help of various tools and calculators available digitally, he/she can have an estimate of corpus that may be availed after 10 years for starting the business. Also, considering the capital required, they can find out the amount that needs to be invested in a ULIP today to get the desired returns. Thereafter, the investor can opt for the right ULIP by comparing the fund performances vis-à-vis the benchmarks and the subsequent returns offered by various ULIPs available in the market.
Take advantage of switching facility
ULIP stands out from other insurance products as it allows flexibility to switch between funds as per the risk appetite of investors. This provides an added benefit to make optimal returns through even volatile market conditions. For example, at the time of policy issuance, investor had opted for 70% investment in debt and 30% in equity. When the equity market conditions turn positive, then he/she can switch into equity from debt. Therefore this switching option in ULIPs help an investor to optimize their asset allocation, without any capital gains tax incidence.
Get rewarded for staying invested
ULIPs are long term in nature, stretching for around 10-30 years. As a result, policy holder is rewarded for staying invested for periods of 10 years and beyond,
Today, of the multiple investment options available in the market, the new-age ULIPs are one of its-kind as it encourages goal based savings with its long term systematic investment option. Since long term market investment tend to yield positive returns, the new-age ULIPs are ideal for those who would like to invest for a long term goal.
Amongst the new-age ULIPs, Bajaj Allianz Life Goal Assure offers you two unique features that help you get more for your life goals, be it establishing a start-up or buying your dream home.
Firstly, the Return of Life Cover Charges, where the policyholder will get back the charges 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 instalments (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 instalment.
The other key features of the product are Fund Booster which is offered to investors with policy term of 10 years or more and Loyalty Additions for Annualized Premium of INR 5 Lakhs or more & for policy term 10 years or greater for paying premium regularly and staying invested for the term chosen.
A life goal-based ULIP like Bajaj Allianz Life Goal Assure play a significant role in aiding you realise your life goals and also help you move a step closure towards achieving them.