How ULIPs Help You Make Money Easily
PNB MetLife 18-12-2016 11:59:12 AM
A Unit Linked Insurance Policy (ULIP) is different from a regular insurance policy and provides the investors benefits of both insurance and investment. A certain chunk of your life insurance investment will be channeled towards insuring your life while the other part will be invested in different plans of your choice on your behalf. ULIPS are dynamic and flexible. Additionally, they also help the investor make more money in the long run. Read on to know how:Read More
Though many may find ULIPs a little complicated in nature, but the high yield of returns it offers is something an investor cannot ignore. A good plan is the one which comes at a lower cost and offers good returns. It must also provide a proper disclosure in terms of returns and costs with the benefit of good servicing. So, in contrast to mutual funds, ULIPs have a simpler cost structure. It offers policy holders the flexibility to choose fund options and also feature an in-built range of funds that range from aggressive to constructive. One can decide the range they want to choose based on their investment preferences. A unit linked insurance policy also offers the choice of switching between various fund options so that the investor can reap the most benefits from it.
With Unit Linked Insurance Policy, one can also choose from different levels of risk appetites. On the aggressive side of the graph, the funds are invested usually in equities that improve returns but boost its volatility as well. While on the conservative side, the funds are usually invested in money markets and debts that ensure stable returns and low risk. Thus, depending upon their financial capabilities, one can choose to go for a hybrid plan as well
where a part will be invested in equities and the balance in money markets and debts securities.
Thus, a ULIP is a must have for someone who is looking for a life insurance along which allows part investment as well.