An ULIP is nothing but a Unit Linked Insurance Plan and as
the name suggests it has got an insurance component and a growth concept to
enhance wealth. Apart from this, investment in ULIPs gives you tax benefit
under Sec 80C of the Income Tax Act. How are ULIPS structured? These give you
savings, insurance and tax saving benefits. The best part is that they come
with insurance. In terms of tax, they not only offer you tax benefits under Sec
80C, but, in the event of death of the holder, tax is not levied on the
nominee.
Also, in the case of lumpsum return, the amount is not
taxed. You can choose the Best Ulip Insurance plan for you in a number of ways.
Here's how?
1) Identify your needs first First, see if you need an ULIP
for retirement planning or for health related issues in the future or for your
child's education. Since ULIPs invest money in stock markets, if your
perspective is rather long-term go for in for one that is equity based. Unit
linked Insurance Plans comes with various options and invest from zero per cent
to 100 per cent in equities.
2) Debt Oriented ULIPs There are such units which invest the
entire money in debt. So, this should be the first priority for those planning
to retire or for those who are less risk averse or by nature who do not want to
take risk.
3) Go For a Balanced
Plan You can also opt for a balanced plan, if you want to end-up being in
between high risk and low risk. If you feel that the investment in the scheme
should be less than 50% in equity make a choice accordingly.
4) Do Not Buy It For Insurance Do not Buy ULIPS for the sake
of insurance. Remember, the protection may simply not be adequate for the
purpose. Go in for a proper term insurance policy, if you wish to cover
yourself with insurance. Also, do not use it as a primary means to save tax.
Use it to meet a long-term objective like retirement or child education needs.
Here is a list of select ULIPS in India. We are just providing a list and this
is by no means a recommendation.
ReplyDeleteThanks For shearing the best blog about Ulip insurance. For more details about Ulip insurance India in india.
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