Business and Finance Blog

Insurance is a term that means ensuring lives or any objects through any miso happening caused by any man-made disaster or natural occurrence. Life insurance was the first thing that came into existence and of all the life insurances term insurance and ULIP’s is the most preferred one. ULIP or unit liked insurance plans are insurance plans that protect your life as well as is a source of future investment for your goals.

Unit linked insurance plan is of a certain period and that period is known as the maturity period. A person gets amount after the maturity period or after the death. The family will receive the amount after the death of the person and that amount is known as the sum assured. They are the kind of protection and saving plans. This is because it’s a combined benefit of protection and saving of money. It increases the habit of saving among a person. The whole concept of insurance runs on premium. Premium is the basic amount paid by the insurer to the insuring company either monthly or yearly which gets accumulated and gets refunded wither after the death of the person or the term he has subscribed for.

You pay a premium and after the maturity period, you get the summed amount, which carries a good rate of interest too. Insurance is subjective in nature and it has no age boundation. You can get your life insured from the day of your birth or later whenever you feel like in your life. The amount of premium depends upon your age and maturity period

Benefits of buying a ULIP:

Tax benefits: Every type of insurance carries a certain type of tax benefits. As per the government rule under section 80-C, there is a rebate on tax on some prescribed amount of insurance.

Habit of saving: ULIP increases the habit of savings in a person. As you keep paying premium your money gets secured with a good amount of interest. No doubt, it’s a good habit of saving in a long run.

Protection: The basic and the foremost benefit of a ULIP is protection. ULIP’s not only provide protection to your family but also are protection and conformity to your secure future.

Partial withdrawal: this option is available only in some types of insurances. It allows a person to partially withdraw money in the need of the hour.

Top up: Top up is increasing your investment if you later feel like. You can upgrade your premium plan anytime.

All these benefits tell you why investing in unit-linked insurance plans is a smart move. But there is a question that comes in mind from where to get ULIP/ there are companies that deals in ULIP’s. they have their own norms and their own terms and conditions. You should always go for a company which has a renowned name.  you can go for various strata to check if the company is foundationally strong or not as you can check:

• Claim settling ratio
• Solvency ratio

ULIP is definitely a multi-utility way to increase your savings and at the same time get an insurance policy. It provides both safety and increment.