You must be wondering how smart your children are and how they are learning so much beyond their years. For instance, ask your child to open an app on your smartphone, and they would do that in a jiffy.
Studies show that young children are smarter than adults and can imagine, observe and learn new things. If your children are this intelligent; therefore, don’t you want to make sure that they achieve greater heights in their lives?
You know how important a role does education plays in helping your children accomplish their dreams, which is why you should make the best arrangements for them. It would help if you prepared financially to support your child’s education, especially since the high cost of education these days is steep.
One of the first steps that you must take towards financial sustenance is invested in the right instrument that can help you maximise your savings while protecting you against contingencies. This is where investing in a ULIP makes sense.
What is ULIP?
Unit Linked Insurance Plan (ULIP) is an insurance cum investment plan that provides high returns on your investments and tax benefits, along with comprehensive insurance coverage. Under this plan, a part of the premium you pay is invested in different profitable fund options.
ULIPs, especially child plans, allow you to create a corpus that helps support your child’s education, even after your untimely demise. These plans have a mandatory lock-in period of 5 years, exceeding which the returns are substantial. Another benefit of a ULIP plan is that your investments remain protected against market volatilities, as you have to flexibility to switch between available fund options as per your risk appetite and market performance.
Now let’s look at how ULIP can benefit your child in meeting their goals-
Benefits of ULIP
- Creates Wealth
Whether your dream is to send your child abroad for higher studies or to go on a world tour, you will need a significant amount of money to meet such life goals. ULIPs help you create wealth by investing a part of your money into different market-linked instruments such as equity, debt, or balanced funds.
Disciplined, long-term investments are key when it comes to earning high returns from ULIPs. Moreover, another benefit of ULIP is that they provide a maturity benefit after the completion of the investment term, which is tax-exempt under Section 10(10D) of the Income Tax Act 1961. Thus, you can be sure that your investment returns are not only maximal but are also free from taxation.
- No Compromise on Security
ULIP ensures that in a bid to achieve your dreams, you don’t let your family remain insecure or unprotected.
The insurance component of the plan provides your family with a comprehensive insurance benefit in case of your unfortunate demise. The corpus will help ensure that your family’s financial stability and aspirations remain protected from hardships in your absence.
- Meet with Sudden Financial Needs
ULIP is although a long-term investment plan, that comes with a lock-in period. However, once the lock-in period is over, then this plan offers you the flexibility to making partial withdrawals of the accumulated wealth. The functionality to make partial withdrawals comes in handy in case of emergencies such as sudden car repairs or medical treatment requirements.
- Tax Benefits
One of the most crucial benefits of ULIPs is that you receive tax deductions up to Rs. 1,50,000 on the premium paid towards the plan. Thus, you can lower your tax liability on a year-on-year basis while making sure that your child is on the right track towards meeting his or her goals.
Invest in ULIPs and support your child’s dreams with the right instrument
When we talk about the benefits of ULIPs, these plans provide all-around wealth creation and contingency planning opportunities; thus, making them the right choice for you. ULIPs from reputable insurers such as Max Life Insurance not only allow you to maximise your savings to create wealth but also provide full life and financial security to your loved ones.
Buying the best ULIP policy in India may be the perfect bridge that can help your child reach their goals. The sum of money you receive in the end will be an ideal reward for the planner and investor in you.
Don’t let your child’s dreams remain unrealised because of financial constraints. Look for best ULIP policy in India and buy it at the earliest, so, that your child can follow their passion and you can be assured as parents that your child is secured against all contingencies.