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Term Plus ULIP Combo Plan For Optimal Returns

Updated On Feb 14, 2024

Whether a person is graduated or married recently, or a young parent, people need to structure the finances to include a term insurance policy that not only offers financial stability, but covers the loved ones from accidents, diseases, and other unanticipated events. Individuals are living in an age of the great paradigm shift, where making wealth out of insurance plans is turning out to be the new normal. The most excellent way to generate monetary returns is to mix a term insurance policy with a ULIP plan. 

Also Read:- How Does A ULIP Work?

Benefit of ULIPs

There are better ways to gain returns from the money an individual has paid for the insurance cover. This is accomplished via ULIP (Unit Linked Insurance Plans) that offers a blend of investment and insurance. As tax planners, one should make sure that they invest in well-planning investment options to ensure that a major part of the salary goes into investment. As a single integrated plan, you get to reap the benefits of investing in capital markets that generate good returns over a period of time, notwithstanding the risk factors.

To get the needed boost to your goal-based financial planning, it is recommended that you opt for ULIP + Term Plan Combo Benefits.

Top Benefits of ULIP + Term Plan Combo 

Term Plans offer adequate risk cover with no returns, while a ULIP plan does offer adequate returns, but the risk cover may not be enough for the future requirements of your family. The best thing of a Term + ULIP combo plan is that it offers the following benefits in one integrated plan:

1. Good Returns

The ULIP plan helps in looking after the returns factor. As a risk cover is offered by investing an amount in the term plan, the rest of the amount can be invested in several fund options present in the market. As your money is invested in market-linked funds for a longer period of time, you get to earn excellent potential returns.

2. Adequate Risk Cover

Term Insurance plans have the exclusivity of being the easiest form of pure insurance where you get the best cover at inexpensive costs. As pure protection plans, their costs are much lesser than traditional life insurance plans, and thus having a term plan in the combo offers the best risk cover out there in the market.

3. Tax Savings

As per the Income Tax Act, you are entitled to get tax benefits on the amount that you pay for your term plan and ULIP combo. Apart from getting the tax benefits on the amount that is paid, you get a benefit of a tax-free maturity amount. Moreover, as per the Union Government orders, ULIP’s have been exempted from the Long Term Capital Gains Tax as well.

You May Also Like to Read:- Difference Between ULIPs And Mutual Funds

The Unique Features of ULIPs


As this post discusses a term + ULIP combo, it helps alleviate losses coming out of untoward events and generates long term wealth for the strategic investor. ULIPs also provide returns associated with the stock market, along with a part of cost allocated towards life insurance cover.

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