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ULIPs - Wise Investment Option For The Smart Investor

Published On Jun 26, 2021, Updated On Jun 29, 2021

ULIPs are a great way to unlock the benefits of both investment and insurance cover. They are popular as a great investment tool among the investors for promoting investment habits providing flexibility to investors. 

Therefore, these plans do not stress out the investors as they are available for your next investment whenever you are ready.

The investment can be done on regular intervals which make it more accessible for investors. 

In this article, we have compiled several benefits of ULIPs that make them the perfect Insurance plan for you.

Benefits of Investing In ULIPs

Following are the benefits of Unit-Linked Insurance Plans ( ULIPs): 

  • Life Cover Benefit

ULIPs have a great way for accounting for the financial security of the investor. While investing in the plan, you can also avail the benefits of a life cover in case of unfortunate contingency relating to your life. It helps prepare for the future and the present by nurturing the investment component and also offering death benefits to the policyholder.

  • Tax Benefits

Tax benefits are an inbuilt feature of Insurance plans.Hence, tax exemption under  section 80C of the Income Tax Act, are permissible on ULIPs. This is applicable on the premiums that paid under this plan. Additionally, tax benefits are also applicable on the maturity benefits.

  • Collateral Facility

In cases of unfortunate contingency, ULIPs allow the policyholder to proceed with a loan against the policy. The additional benefits that tag along are lower interest rates, less paper work on loan. These plans function well as collateral facilities and come in handy when you need abundant financial support.

  • Partial Withdrawal Clause

ULIPs are equipped with a partial withdrawal advantage. This basically implies that you can withdraw a specific sum from your current  reserve. This clause is by and large permitted after fruition of at least two consecutive years. This assists you with meeting impromptu monetary prerequisites without turning to your other assets and resources.

  • Transparency

As compared to other Insurance plans available, the working of ULIPs is straightforward and empowers you to settle on smart choices.

ULIPs function on the concept of transparency which enables policyholders to locate their investment and accommodate them accordingly.


ULIPs can prove to be an ideal investment option suited to your long-term financial goals. ULIP has some exemplary features, as mentioned in the above article, that make it a suitable option to add to your list of worthy insurance plans.

Also read 

How To Invest In Equity Through ULIPs?

Different Uses of ULIPs

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.                  

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