Insurance That Weathers A Pandemic – Invest In Ulips!

Amidst this lethal pandemic, the best thing that you can offer your family is financial security. As the times are unprecedented and nobody knows what could happen next, an assurance of financial resources gives a visible light of hope.

Moreover, while there are several financial products available in the market, along with some dedicated ones designed specifically to provide cover against coronavirus, there are several pre-existing plans that may prove to be better for monetary benefits.

One such amazing investment product is Unit Linked Insurance Plans that help you stay safe and secure in these unforeseen times. With these plans, you can save money for any unfortunate situations that might occur due to the virus, such as pay cuts and job loss.

COVID-19 has surely awakened people to start investing to save their family’s future. This article will walk you through the essentials as well as the benefits of ULIP plans amidst the pandemic to help you sustain a comfortable lifestyle.

What Are ULIP Plans? 

 Unit Linked Insurance Plans, abbreviated as ULIP, are financial investment products that offer you combined benefits of savings and life cover. In addition to a standard life insurance policy, you also get to grow your wealth through market-linked returns.

It helps you accumulate a significant amount of wealth by investing your premiums paid towards the policy in your choice of funds while keeping your family’s future protected with a live cover. The benefits offered by ULIP investments are extremely crucial amidst COVID-19.

Here’s a complete list of the benefits of purchasing ULIP Plans in the event of this pandemic:

1. Coverage for Life

One of the main reasons for the immense popularity of ULIP plans is that they invest a part of your premiums for offering you a life cover. With this coverage, in case you die due to COVID-19, before the date of maturity of your policy, your selected nominee will receive the death benefit in lump-sum.

Typically, this tends to be 105% of the total amount of premiums you’ve paid annually towards the policy. In such times when everyone’s life is threatened, this acts as an almost perfect solution to help your loved ones in case any unfortunate event takes place.

Furthermore, as per the mandates released by IRDAI, life insurance companies also provide a dedicated cover for COVID-19, which makes it an even better solution to prepare for any unforeseen circumstances that may occur due to this disease.

2. Opportunity to Make Systematic Investments 

Another reason for the exceptional likeability of ULIP plans is that they also act as highly efficient financial tools for wealth generation. During the COVID-19 pandemic, many people are focused on saving funds to survive through the pandemic, as it’s surely not going to stop soon.

While saving your capital is crucial, you also need to be able to grow it to beat inflation, which is getting worse due to the pandemic. With the help of ULIP plans, you can leverage such volatility of the market and invest your capital in market-linked schemes of your choice.

Additionally, in case your investments are underperforming and not bearing good results, you can choose to switch funds anytime and reallocate your portfolio as per your preferences, which allows you to increase the return percentage on your investments.

3. Enjoy Flexibility in Your Investments 

When it comes to the market-linked investments available in ULIP plans, you have a lot of tweaks to align it as per your preferences. You can easily customize your portfolio and choose to invest in various options such as hybrid funds, debt funds, and equity funds.

Moreover, in case unforeseen times make you change your mind as per the situation, you can also switch to mutual funds allocation at any point of your policy tenure. With such flexible options, you can certainly make your investments worthwhile.

On top of that, as the pandemic is bringing a transition in lifestyle suddenly, the flexibility offered by ULIP plans can help you tackle the various stages of this pandemic and beat the volatility of the market to gain good returns.

4 Save Money on Taxes

While the pandemic is already digging out your pocket due to various unplanned expenses, taxes on top of that can make the situation worse for you. With the help of the tax-saving benefits of ULIP plans, you can develop an additional way to save your capital during this pandemic.

According to section 80C of the Income Tax Act of India, the premiums paid towards the ULIP plans are excluded from taxation worth up to Rs. 1.5 lakhs. Therefore, these not only help you grow your monetary resources but also prevent them from the effects of taxes.

In the long run, when this pandemic ends, this tax-saving tool will prove to be a wise decision of your life because you’ll be able to pass through these unforeseen times without having any degrading impact on your lifestyle and finances.

The Takeaway  

With the benefits stated above, it is certainly evident that ULIP investments are your best bet to tackle this pandemic without having any impact on your financial status. These plans not only help you grow your capital but also provide coverage for your life.

By investing in ULIP plans during such unprecedented times, you can make sure that you provide financial security to your family in the event of your unfortunate demise due to the coronavirus. Therefore, you should consider investing in a ULIP plan.

Before you choose any ULIP investment opportunity available in the market, make sure you understand all the terms and conditions associated with the particular plan to be able to gain the most out of it.

Lastly, if you haven’t already invested in any of the life insurance policies, you should take the step forward as soon as possible and safeguard a prosperous future for your loved ones, and prevent them from getting affected due to the drastic effects of this pandemic.