How To Invest in ULIP at Low Costs?



Securing your future with the right investments is just as important as ensuring the financial safety of your family. Thanks to Unit-Linked Insurance Plans, you can now get a life cover and make investments simultaneously with just one plan. In addition, ULIPs are tax-saving instruments where both premiums and maturity benefits can be claimed under specific income tax sections.

Recently, ULIP investments have become quite famous among investors owing to their flexibility, returns, and other features. Providing the fruitful chance to invest in both equity and debt-oriented funds, Unit-Linked Insurance Plans help you reach your long-term dreams and goals.

In this blog, you will learn a few tips to help you invest in ULIPs at a considerably lower cost.

How to invest in ULIPs at a lower cost?

Here are some tips that will help you get the best ULIP plan at a reasonable rate.

Buy your ULIP plan online.

With the advancement of online infrastructure and the availability of the Internet, almost everything can be bought online today. These days, you can browse through various ULIP plans and start investing with just a few clicks. Since there are no intermediaries involved in the online process, you can opt for an online mode of purchase to avail yourself of a plan as quickly as possible.

As there are no middlemen involved, you will enjoy low premium allocation and policy administration charges online. Moreover, if you choose the online mode to purchase your policy, then you get to explore and compare various plans online. Thereby enabling you to select the best plan as per your budget and other personal requirements.

Invest for the long term.

Unit-Linked Insurance Plans come with a compulsory lock-in period of 5 years. This means you can’t exit your insurance plan before completing this tenure.

Even if you can discontinue your ULIP plan after 5 years, it is recommended for you to continue your investments for a longer time. By staying invested and not taking out your funds, you can get to enjoy higher returns from your investments.

Also, the premium invested towards your chosen funds is less during the lock-in period due to several ULIP charges. Therefore, if you choose to invest in a ULIP for, say 10 years, then the charges will be compensated, and you will get much better returns over the period of time.

Choose a high-value life cover.

Continuing on the above-mentioned point, by investing for the long term, you can accumulate a considerable amount of wealth over time. If you want to reap the maximum benefits from this, then you can choose to invest in ULIPs with high premiums.

Here’s why! You can claim the entire premium amount under Section 80C. Secondly, you can get a higher life cover with a higher premium. Hence, for you, it is a win-win situation. However, please note that you can claim up to a maximum of ₹ 1.5 lakh per financial year. If the annual premium is more than R₹ 2.5 Lakhs, then you won’t be able to avail of tax exemption on the maturity amount.

Follow these tips to maximise benefits from a ULIP.

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