A ULIP Insurance plan works best for a person, whether employed or self-employed, to keep his or her family safe while investing the money in the right place.
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A ULIP Insurance plan gives various options that a person can avail. These options depend on factors like how much premium the person is willing to pay and how much the person seeks to assure the family through a ULIP Insurance plan.
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While some ULIP Insurance plans offer regular income to the family members, many other ULIP Insurance plans ensure that the family gets all the benefits along with the total amount of premium paid by you. This is an added benefit as the family gets more money to keep their life secured in monetary terms.
It becomes important to understand how much premium you must pay for a ULIP Insurance plan to get the desired sum. This is a complete no-brainer now due to the availability of Term Insurance Calculator, a tool that helps you understand how much you need to invest in a ULIP Insurance plan to get the desired amount after your untimely death.
Ways In Which ULIP Insurance Also Acts Like An Investment Plan
It remains a question as to how a ULIP Insurance plan acts as an investment plan as well. There are two ways, to be precise, that tell us how a ULIP Insurance plan comes out with equal importance of being an investment plan.
Helps With Coverage
Investment is all about how much money you have put in to get the desired return after a certain point in time. The same principle applies to the ULIP Insurance plan that provides you the information about many benefits your family will get on termination or maturity of the ULIP Insurance plan.
These benefits ultimately pay off all the liabilities that you would have unknowingly or unfortunately left behind to be fulfilled by the family. Upon calculating the final coverage of the ULIP Insurance plan, you can decide if the sum assured is adequate or not. If adequate, then you can move on to pay a regular premium. If inadequate, then you can revise the calculation before finalizing the ULIP Insurance plan.
Every rupee that you pay as a premium comes back as a huge benefit to your family in the future. It has been rightly considered to be the investment by a person that comes back in the form of financial safety to the family. Every ULIP Insurance plan, including Smart Protect Goal and iSecure, to name a few, ensures that your family remains safe under every circumstance.
The money that you invest in plans other than ULIP Insurance plans depends on various market factors. The difference is that in the ULIP Insurance plan, your investment depends on personal factors. Some of them include your occupation, tenure of ULIP Insurance plan, and final sum assured.
Your occupation, if safe, gives you better options of premium and final sum assured. However, your occupation as a firefighter, pilot, or stunt performer would make you pay a higher premium to get the desired sum assured from the ULIP Insurance plan.
Your ULIP Insurance plan can last for up to 40 years, depending on the plan that you choose. In such a case, your family gets the benefits in the form of a monthly income instead of being paid lump-sum. Also, if you choose to secure a higher sum assured, then your premium would be influenced to be on the higher side.
Affects Residential Budget
A family's budget depends on how much it has to set aside to invest in the ongoing investment plan. The return on investment is also a factor that affects how much a family spends every month. A ULIP Insurance plan is no different.
When you know that you need to set aside, say, ₹4,500/- per annum for 10 years to get ₹75,000/- after 10 years, then you control your expenses in the present while looking to probably re-invest the principal amount. You know how many portions of your income you would have to keep aside to pay the premium of a ULIP Insurance plan.
Every ULIP Insurance plan requires you to pay a premium at an agreed interval. A higher premium tends to leave a dent in the residential budget. It is recommended to secure a ULIP Insurance plan at a young age to keep the premium amount as low as possible. You still need to keep a portion of your budget aside, but the ULIP Insurance plan does not leave a huge impact on your budget.
Your lifestyle determines how much premium you will have to pay on the ULIP Insurance plan. This can be compared to how many risks does the market carry where you are looking to invest your money. If you are a regular consumer of alcohol or a chain smoker, then the premium would be higher because the chances of you living a long healthy life are very low.
This can be taken in the line of the market having numerous fluctuations or volatility. The returns on a ULIP Insurance plan are generous if you survive and not generous if you do not survive.
Your medical history triggers the premium amount of a ULIP Insurance plan as well. If you have been diagnosed with a severe illness, then the premium will be higher. This is similar to a market that has shown concerning trends in the past having a higher amount of investment.
Final Words
A ULIP Insurance plan is similar to investing your money. You only need to have an annual income, the number of working years you are willing to work, how much you spend on yourself, and how much you estimate your income to increase shortly to calculate the premium and the final sum assured.
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