Wednesday, 26 April 2017

What is a ULIP and Why Should You Invest in it?

The key considerations for any financial planning should ideally focus on the three main aspects of protection, wealth creation, and wealth accumulation. We often see that these things do not generally go simultaneously and especially in the case of insurances. But thanks to ULIPs (Unit Linked Insurance Plans), investors get the benefits of both insurance and investment under a single integrated plan. A comprehensive term plan should ideally include the safety of an insurance plan backed with the growth potential of various investment options. A host of innovative financial products have been devised on the same lines and let us try to understand this with one of the best ULIP plans in India Edelweiss Tokio Life - Wealth Ultima.
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The most convenient way to safeguard and grow your wealth is to investing in a long-term plan on a monthly basis,  setting your goals when do you want to transfer and finally withdraw them. The new-age ULIP from Edelweiss Tokio Life is based on the 3 basic pillars of Systematic Monthly Investment Plan (SMP), Systematic Transfer Plan (STP) and Systematic Withdrawal Plan (SWP). Now let us come to the benefits of this plans:

1) Monthly Investment

It is one of the best ways as investing small amounts on a monthly basis is much simpler than paying larger premiums at once. You can also safeguard your investments from the market fluctuations and reap out the maximum return on investments. To top it all, it is a tax-free investment.

2) Systematic Transfer

It always becomes necessary to systematically transfer your accumulated wealth like the Wealth Ultima which offers you the several options to manage your assets allocation including self-managed strategy. You can choose the options which suit you the best, based on your targets which may be duration or profits based and your risk appetite. Transferring from one asset class to another remains tax-free.

3) Optimized Withdrawal

The most idealistic target for investment should be creating a reliable second source of income after a certain period of time. While it is really difficult for most of us to plan it along with our regular jobs or business,  the third pillar of Wealth Ultima - Systematic Withdrawal Plan explains and implements how your wealth accumulated over the period of time can act your regular source of income. It can also be used as a pension plan and the tax-free withdrawal ensures you a luxurious and smooth retirement.

We all might have different financial targets to achieve like planning for children's higher education, early retirement, and life insurance etc. Considering all the aspects, products like the Wealth Ultima from Edelweiss Tokio Life serves as the comprehensive long term plan which ensures your growth, your family's safety and most importantly, a peace of mind.

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