All parents strive towards providing a financially stable life to their children right from the school days till they get married. is Life is unpredictable, and you never know what the future holds for you. Therefore, it becomes essential to have a foolproof plan that can safeguard your family’s financial future. So, do not let an unfortunate incident, which could lead to your absence, hamper your family members’ quality of life.
Your children have a lot to achieve in their lives. Thus, you need to consider investing in a financial plan that can help them accomplish their goals. It is advisable to invest in a Unit-Linked Insurance Plan (ULIP). Investing in a ULIP policy can prove to be a smart decision, as it is one of the best instruments available in the market today. However, if you are wondering what is ULIP, then read on.
ULIP is a kind life insurance policy, that offers the dual benefits of life cover and investment under a single plan. It provides death benefits to your nominees and allows you to grow your wealth exponentially by investing your hard-earned money in the financial market. With inflation and the ever-rising cost of education, you will feel the monetary pressure to cope with expenses. Also, what if your child wants to pursue higher education abroad? The cost of overseas education can have a massive impact on your savings. ULIP can help you build a corpus that can fulfill your child’s aspirations and help him or her achieve important milestones.
How can ULIP secure your child’s monetary well-being?
Investing in ULIP can protect your child’s future because it ensures:
- Financial stability
By investing in ULIPs, you need not worry about the economic problems that can arise due to your untimely absence. The death benefit received by your family can help to fulfill the key milestones of your child’s life. Besides this, the investment component can let you maximize your investments in equity funds. Therefore, it is recommended to start investing early in life to avail of the maximum benefits from your ULIP policy.
- Higher returns
ULIPs offer better returns than other financial products, like bank fixed deposits, bonds, and government securities. The amount that you will earn in the long run will help you gain a substantial corpus, with which you can transform your life goals into reality. One of the best ways to compare the returns of ULIP with other investment instruments is by using a ULIP calculator.
- Power of compounding
ULIPs can help you reap the benefits of compounding. ULIPs have a mandatory lock-in period of five years, and if you stay invested with a long-term perspective, your funds will compound and grow with time. In compounding, the amount earned from your investments will be re-invested to build your wealth and help you gain a large sum over time.
- Maturity benefits
Many insurance companies offer various types of child-based ULIPs, considering the needs and essential milestones of a child’s life. The maturity of such plans is designed in a way that they can meet your child’s ambitions based on his or her critical ages, like 18, 21, and 24.
As ULIP offers so many benefits, it should be a part of your financial portfolio. It provides cover for your life and helps you earn significant returns from your investments over a long period. It acts as a safety net and ensures that your child’s present and future are financially secured. Besides this, ULIP allows partial withdrawal of funds after the lock-in tenure of five years in case of any financial emergencies. So, what are you waiting for? Use a ULIP calculator and search for a plan that can suit your requirements.