Until recently, the life insurance market had been dominated by straightforward term and endowment plans. Today, it’s increasingly opening up to other opportunities that make it more appealing to clients. Among these new advancements are Unit Linked Insurance Policies. These policies have caught on so rapidly that if you ask anyone that has signed up for a life insurance plan in the past few years, they will likely tell you their cover is a ULIP.
ULIPs are more than just life insurance policies in that they give you the chance to invest in money markets while at the same time covering your life. The premium you pay is divided into two, and one part covers risk to life while the other goes towards investments.
ULIPS presents some inherent benefits over other investment options. Below are five convincing advantages of investing with a ULIP.
ULIPs provide life insurance and savings from market-linked returns, but the best part is that the amount you choose to invest is entirely up to you. With a good life insurance provider, you can invest even 100 percent of your premium, and later allocate an additional amount to your policy to suit your protection needs, such as marriage or the advent of kids. Moreover, you can choose the investment strategy that works for you, be it letting your provider manage your asset allocation or managing it yourself, based on your profile and risk appetite.