ULIPs are one of the best tax saving investments for people under 45 years of age
BI India BureauApr 6, 2018, 02.58 PM

Read full story
As the New Year approaches, most salaried individuals will be on the lookout for tax saving investments.
Most people make the mistake of having a portfolio which is dominated by a single asset class. It’s important to understand that a single asset class can’t deliver the great result compared to that of a well-balanced investment mix.
For increased results from your investments, it is necessary to create a responsible assortment of asset classes made up of Equity, Debt and Gold.
From SIPs to TIPs, most investments offer tax benefits, but a new type of investment is catching the eye of the investor for providing increased tax- saving benefits.
A Unit LinkedInsurance Plan or a ULIP is a financial product offered by insurance companies that gives aggressive investors both insurance and investment under one plan.
ULIPs are one of the best tax saving investments because not only are the premiums paid eligible for tax deduction under section 80C, but they also help investors below the age of 45 to get great returns:
It gives good returns
ULIPs allow you to invest in a range of equity funds. Equity has given the best returns over the long term (greater than 5 years). They also have the unique ability to offer 80C tax saving on investments made in debt and balanced funds. No other investment allows 80C tax saving in these asset classes.
You can also switch between these funds at no extra cost and still get the benefits of 80C tax saving.
Can change between monthly and yearly investments
If you want to get the maximum tax benefit in this financial year, it might be best to choose a yearly mode of premium payment.However, with ULIPs, you can change your mode of payment to monthly which is much more convenient way of investing.
Tax benefits on maturity
The maturity amount on ULIPs can be withdrawn tax free. No other instrument that invests in debt /balanced funds can claim tax free maturity.
Life Cover
ULIPs come with an in-built life cover element which is ideal for someone in the first 5-7 years of their professional career.
Goodlong term investing tool
The best financial planners are those who invest for the long term. While one can always invest in liquid investments, at least 30% of one’s total investment must be in long term investment instruments and ULIPs by design come with a 5 year lock-in that inculcates the habit of long term investing.
The best part about the Unit Linked Insurance Plans are that they are now easily available to buy at any of the trusted insurers websites. In fact, we've made it much easier for you to calculate your monthly premium right here:
Disclaimer: The quotes are indicative and TIL bears no legal liability for the calculation.
(Image Credits: Policybazaar.com)
Most people make the mistake of having a portfolio which is dominated by a single asset class. It’s important to understand that a single asset class can’t deliver the great result compared to that of a well-balanced investment mix.
For increased results from your investments, it is necessary to create a responsible assortment of asset classes made up of Equity, Debt and Gold.
From SIPs to TIPs, most investments offer tax benefits, but a new type of investment is catching the eye of the investor for providing increased tax- saving benefits.
A Unit Linked
ULIPs are one of the best tax saving investments because not only are the premiums paid eligible for tax deduction under section 80C, but they also help investors below the age of 45 to get great returns:
It gives good returns
ULIPs allow you to invest in a range of equity funds. Equity has given the best returns over the long term (greater than 5 years). They also have the unique ability to offer 80C tax saving on investments made in debt and balanced funds. No other investment allows 80C tax saving in these asset classes.
You can also switch between these funds at no extra cost and still get the benefits of 80C tax saving.
Can change between monthly and yearly investments
If you want to get the maximum tax benefit in this financial year, it might be best to choose a yearly mode of premium payment.However, with ULIPs, you can change your mode of payment to monthly which is much more convenient way of investing.
Tax benefits on maturity
The maturity amount on ULIPs can be withdrawn tax free. No other instrument that invests in debt /balanced funds can claim tax free maturity.
Life Cover
ULIPs come with an in-built life cover element which is ideal for someone in the first 5-7 years of their professional career.
Good
The best financial planners are those who invest for the long term. While one can always invest in liquid investments, at least 30% of one’s total investment must be in long term investment instruments and ULIPs by design come with a 5 year lock-in that inculcates the habit of long term investing.
The best part about the Unit Linked Insurance Plans are that they are now easily available to buy at any of the trusted insurers websites. In fact, we've made it much easier for you to calculate your monthly premium right here:
Disclaimer: The quotes are indicative and TIL bears no legal liability for the calculation.
(Image Credits: Policybazaar.com)
{{}}
More from this author
Related Stories
Recommended Read
The BJP earned over four times as much the Congress in 2016-17
No one seems interested in buying Air India
Why Google is launching the Home speakers in India
Ten years on, the Indian army soldiers will finally get new bulletproof jackets
Crypto Angadias: RBI's crypto ban might incentivise human tellers for cryptocurrency transactions
Indian Bitcoin guru arrested for ₹2000 crore ponzi scheme
The Reserve Bank of India left rates unchanged because, like us, it’s uncertain about a lot of things
India in no 'rush' to sign a post-Brexit trade deal and will tell Britain to accept more migrants
Comments ()
SIGN IN WITH
FacebookGoogleEmail