Benefits of investing in ULIP in 2023

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₹1.5 lakhs. This means that investors can save money on taxes with an investment in ULIPs. Additionally, there is no tax levied on withdrawals or maturity amounts received from ULIP plans.

Investors can keep track of their investments through regular reports and statements provided by insurers which adds to the transparency of the plan. Furthermore, investors have the freedom to switch funds and adjust premiums as per their requirements. ULIPs provide higher returns than traditional investments such as bank deposits and fixed deposits.

This is because the funds are invested in equity and debt markets, allowing investors to take advantage of capital appreciation potential over the long term. Additionally, insurers offer bonuses on ULIP plans which can further boost returns for investors. ULIPs come with built-in risk protection features that can minimize losses if the stock market takes a downturn.

Insurers also provide additional riders such as critical illness riders and accident benefit riders which help protect against risks associated with health or accidents. Investors have the option to liquidate their investments in a ULIP after the completion of 5 years. This is beneficial for those who need funds in an emergency or want to capitalize on market opportunities.

Due to their popularity, insurers offer a wide range of ULIPs for investors with different risk profiles. Here are some of the most popular ULIP plans: Debt Fund ULIPs are suitable for investors with a low-risk appetite, as most of the funds are invested in debt instruments such as government bonds and corporate debentures. These plans have lower returns compared to equity funds but offer stability and protection during market volatility.