As the world is slowly rising from the ashes of COVID, people everywhere have realised that life insurance and a safe financial future are vital aspects of leading a stress-free life.
Nowadays, many people are moving towards investments that offer better returns in the long run and grant life insurance assurance. It is where a ULIP scheme shines the brightest.
Simply put, these products combine multiple benefits of wealth creation and life insurance coverage. A component of the premium paid under ULIP is utilised to grant life insurance coverage, and the rest is invested in funds selected by the policyholder.
In this blog, we will look at why ULIPs are considered a smart investment.
Personalised investment choices
When considering investing in ULIP funds, you can select which funds to add to your portfolio. Suppose you are more of a conservative investor. Additionally, you can invest massively in the debt funds and offset this with a few equity investments. On the contrary, an equity-focused portfolio would be a great choice if you are an aggressive investor.
Additionally, as your risk profile changes or the market trend changes, you can switch your investment from one fund to another, giving it the ultimate flexibility.
PNB MetLife grants a lot of wealth plans that adequately fulfil your investment and insurance requirements. Their funds have reported continuous high performance over the last five years. The two best ULIP plans of PNB MetLife are:
- PNB MetLife Smart Platinum Plus
- PNB MetLife Mera Wealth Plan
The dual benefit
ULIPs are long considered as financial means that can offer you two significant advantages in one plan: one is an investment, and the other is life insurance. Life coverage from a ULIP safeguards you and your loved ones financially in the case of an unfortunate event during the time of a policy. Moreover, At the end of the policy term, the investment returns are paid back to you, which can help you fulfil your financial dreams.
The top-up advantages
Let us take a look at some of the top-up advantages of an ULIP scheme:
- This kind of investment allows the policyholder to increase the investment over and above the fixed premium amount.
- The top-up facility lets you invest additional money in the existing ULIP policy.
- When the existing fund is performing well, you can invest the surplus money in the existing ULIP funds without any hassle.
- It enables you to benefit from the growth of the ULIP investment fund.
No hidden charges
One of the many good things about ULIP insurance is that the charges are always transparent and mentioned. It includes premium allocation, fund management, administration, mortality charges, etc. It is deducted each month or year based on the kind of change and policy terms.
The distinct switching facility between the fund options is there for some funds, making it unique as you can decide which fund to be in based on the market situation. You may also maintain the allocation of assets by following this tactic.
Diversification is the key
With a ULIP, you can decide from a collection of many distinct funds that can aid you in wealth building. Moreover, Other than this, some ULIPs enable infinite switches. Therefore, you can select where you should invest your money. With a few ULIP plans, the fund manager will handle your money for you.
Long-term investment option
The ULIP plans additionally come with a lock-in period of 5 years. Investing throughout this duration allows you to ride out the short-term volatility and reap the benefits of long-term capital growth. After the lock-in period, even though withdrawals are permitted, it is advisable to still invest over the whole policy term if you wish to experience the full benefits of your investment.
Wrapping Up
When we are talking about your life insurance policy, many options exist. ULIPs are one of the best options, as they come with multiple benefits. If you are planning to invest in ULIP, make sure you browse through the options offered by PNB MetLife. Talk to the experts, gauge the benefits offered by them and make a successful investment.
