Parenthood in itself is one of the life’s big responsibilities, isn’t it? When it comes to being a single parent, it calls for better management for everything, from the responsibilities of the little one to household chores while earning the bread. You must be wondering how. Well, single parenthood itself brings the realisation of life’s unpredictability, hence making it essential to secure your child’s future.
There are certain ways, like investing in a good plan, that can help you ease off the financial burden at least. Now, to fulfil this part, you can opt for ULIPs, also known as a unit-linked insurance plan. Continue reading to learn the in-depth details of this investment opportunity and its role in your journey.
Understanding the Role of Unit-Linked Insurance Plans
Unlike other insurance plans, a unit-linked plan offers several advantages. It begins by allocating part of your premium payments to providing your life insurance. This coverage benefit is essential given today’s unpredictability.
Another part of the premiums that you’ll be paying for a ULIP plan includes dedicating this portion of funds to market investment units. This includes stocks, bonds, equities, and other market-related growth-oriented assets. Alongside, you can be tax savvy and file for tax deductions under the Income Tax Act.
All these insurance-investment benefits collectively help you build a corpus, have peace of mind, and enjoy a regular income stream. In addition to all these benefits and tax deductions, it comes with a 5-year lock-in period to ensure a pool of funds is built hassle-free.
Benefits of Financial Planning With ULIP Plans
Being a single parent demands immense love, patience, and responsibility. Amidst the challenges, you can seamlessly walk this journey with an exceptionally dedication and resourceful investment. Here are a few unwavering benefits that a unit-linked insurance plan offers you:
- Comprehensive Financial Security: ULIPs provide you with a financial safety net. The life insurance coverage element basically ensures your child’s financial security in case of an unfortunate event.
- Long-Term Wealth Creation: As you’re aware, unit-linked insurance plans have the market-linked investment potential, it helps you build a substantial corpus over time. It’s actually a helpful way to meet your child’s long-term financial goals.
- Disciplined Investment Approach: ULIP schemes can help instil a disciplined savings habit through regular premium payments, ensuring consistent contributions towards your child’s future.
- Flexibility: Many of these plans offered by a reputed insurance provider may lead you to a variety of investment fund options catering to different risk appetites.
- Transparency: Trusted unit-linked insurance providers provide regular updates on your policy’s performance and fund value. This step further translates into progress tracking and informed decision-making.
3 Things to Know About ULIP Scheme Management
A unit-linked insurance plan has an interesting insurance, investment, and tax benefits mix. Consequently, effective management is a must-to-do task. as it may cause you to lose investment benefits. Here are three key aspects to consider:
1. Fund Allocation and Switching
Often, plans with dual elements, insurance and investments, are pre-defined by the insurer. Well, opting for a reliable insurer may indicate towards flexibility to offer you a variety of investment funds. After all, effective fund allocation based on your risk appetite and financial goals is the key to making the most of these plans without incurring further financial implications.
2. Partial Withdrawals and Top-ups
Even ULIP plans are available in a variety. However, they come with a lock-in period of 5 years. Nevertheless, there are options to choose from for partial withdrawals. While your corpus is being built for the future, this flexibility is advantageous to meet unforeseen expenses or short-term financial needs.
3. Charges and Fees
A unit-linked insurance plan, when availed from a reliable insurer, can only then be expected to be free from any hidden charges. Charges such as basic policy administration fees, a premium amount, fund management, etc., are already included. You can even compare different insurers to get an idea about the best deal. Moreover, a few renowned insurers may offer you discounts like waiver of selective charges, etc.
Make Smart Investments Today!
As a single parent, you would want to give your child a bright and financially secure future. Well, by investing in certain insurance investments, you can also add coverage benefits to it. Yes, with the right insurance provider like Canara HSBC Life Insurance, you can explore ULIPs as your next investment.
With a 5-year lock-in period, you can expect a corpus ready to cater to your financial needs. So, if you’re also looking forward to getting insured and investing, visit their official website. Over there, you can select their online ULIP scheme and ensure a secure future.
Start investing today!
