Outlook Money Outlook Money, April 2018 | Page 69

Life Insurance Made Easy How ULIPs Are Helping Millennials to Achieve Their Life Goals Through equity exposure and switching option, ULIPs can help millennials build wealth for their Life Goals. T he ‘2017 Julius Baer Wealth Report: Asia’ found India to be home to 40 crore millennials, more than the entire US population. The report also found the concept of luxury among millennials has changed from expensive goods, to exclusive experiences. Their goals go beyond child planning and marriage, among others. Realising Goals Through ULIPs Combining insurance and investment into a single product, unit-linked insurance plans (ULIPs) are one of the most prudent financial tools through which millennials can realise their financial aspirations such as going on an international vacation. Investing a majority of the premium in the market to earn returns for long-term wealth creation, here’s how ULIPs can help millennials build the desired corpus for their Life Goals. Better Returns with Equity Exposure ULIPs invest in various Ulip Advantages For Millennials Get more Triple Benefits Of Insurance, Wealth Creation And Tax Advantages Build Your Wealth Long Term Wealth Building Through Equity Exposure Ensure Profitability Flexibility To Switch Funds As And When Required No Bounds Partial Withdrawal Facility After The Mandatory 5-Year Lock In Period Fight Inflation Sizeable Corpus To Beat The Effects Of Inflation asset classes (equities, balanced, and debt), of varying degrees of risk, through different funds. Though volatile, equities have the potential to generate better returns than any other asset classes. ULIPs allow allocation of investments in the desired asset class, with greater exposure to equities potentially entailing better and higher returns in the long-run. Large Sum Assured Coupled with Tax Benefits ULIPs offer millennials a sum assured of at least 10 times the annual premium. Also, the premiums paid qualify for tax deductions under section 80C of the Income Tax Act, 1961, thereby providing a sizeable corpus as well as tax sops on the premiums paid. Switching Option While Nearing Goals While nearing their financial goals, millennials can switch from equities to debt funds to protect their corpus from eroding, in case the market turns sour. They can switch to a better performing fund within the same ULIP in case of unsatisfactory performance. Switching can be done anytime during the term of the policy and can be used to book profits too. Disclaimer This is a Media Marketing Initiative and the opinion expressed in this article is not endorsed by Outlook Money Editorial. www.outlookmoney.com April 2018 Outlook Money 67