First, provide protection to your family in the event of your untimely absence. This can happen through adequate life insurance coverage. Second, is to ensure that your money grows well over the long term. This can typically happen through equity investments. Over long periods of 8-10 years or more, equities grow faster than alternative investments such as debt investments like fixed deposits (FD) and real estate. In the last 15 years, equities, as represented by BSE benchmark stock index, Sensex, grew at 16.11%** annually.
ULIP: Growth + Protection Combo
Just in case, you want one investment that will combine tax savings, protection and growth of your money, look no further than unit linked insurance plans (ULIP).
ULIPs not only provide life insurance to provide for the family’s immediate and future needs in case of your untimely absence but also provide the typical long term growth from equities.
But that’s not all.
Tax edge
Apart from getting access to the typically long term growth of equities, you also get life insurance cover to protect your family. That not to forget the annual tax deduction of upto Rs 1.5 lakh you get for paying premiums. What’s more, the money you get on maturity is also free of tax under Section 10(10)D.
When leading a busy life of balancing work and home, the last thing you need is investments adding to your responsibility burden. ULIPs take care of your three important financial needs and ensure that you can attend to your responsibilities without a worry about your future finances.
10 year period ending June 30, 2017
