Whole Life ULIP Plans: All You Need to Know

At some point in time, it is essential for us to invest in life insurance policies to achieve our long-term goals as well as secure the future of our loved ones. With several options such as term insurance policy, monthly income plan, etc., today, individuals can think wisely and invest their funds to ensure a secure future ahead. 

Amongst all these plans, one such plan which also stands out is Whole Life Unit Linked Insurance Plans or ULIP. Whole Life ULIP plans give dual benefits to the policyholders. It not only secures the future of the insured as well as their loved ones, but it also gives market returns to the policyholder. 

There are several insurance companies that provide the right whole life ULIP Plans. In addition, one can also check online ULIP plans for more premium-based advantages of ULIP Plans. However, you must know the ULIP policy and ULIP Plan charges in detail before buying it. Here is a complete guide for you. Read more and learn about the Whole Life ULIP plans in detail. 

What are Whole Life ULIP plans? 

Whole-life ULIPs plans are investment-linked insurance policies providing protection and investment benefits until the age of 99 or 100. It doesn’t not only provide your beneficiaries with a death benefit but also provides for your living expenses throughout your retirement. 

You can enter the ULIP policy at any age between 18 and 100 and exit at any age. However, you must specify how long you want to save money while choosing the policy. You can choose the date you get to retire. 

Despite this, the 5-year lock-in period remains unchanged, after which you can withdraw the corpus via a systematic withdrawal plan. When you reach retirement age, your withdrawals will serve as your retirement income. 

What are the Benefits of Investing in Whole Life ULIP Policies? 

  • Death Benefit 

The essential advantage of including Whole Life ULIPs in your investment portfolio is that they provide life insurance coverage until the age of 99, providing more protection for the insured’s family. 

In the terrible event that the life guaranteed dies, the family receives cash compensation for the loss of income caused by the probable loss of your life. This implies that it provides risk coverage for the rest of your life and has no expiration date. The beneficiaries will get the total money, regardless of the policyholder’s demise.

  • Maturity Benefit 

The maturity benefit policyholder will receive in retirement is entirely dependent on the age at which he or she begins. When the insurance matures, you will get the Fund Value plus any Top-up Fund Value. You can receive the Maturity Benefit as a flat payment or a structured pay-out through the Settlement Option.

  • Partial withdrawals

This facility is specifically designed to assist you in providing cash to meet emergency financial demands. Your child’s financial demands may include further education or marriage. However, you can use this option anytime after the first five policy years. Depending on your needs, you can make any number of partial withdrawals or even a complete withdrawal at a time. 

  • Tax benefits

The premium that you will pay for the ULIP policy will be eligible for tax deductions, up to 1.5 lakhs, in a financial year, subject to terms and conditions. This is one of the lucrative benefits of getting a whole life ULIP insurance plan. Moreover, the death benefits received are exempt from taxes. 

Conclusion 

Whole Life ULIP plans provide numerous advantages for each income group. With flexibility and tax-free benefits, one can get the most out of it by the time when premiums are entirely paid or even early to that in case of emergency. You can opt for ULIP plans by Tata AIA Life insurance, which provide several benefits to the policyholders, like 11 different fund choices for investment. Similarly, there are several other companies that one can consider.

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