When it comes to making sound investments, a large part of ensuring their suitability for your needs depends on how flexible the insurance options are. The higher the flexibility, the more likely you are to find plans and options within the policy that can allow you to craft the policy to suit every conceivable need. The more rigid the policy, however, the more you must alter your needs to suit the policy. We all know that it should be the other way around!
One of the most flexible investment options available in the market is ULIPs. Known for their wide range of benefits, ULIPs can offer you the ability to mould a policy for your needs like no other.
Here are some of the many reasons why a ULIP is the most flexible policy option you can find:
1. Term flexibility
When it comes to investments, most people think in large chunks of time. However, not everyone wants to invest their funds for the same term period. Investors that have set goals for the future and intend to use their funds towards specific purposes can benefit the most from ULIPs as the term of the policy is often flexible. The minimum lock in period for the ULIP is 5 years, although you can choose to invest in the policy for a longer time, as per your needs. As a result, you can plan almost each year of the future and ensure that you have the funds to back up your needs when the time comes!
2. Investment flexibility
Sometimes, when you invest in a policy, you have limited say in where the funds are generally allocated. You may have all the information needed but due to certain policy terms, you can only have so much say in where the funds go, and how much. However, ULIPs are high flexible policies when it comes to investing the funds. You can chose exactly what investment avenues you want to explore or leave the decision making to the pros. Based on how old you are, and the number of years that are left in the policy term, your funds are managed with varying goals and perspectives. This makes ULIPs one of the most flexible policies in terms of where your funds actually go to grow.
3. Protection + Savings Flexibility
ULIPs are often used to serve a dual purpose. They offer a life cover and can also be used to create a savings fund for yourself. It is important to note that life insurance does not also mean that you are saving the premiums you are investing. If the term of the life insurance ends, you don’t get the money back. However, with ULIPs, there is no such constraint. You will not only get your funds, they will have grown substantially, depending on your policy.
4. Risk flexibility
ULIPs are ideal for a range of people as they take into account the individual investor’s appetite for risk. If you want to play your cards safely, you can allocate your funds in safer investments. However, if you like to live on the wild side, you can allocate your funds in investments that are perceived to be slightly riskier, but with a larger pay off at the end of the day. Therefore, no matter what your inclination may be, you will find investment options to suit your needs.
With all these factors in consideration, ULIPs are certainly the most flexible investment option out there.