Labour day, also known as the ‘Worker’s day’, is just around the corner. This day is celebrated in over 80 countries as a commemoration of the achievements of the labour movement. In India, the formal celebration of Labour Day was initiated by the ‘Labour Kisan Party’ in Chennai on 1 May 1923 and is now observed as a holiday in many states.
People nowadays spend this day relaxing at home and using it as a getaway from work. But have you ever thought of a different way to spend this day? Why not utilize this day, that marks the achievement of your work, to invest your hard-earned money in a suitable investment vehicle?
While you are busy making plans for 1st May this year, you might also want to consider making investments that can potentially change your life for good.So, why not use this day to bring wealth and prosperity by investing in better financial plans to reap the benefits in future.
When it comes to wealth creation, you need to think about investments that can secure you financially. Investment in ULIPs is a great way to start with. Here’s why:
A ULIP plan is one of the most flexible, transparent, long-term, and goal-based investment products available today. It not only suffices your objective of protection but also adequately focuses on wealth creation. Some part of the premium goes towards providing you with life cover, and the remaining is invested in funds.
ULIPs also prove to be the one-stop solution to fulfill your long-term financial goals, be it your child’s education, marriage, wealth creation or even planning your retirement.
Additionally, a long-term investment horizon in ULIPs reduces the volatility created by the equity portion of your investment and leads to a consistent maximization of your wealth. In other words, ULIPs can result in a smoother journey towards the achievement of your investment objectives. Hence, the sooner you sign up for any ULIP plan, the better results it can reap.
Some of the unique features of ULIPs are mentioned below:
1. Choice of Funds:
When you plan to invest in ULIPs, you can select the fund of your choice based on your risk profile and investment objectives. You can go for growth funds which invests in equities or balanced funds, which invests in both - equities as well as bonds.
2. No Hidden Charges:
The premium paid towards a ULIP plan is subject to specified charges, which is communicated to you when you buy the plan. Therefore, it becomes a completely transparent process. However, it is essential that you go for a ULIP plan with minimum charges to get maximum benefits.
3. Switching Facility:
ULIPs provide switching facility between funds. Moreover, this facility is free of charge for some of the best ULIP plans available in the market today. The feature of switching helps you decide which fund to remain invested in, based on the prevailing market conditions.
4. Partial Withdrawals:
The availability of the partial withdrawal feature allows you to meet your immediate financial requirements without hampering the plan continuity.
5. Tax Benefits:
Like other insurance plans, the premium paid towards ULIPs upto Rs 150,000 qualifies for tax deduction under Section 80C (as per the Income Tax Act, 1961). Additionally, maturity proceeds along with gains are also tax-free under Section 10(10d).
Growing your hard-earned money is as important as earning it. While you make efforts to protect and create wealth, you can count on a ULIP plan to grow it sustainably. The choice of switching between funds will ensure that you can grow your wealth based on your desired asset allocation at different life stages.
This labour day, take a pledge to safeguard your financial future and illuminate your wellbeing. Invest wisely through ULIPs so your dreams or financial goals can come true.
Happy Labour Day To You!