Best Guide To Investment Options

Today, life insurance investment especially ulips have been taking a major role in

the way we make an investment and at the same time try to secure our future.

Financial planning is gaining importance as one of the important aspects of life today. Today, people are giving greater importance to overall financial planning over simple tax planning as opposed to how people used to do some years back. Today, times have changed and also the needs to people have changed, making it an inevitable step that perhaps everyone has to take.

Proper financial planning is also important today because of the increasing expenditures in our daily life such as rising cost of living in the urban areas, increase in the cost of medical expenses, the urge to maintain a steady or a better life style, etc are forcing us to rethink our financial position and to save money for a better tomorrow for us and for our children as well.

The need for financial planning also comes down to leading not only a steady lifestyle but also to give better life to our children, to give better opportunities to our children to excel in education and later on in their careers. All of the above mentioned things remain as aspirations when we do not act upon something. Only when we take an active step toward building wealth, we cannot be sure of transforming our dreams into reality.

Today, a greater need for taking up investment plans is felt by many working people than those in the past. Nowadays, there are numerous options available to us which make investments possible. But, not all the kinds of investments may be suited for us. But, one of those options may be well suited for most people and it is insurance. Life insurance is one such product which is relevant to almost all the people. Today, life insurance can act only as insurance and security but also as an investment option for many of us. These life insurance investment options are available with most of the insurance companies. These investment plans have a dual role to play. One is the life insurance and the other is the investment.

These plans are specifically called as ULIPs. ULIPs are Unit Linked Insurance Plans. these ULIPs are designed to provide life insurance with a return from the stock market. One can take the benefit of the return from stock market without directly investing money in the stock market. These ulip plans are also available not only in life insurance, but also in other types of insurance such as children plans, retirement or pension plans and health insurance.

In these investment plans or ulip plans, the premiums paid by the policy holder are invested in stock market in the form of units just like mutual funds. As these units mature, they attain something called NAV or Net Asset Value. This value denotes the health of the units and how they are performing. The policy holder can from time to time check the performance of the units and can also change the portfolio to make them more profitable or safer by changing the portfolio all together depending upon the performance at the stock market. In other words, the policy holder has the full control over the account.

These kind of life insurance investment or ulip plans are more profitable than mutual funds because of the average age of these ulip plans. On a general scale, the age of mutual funds is about 5 years. But, in case of ULIP units the average age would be 15 years to 25 years. During this time, these units will attain the highest possible and one can earn profits.

With such investment opportunities available, one can make the best use of them.

by: raj sharma

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