Every investor seems to know all that is wrong about ULIP vis a vis Mutual Funds and ETFs. Have you considered that liquidity or additional benefits of insurance are pros of a ULIP, not at all the drawback?
Tax savings is the singular most popular reason majority citizens consider as benefits of LIC. Yet, that’s like appreciating the song bird only for its pretty tail. The package is what makes this investment song worthwhile, and for a long while.
Index Plus by LIC which invests exclusively in NSE NIFTY100 and NSE NIFTY50 indices is popular with those favoring Sovereign promise and protection over Private profit methods.
What you never considered as positive signs in Index Plus ULIP policy by LIC is:
Refund of Mortality Charges
- Returns the cost of life cover at maturity, effectively reducing overall charges
- Mutual funds charge management fees and exit loads without any refund.
Lower Liquidity, Higher Discipline
- Limited partial withdrawals encourage goal-based saving. Avoids impulse spending and frivolous purchases.
- Mutual funds offer high liquidity, which can lead to impulsive withdrawals and/or misguided temptation by lure of profit elsewhere.
Guaranteed Additions
- Includes guaranteed additions based on premium payments, boosting fund value over time. Apart from maximizing policy holder’s profits, this also rewards the efforts undertaken by him/her for disciplined investment.
- Mutual funds don’t offer guaranteed returns or additions
No Market Timing Needed
- Designed for long-term disciplined investing, reducing the need for active fund management. Makes daily stock market level anxiety redundant by enabling a vision for the future.
- Mutual funds often require monitoring and timing for optimal returns.
For specific deliverables and customized solution from among various suitable LIC plans, please reach out to author and LIC Agency Holder Ujjwal Dey by email to GET@BUDVICE.COM
