Life Insurance Plans To Build Corpus: ULIP & Endowment Plan

Life insurance protects you and your family from all kinds of unwanted financial crisis, which is also the reason for its popularity. However, there is another financial behavioural aspect which has driven most earning individuals of today towards building a corpus.Seeing this pattern, many insurance companies have offered the life insurance corpus options to individuals that take care of both the security as well as your wealth creation. Here is a list of insurance policies that can help in this regard.

ULIP or Unit Linked Insurance Plan is one of the ideal financial instruments that covers both the aspects – financial security of life insurance and investment factor of market-linked product – in an organic manner. This is possible because the premium amount is divided into two components, one which goes into the insurance while the other is invested in a plan chosen by you.Moreover, there are many ULIP schemes that offer fund options of equity, debt as well as hybrid. The returns on each of these are linked to the market, so plans are needed to be chosen wisely.

These plans are specially devised for those individuals who want to make long-term savings but are averse to the market risks and its volatility. As endowment plans are not dynamically linked to markets, it is perfectly immune to market fluctuations.This kind of policy ensures that upon maturity, the policyholder can withdraw any amount of savings or go for monthly instalments. In addition, if the policyholder is dead, the authorised beneficiary would get the assured sum. In case, if the policyholder survives the policy term, they can use the assured sum for any kind of purpose such as retirement plan, higher education of the children or even purchasing a property.

Another option that offers a life insurance corpus option is the guaranteed returns plans. These plans have available alternatives one of which is the 'with bonus' (participatory) insurance plan wherein a certain bonus amount will be added to the assured sum of money by the insurance provider, while the other one is 'without-bonus' (non-participatory) plan that provides returns depending on the profit of the insurance provider.With all these insurance cum investment plans in place, it would be considerably easy for investors to go for life insurance plans to build a corpus. However, one must be reminded that there are multiple insurance providers, so choosing a suitable plan can be quite tricky. So, it’s always better to look for credible and big names in the industry.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.