Here is why you should buy both – term insurance and ULIP

Insurers nowadays offer a host of instruments for those like Rajesh, who is not just looking to increase their wealth in the long-term, but also planning for their retirement and searching for means with which to secure their family’s well-being after they are gone.

Term insurance benefits are all singularly focused on providing for the family after the policyholder’s demise, while the benefits of ULIP plans extend more in the direction of creation of wealth through investment across a portfolio of funds that cover equity funds, debt funds or even a mix of both. Read on to learn more about the advantages of term insurance, and how they differ significantly from the benefits of ULIP plans.

1. The simplicity offered by term insurance is appealing for those looking for just the benefits of ensuring financial coverage for their family when they are no longer around. While a life insurance policy carries a host of riders and exclusions which must be carefully read through within the fine print on the policy documents, term insurance is a simple agreement for a fixed term that covers only death. The Future Generali Flexi Online Term Plan offers a life cover of Rs. 1 crore at only Rs. 16 a day, which can be paid out as a lump sum amount as a death benefit or can be dispensed as an income till the time the policyholder is alive.
2. Term life insurance is cheaper as compared to conventional life insurance policies, which figure in other costs for other riders and benefits they provide. The advantages of term insurance arise mainly from the lower costs of premiums that are required to keep it going.

Term insurance benefits are multifold, including lower premiums for women. Clubbing this with a ULIP allows the policyholder to avail benefits of ULIP plans, which includes creating a corpus of wealth for their family long after the policyholder is no more.

Read on to learn the benefits of ULIP plans, as compared to term insurance.

1. ULIP plans offer both insurance coverage and act as an investment instrument: Buying a ULIP plan provides policyholders with the dual benefit of investing across a portfolio of funds which cover equity funds which offer high returns but are highly risky, as well as debt funds which offer lower returns but are less dangerous too. Policyholders can easily switch between different funds to ensure they avail benefits of ULIP plans even if market forces appear dangerous at the time of investment.
2. ULIP plans aid wealth creation for the policyholder’s family, even if the policyholder is no more. Through the different funds that the ULIP is invested in, a policyholder can create a significant enough corpus that will provide their family with a regular of income even if they are no longer there.