to determine the returns from a particular policy.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\nWhich one should you choose?\u00a0<\/b><\/h2>\n
Should you choose a ULIP or an FD? A fixed deposit is usually a safe investment that does not depend on market returns. However, the returns are sizably lower than those offered by ULIPs in most cases. At the same time, FDs do not give you any additional benefits like life coverage and the payment of a sum assured to your nominees in the event of your unfortunate demise.\u00a0<\/span><\/p>\nHence, many investors choose ULIPs as better options for gaining insurance coverage and growing their wealth simultaneously. ULIPs can also enable flexible switching of funds to minimize risks and employ better strategies to earn higher returns based on market trends. In fact, you can choose the fund types while investing in ULIPs. Hence, you can go for a higher allocation to debt funds in your portfolio for minimizing risks. This can be done either in response to market conditions, or even with age and growing financial responsibilities. A mixture of funds naturally evens out the risks over a longer period. Moreover, they come with significant tax deductions and also enable higher returns. In addition, there may be several other loyalty bonuses\/additions for customers in many ULIPs. This helps boost the fund’s value while loyalty additions apply for plans with tenures of ten years or more.\u00a0<\/span><\/p>\nThe longer you stay invested for, the better your chances are of earning higher returns. Also, switching funds helps lower risks to the portfolio during bear markets while switching to higher-performing funds during bull runs. Many insurance providers\/companies also offer professional management and assistance solutions for ULIPs.\u00a0<\/span><\/p>\nThese are some of the biggest reasons for choosing Unit Linked Insurance Plans or ULIPs over Fixed Deposits (FDs). They are better suited for the current scenario, where inflation rates are skyrocketing yearly without proportionate income increases for many individuals. Hence, they can ensure greater peace of mind with life coverage (safeguarding your family’s financial future) and help you meet future goals through long-term wealth creation.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"You must have heard of ULIPs(Unit Linked Insurance Plans), which are hybrid life insurance products that combine insurance and investments. They are increasingly popular options for people nowadays. However, they often come up against the ever-reliable FD or Fixed Deposit, which is still regarded as one of the country’s safest and most trusted investment options. […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[152],"tags":[99],"_links":{"self":[{"href":"https:\/\/www.oracleglobe.com\/wp-json\/wp\/v2\/posts\/66174"}],"collection":[{"href":"https:\/\/www.oracleglobe.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.oracleglobe.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.oracleglobe.com\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.oracleglobe.com\/wp-json\/wp\/v2\/comments?post=66174"}],"version-history":[{"count":3,"href":"https:\/\/www.oracleglobe.com\/wp-json\/wp\/v2\/posts\/66174\/revisions"}],"predecessor-version":[{"id":66178,"href":"https:\/\/www.oracleglobe.com\/wp-json\/wp\/v2\/posts\/66174\/revisions\/66178"}],"wp:attachment":[{"href":"https:\/\/www.oracleglobe.com\/wp-json\/wp\/v2\/media?parent=66174"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.oracleglobe.com\/wp-json\/wp\/v2\/categories?post=66174"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.oracleglobe.com\/wp-json\/wp\/v2\/tags?post=66174"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}