The ICICI Prudential life insurance is a leading life insurance provider. ULIPs are among the popular insurance products offered by the ICICI Prudential Life Insurance. These are Unit Linked Insurance Plans where the customer gets the benefits of insurance and investment. This plan is quite useful in wealth building and the returns being market-linked give the added benefit over the sum assured. ULIPs come with a minimum lock-in period of 5 years.
Additional Reading: Types Of General Insurance Plans
Some of the benefits of ULIPs are mentioned below.
- These plans provide benefits in the form of maturity benefits as well as death benefits to the policyholder or the nominee as the case may be.
- ULIPs require regular premium payment which inculcates the discipline of regular savings and gradually helps in wealth building and meeting their investment goals.
- Customers have the benefit of investing in equity or debt or both in the mutual fund market and earn good returns on them.
- ULIPs also provide the option of partial withdrawal, partial redirection, switching of funds along making additional investments in the fund.
- Like any other insurance plan, ULIPs also have tax benefits in the form of deduction under section 80C of up to Rs. 1,50,000. The maturity proceeds or the death benefits are also exempt from taxation under section 10(10D) of the Income Tax Act, 1961.
Final Thoughts
ULIPs are among the popular insurance products offered by all insurers. ICICI Prudential Life Insurance has many options under ULIPs for customers to choose from. These plans provide the dual benefits of insurance and investment along with coverage for the individual as well as their family.