Investment life insurance policies are concluded for at least five years. Unit-linked plans are mainly used for long-term goals; this is due to the return specifics that funds show. To get a good profit, the contract must work for at least 5 years, or even 10-15.
ULIP plans both create from scratch and develop the habit of regular and disciplined savings, which will always remain the most effective solution to long-term goals. Such a strategy will definitely lead you to a better result than if you leave the accumulation process to chance.
Legal capital protection from outside reclamation
Being in a legal cover, your capital is protected by strict insurance laws. Since your savings plan is considered as an insurance agreement, and an insurance contract is not property (something that is a person's property) in most of the world's jurisdictions, it is impossible to claim your savings by any effort, neither by the state, nor by the authorities or any third parties.
Flexibility of investment
You will have flexibility and control over your money through the following means:
Change of fund: the ability to move money between funds at any time, the opportunity to adjust the chosen strategy;
Redirection of premiums: the ability to invest future premium in another fund of your choice;
Replenishment: the ability to invest additional funds on top of existing savings.
Each jurisdiction has its own benefits, and among the popular ones: no taxation during the entire investment period, tax-free insurance payment of savings upon death.
Savings are the insurance coverage
The payment of capital in the event of client’s death will be considered insurance, which means that it will not be taxed upon receipt for the beneficiaries.
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