If you are a prudent financial planner, certain financial goals will feature on your list, in varying degrees of priority. These usually include the goals of debt reduction, the building of a corpus for early retirement, increasing your present cash-flow, tax savings & creating an emergency savings fund, among other possible financial goals. Depending on your lifestyle, desires and priorities, you may choose to give precedence to one goal. For instance, some people might be saving up for their travels to exotic destinations; others could be interested in buying their own house. A sound financial plan in place will go a long way in helping you achieve your goals. 

One way to fulfill your short-term goals, is to maximize your take-home salary every month. The lifestyle and goals of a modern-day working professional have changed dramatically over the past decade or so. We are going out more, moving cities more, travelling more and in general, spending more. Such expenditures can necessitate a larger take-home salary. But that’s not it, either. Inflation is also increasing – education inflation is said to be around 10-12% as an estimate, medical inflation is increasing, and so are the property rates. An effective financial plan will be able to help you beat the rising inflation and increase your take-home salary. The principle is simple: little drops of water make a mighty ocean. Every penny you are able to save is redirected towards your goals. 

One such effective financial plan is ULIP.  Unit Linked Insurance Plans (ULIPs) are uniquely positioned in a financial portfolio. Why? It is because they bring together the benefits of growing your wealth, securing your wealth from future uncertainties and tax benefits.

Benefits of investing in ULIPs:

  • Regular savings

First and foremost, investing in ULIPs bring in discipline and rigour that is needed to set aside a particular sum of money as premiums each year. This systematic way of investment ensures that you can stick to your short term financial goals without straining your monthly budget.

  • Life cover

Life insurance is an essential part of any sound financial plan. A life cover is necessary to provide a secure future to your loved ones. If you are looking for a life cover along with consistent growth in your wealth, then a ULIP has got you covered.

  • Flexibility

ULIPs come with the advantage of being flexible and customisable. ULIPs provide you with the flexibility of premium payment options, the choice to move your money between equity and debt and also allows you to withdraw a part of your money in case of necessity. You can also choose the type of funds you want to invest in. Along with the above benefits ICICI Pru LifeTime Classic provides regular additions to your savings through bonuses like Wealth Boosters.

  • Tax Benefits from ULIPs:
  • ULIPs also happen to be an excellent channel for tax-saving through investments. The premium you pay towards the policy each year is eligible for tax deduction under Section 80C of the Income Tax Act.
  • It is also worth noting that there are tax savings on the withdrawals made or amounts received as a part of your payouts. Payouts are tax exempted under Section 10(10D) of the Income Tax Act. What is included in this? Firstly, the death benefit received by the nominee is exempt from tax and secondly, if the policy holder receives any sum upon maturity or upon partial withdrawal, such an amount is also exempt from tax.  
  • Finally, there are no tax obligations in case you wish to switch between equity and debt funds.  


The best way to ensure protection, as well as wealth creation, is via ULIPs. Why? Because they bring the best of both worlds, so to say. If you are looking to invest with a short term or long-term horizon and want to reap the benefits of tax deductions, flexibility in choosing where to park the funds, and life cover for a secure future, ULIPs are your answer.

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