A ULIP or Unit Linked Insurance Plan offers the benefits of both investment and life insurance under a single policy. With a ULIP; therefore, you can create wealth while enjoying life cover protection throughout the investment period. 
A portion of your investment is placed towards life insurance, while the remaining amount is allocated to a mix of equity or debt funds based upon your long-term goals. These goals could be as varied as possible - children?s education, retirement planning, buying a house, or any other important milestone you may wish to save for.
Overall, with a ULIP in your investment portfolio, you can not only maximize your savings to suffice your future goals and lifestyle needs but also make sure that your family?s interests are protected in the long term, even in case of an eventuality. 
Let us explore the benefits and features of ULIPs further to see how they can help ensure all-around protection for you and your loved ones.  
 

1. Utilizes Your Savings to Create Wealth
While putting aside some money in a savings account is a necessary financial habit that most of us have, it only gets the job half done. The saved-up amount isn?t augmented with sustainable returns, unlike other market-linked investments. So, your savings have limited potential of growing into a large corpus with time. 
ULIPs, on the other hand, an excellent wealth investment option to fulfill long-term goals such as buying a new car or supporting your child?s higher education, because your money gets compounded to give you significantly high net returns. 
This stands true, even if you exit the plan after the initial five-year lock-in period, in comparison to not having your money invested at all and putting it away in a savings account or an FD. The mantra of maximizing your savings to create significant wealth is to remain invested in the ULIP for a longer time horizon. 

2. Lowers Your Risks
Given the fact that ULIPS investments have equity and debt components, they risk exposure to market volatilities in the same way as any other wealth investment. Unlike equities; however, ULIPs are designed in a way to help you ride out the fluctuations without harming your returns. 
With a ULIP, you have the advantage of switching your portfolio between equity and debt, depending upon your risk appetite and knowledge of market performance. Thus, you can reduce your risks by remaining invested in funds that are high yielding and are less prone to fluctuations. 
Moreover, ULIP plans from reputable insurers such as Max Life Insurance enable you to avail significant tax benefits under Section 80C and 10(10D) of the Income Tax Act, thus lowering your tax liabilities by offering immediate investment benefits for as long as you continue with the plan. 

3. "Insures" Your Family's Future
The life cover benefit of ULIPs is an essential policy benefit that helps lower your risk against an eventuality. In other words, if something happens to you, the life cover amount, and the accumulated corpus together help create a financial cushion to support your family?s lifestyle requirements and future needs. 
While purchasing the plan, you can choose whether you want your family to receive the accumulated corpus as a lump sum or in the form of monthly payments for a specific period. After your demise; therefore, the insurers will provide the agreed monetary benefit to your family.
Subsequently, your family will not have to depend on anyone else for financial support as they will have a sufficiently large amount of wealth at their disposal to sustain their standard of living.    
 

4. Propels Your Family's Dreams
ULIP investments allow you to maximize your earnings through market-linked returns and additional wealth boosters while protecting your family?s future. Thus, even in case you are no longer around, the plan would help ensure that your spouse doesn?t have to worry about working hard to make a living and that your children go on to receive education at a college of their choice and choose a career according to their preference.  
In other words, ULIP investments help you make sure that your family can work towards accomplishing their dreams without any financial hiccups along the way.