While residents and NRIs both can invest in ULIPS, read on to understand what makes them so suitable for NRIs.
An ideal combination of investment and insurance
Under a single policy, you can get the benefits of life coverage as well as market-linked investments. Without the worry of juggling between your separate investments and insurance policies, you can enjoy them both under one umbrella.
Stay empowered with asset allocation
ULIPS allow you the freedom to allocate the funds that you invest into various market-linked instruments. You can invest in debt funds, equity funds and even a balanced combination of both. As an NRI, this can be very beneficial for you, especially when you may have different priorities when living abroad.
Build your wealth with market-linked growth
NRI investors can also use ULIP as a tool to build wealth. If the market allows, you can benefit from long-term market-linked growth. While markets always come with the risk of volatility, you can make use of diversification to secure your financial stability.
Switch funds when you deem it right (H3)
Another benefit that ULIPS bring is fund switching. Changing market conditions or your personal financial situation can be dealt with through careful fund switching. Keep monitoring your portfolio and choose the option to switch when it seems right.
Meet your liquidity needs in India or abroad
Once the 5-year lock-in period is over, you have the option of making partial withdrawals. Depending on your needs in India or abroad, you can make use of this money.
Tax benefits are an added advantage
Life insurance policies offer tax benefits, which can be a major attraction if you wish to save on taxes back home. As an NRI in Kuwait, you can get tax benefits on ULIPS at the time of policy inception, on the returns that you get and when the plan comes to an end. Here’s how:
- Section 80C allows a deduction of up to Rs.1.5 lakhs per year against the premiums you pay.
- The returns that you receive during the policy are not taxed as long as you stay invested. You can enjoy tax-free growth.
- In case of the death of the insured, the death benefit received by the nominee is tax-free under Section 10(10D).
Disciplined savings for a secure future
No matter what part of the world you reside in, the hope of a secure future remains. As an NRI in Kuwait, if you are planning to stay on, buy a house or plan your retirement there, the wealth accumulation through the ULIP can be very helpful in arranging your finances.
A lot of NRIs in Kuwait also dream of returning home someday, either for good or during their retirement. When you have a significant corpus to rely on, coming back and settling well becomes easier.
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