Unit-linked Insurance Plans or better known as ULIPs are dynamic and flexible by nature to be fitted to all your needs. Be it Wealth creation, planning for children education/marriage or securing your post retirement years.
This being the most transparent investment options gives you the peace of mind along with providing you an option of customization in the plan chosen.
Why ULIPs are considered to be the most preferred investment option these days:
- For being transparent
- For allowing customization
- Fit to all your requirements
- For providing Life cover While creating wealth
- Tax Benefits
How do ULIPs function?
- Decide the amount of premium to be paid and the amount of life cover you require.
- Some portion of the premium is deducted by the insurer upfront as premium allocation charges.
- The rest of the premium amount is invested in the funds chosen by the insured.
- Other charges such as admin and mortality charges are deducted on periodic intervals (mostly monthly).
- Fund management charges are deducted on a daily basis.
- At maturity, you will receive the fund value as at the time of maturity.
Charges incurred in ULIPs:
- Premium allocation charges.
- Administration charges.
- Mortality Charges.
- FUND Management Charges (FMC).
How to choose our best ULIP plan to gain maximum benefit out of it:
- Understand your requirement.
- Know your risk appetite (For e.g. If you’ve a high risk appetite, choose for a fund which is more aggressive and invests higher percentage in equities).
- Understand the charges levied on your plan as charges varied from product to product.
- Compare the past performance of your chosen plan, ensure that you’ve an easy access to your NAV* whenever needed.
- Compare the products of different insurance companies to have maximum benefit out of your investments.
Things to keep in mind while opting for a Unit-linked Insurance Plan:
- Choose an appropriate life cover wisely keeping your needs and liabilities in mind, your sum assured should be sufficient to take care of all your liabilities in longer term.
- It provides you with desirable results only when bought for longer durations as the product charges are higher in the first few years.
- Choose your fund options carefully keeping your risk appetite in mind.
- Never forget to educate yourself about the charges incurred in ULIPs.
- Check for the switching option carefully knowing the number of free switches etc. throughout the policy term.
*NAV is the value of each unit of the fund on a given day.
Please note that the information provided is collected from sources publicly available & we believe to be reliable. The website doesn't warrant the accuracy, reliability & absolute information available on the website. Participation by site visitors or registered customers is on a voluntary basis. The policies are offered by various life Insurance & non-life insurance offering companies and Bimadeals does not seek to, either directly or indirectly, advise, offer, solicit or recommend that any person who is or proposes to become its member should purchase the Policy.