What's in it for you
Unit-linked insurance plans (Ulips) are a category of
goal-based financial solutions that offer dual benefits of protection and
investment. Your unit-linked insurance plan is linked to the capital market and
offers you flexibility to invest in equity or debt funds depending upon your
risk appetite.
Ulips are typically bought for long-term capital gains and offer a protection cover too. Though much has been written about Ulips in the past, a lot has changed for the better in the past four years. In 2010, insurance regulator Irda issued new guidelines for Ulips to improve the returns for investors by reducing the charges and to ensure that the new product is sold and bought as a long-term protection and savings tool.
In the last few years, the demand for traditional insurance plans has gone up considerably overshadowing the Ulips. So what is the new Ulip all about and what’s in it for you as a customer.
What makes Ulip a better investment product?
Ulips are typically bought for long-term capital gains and offer a protection cover too. Though much has been written about Ulips in the past, a lot has changed for the better in the past four years. In 2010, insurance regulator Irda issued new guidelines for Ulips to improve the returns for investors by reducing the charges and to ensure that the new product is sold and bought as a long-term protection and savings tool.
In the last few years, the demand for traditional insurance plans has gone up considerably overshadowing the Ulips. So what is the new Ulip all about and what’s in it for you as a customer.
What makes Ulip a better investment product?
First of all, it can help customers avoid everyday hassles
of managing stocks: Investing in Ulip provides you expertise in fund
management, multiple options to choose a fund on which the premiums will be
invested and different investment strategies like, for instance, opportunist
and balanced approaches.
Secondly, a Ulip can help you to churn your portfolio. It allows you to shift your money from one fund to another without disturbing your long-term financial plan by using fund switch, premium redirection or partial withdrawal options.
In fund switching, you can shift your money from equity funds to debt funds or vice-versa while the premium pedirection strategy allows you to redirect future premiums to any fund of your choice while keeping your existing fund composition intact. The partial withdrawal option in a best Ulip insurance policy provides the flexibility to its policyholders to ‘partially’ pull out some amount of money from the accumulated fund value within the policy term.
Other unique features of an Ulip include the duel benefits of investment and insurance cover, multiple investment options and tax benefits.
Ulip is a two-in-one plan, giving the investor twin benefits of life insurance cover and investment. The multiple investment options of an Ulip allow investors to invest in multiple fund options based on lifestage needs and risk profiles. Plus, investments made in a Ulip enjoy tax benefits under Section 80C & 10(10D) as per prevailing tax laws.
While investing in Ulips, an investor should keep in mind the charges applicable, the payment policy in case of premature surrender, the investment options offered, limitations and exclusions mentioned in the policy document, lapsing and its consequences, various disclosures required and also the various benefits offered.
[source: http://www.mydigitalfc.com/insurance/how-ulip-scores-over-others-better-investment-product-699]
Secondly, a Ulip can help you to churn your portfolio. It allows you to shift your money from one fund to another without disturbing your long-term financial plan by using fund switch, premium redirection or partial withdrawal options.
In fund switching, you can shift your money from equity funds to debt funds or vice-versa while the premium pedirection strategy allows you to redirect future premiums to any fund of your choice while keeping your existing fund composition intact. The partial withdrawal option in a best Ulip insurance policy provides the flexibility to its policyholders to ‘partially’ pull out some amount of money from the accumulated fund value within the policy term.
Other unique features of an Ulip include the duel benefits of investment and insurance cover, multiple investment options and tax benefits.
Ulip is a two-in-one plan, giving the investor twin benefits of life insurance cover and investment. The multiple investment options of an Ulip allow investors to invest in multiple fund options based on lifestage needs and risk profiles. Plus, investments made in a Ulip enjoy tax benefits under Section 80C & 10(10D) as per prevailing tax laws.
While investing in Ulips, an investor should keep in mind the charges applicable, the payment policy in case of premature surrender, the investment options offered, limitations and exclusions mentioned in the policy document, lapsing and its consequences, various disclosures required and also the various benefits offered.
[source: http://www.mydigitalfc.com/insurance/how-ulip-scores-over-others-better-investment-product-699]
Thank you for sharing such great information. It is informative, can you help me in finding out more detail on Ulip Insurance India,BestUlip Insurance PlanBest Ulip Insurance Policy,i am interested and would like to know more about this field and wanted to understand the basics of ulip insurance policy.
ReplyDelete