Choose ULIP plan a smarter way for investments…

ULIP plan is dual benefit investment plan that includes safety component through an insurance cover along with wealth enhancement possibilities. In a ULIP, a part of your premium is reserved for life cover and the rest is invested in market-linked funds such as equity, debt or balanced funds. ULIPs are very flexible and transparent which enable the investor to customize the plans as per the need and unlike other plans once invested, it remains unchangeable.

Choosing the best ULIP insurance policy is very easy provided certain factors are considered before investing. Understand your ULIP plan, charges applicable, compare different products offered by companies and go for the best ULIPs that fit your financial needs. Pick a ULIP policy that offers a wide range of options across various investment avenues such as equity funds, debt funds, balanced funds, stocks, etc. The more options you have better it is for you to choose a suitable ULIP plan. 

Some factors to consider while choosing your best ULIP insurance policy are as follows:

Since buying needs lot of calculation it’s always better to choose easier modes such as comparing quotes online and purchasing it. Online sites are a great place to start as they help you easily to compare the cost of insurance and also provide you a variety of options to choose as per your requirements.

Compared to old ULIPs, the new ones provide better avenues for wealth creation along with an adequate cover. While choosing your best ULIP plan look for the ones with the lowest expenses and high returns over the time. The expense can be compared easily since the information is widely available on company websites in a transparent manner. Opt for ULIPs that invest the entire premium in market-linked funds.

ULIP investments are medium to long-term tools. Don’t be in haste to extract returns from markets. A medium to the long-term plan will help you experiment with the funds and extract better returns from market-linked funds. The flexibility in your premium payment also matters a lot. Arrange for an amount that you can pay towards premium and then choose your best ULIP insurance policy to see if it fits your budget.

ULIPs mainly offer a death benefit that is the higher of the sum assured and fund value. Some insurance companies also offer an attractive third option of a percentage of the premiums paid for instance 105% of premiums. This means the individual gets the higher of the three amounts – sum assured, fund value and premiums.

Depending on the fund that you opt to choose, fund management charges are also deducted by the insurance company for the maintenance of the funds. Your best ULIP insurance policy should mention all the charges applicable clearly before the investment and flexibility options after investment.

ULIP is a good investment tool for the market savvy investor. Not only does it offer an excellent opportunity to earn money from market-linked funds but also secures your family with a suitable insurance cove. Anyone who can buy ULIP, stay invested for a longer period can reap benefits of equity

or debt investment. Once you figure your needs you can create the best ULIP insurance policy that can secure and insurance the future of you and your loved ones.