What is a ULIP (Unit Linked Insurance Plan)
Unit Linked Insurance Plan or ULIP is your gateway to cost-effective market linked investments. It is a market-linked product that gives you dual benefit of insurance & investment.
A part of the premium is deducted in form of Mortality charge for providing life insurance cover, while the remaining amount is invested in equity or debt funds for growth on invested amount. Moreover, ULIPs offer you an array of fund options to invest your premiums ranging from 100% debt to 100% equity (with varying degrees of risk-return potential).
Things to keep in mind while investing in a ULIP
Research & read extensively about ULIP plans, understand as much as you can
While you leave a lead with any insurer, make sure to interact with their sales call centre to clarify all your doubts about ULIP charges & payout structure for the fund value as well as cover amount
Understand the charge structure that applies at the time of purchase as well as throughout the life of the ULIP plan
Don’t make a decision based on just the features rather identify a plan and fund that best suits your financial risk appetite and life stage. If you have a high risk appetite, invest in a high-risk, high-return equity fund.
Types of ULIP Plans
1. ULIP for Retirement: In this plan, you make premium payments for the premium payment duration, and the vested amount is then available for your long-term retirement goals
2. ULIP for Wealth Creation: This plan helps you to create a corpus over a period of time. These plans are highly recommended for young investors in their late twenties or early thirties, once you have settled in and can start investing a part of your income towards future goals.
3. ULIP for Child: As a parent, you want to provide the best present & future for your children. A ULIP for child will make sure that your child’s future education goals are protected, even if you are no longer around. At the time of death of the life insured, Max Life Online Savings Plan for child provides a lumpsum Sum Assured along with monthly income benefits, which will make sure that even the present expenses of your child are taken care of.
Top 3 reasons to buy Online ULIP plan...
- Online ULIP plan offer lower charges on investments
- Convenience to buy anytime and from anywhere
- Flexibility and freedom to choose policy terms, premium payment term and sum assured multiples