A unit linked insurance plan (ULIP) is a multi-faceted policy that provides insurance coverage as well as investing exposure in stocks or bonds. This product necessitates monthly premium payments from policyholders. A part of the premiums is used to cover insurance costs, while the remainder is pooled with funds from other policyholders and invested in equities, bonds, or a mix of the two.
Unit-Linked Insurance Plans: What You Need to Know (ULIPs)
The best unit linked insurance plan can be used for a variety of objectives, including providing life insurance, creating wealth, generating retirement income, and funding children's and grandchildren's education. In many situations, an investor will open a ULIP to benefit their heirs. Beneficiaries of ULIP funds would receive payments upon the death of the owner.
The investment choices in a unit linked insurance plan are organised in a manner similar to that of mutual funds and they also pool in money from other participants. As a result, the assets of a ULIP are managed with the goal of achieving a certain investment objective. Investors can choose to invest in a single strategy or spread their money across many market-linked ULIP funds.
Investing in a ULIP
When purchasing the top ULIP plans, policyholders must make an initial lump-sum payment, which is followed by yearly, semi-annual, or monthly premium payments. Although the premium payment requirements differ from product to product, they are always proportionally oriented towards a defined investment mandate.
The regular premium payments allow policyholders to build up principal more quickly than they could if they waited for returns to accumulate. Furthermore, many ULIPs allow you to "top up," or contribute large lump sums to your balance.
How to Choose the Best ULIP Plans?
The following are some considerations to ponder upon when selecting the best ULIP plan in India :
Choose the best ULIP Fund Based on Your Objectives
ULIPs allow you to invest in debt funds, equity funds, or a combination of the two. Equity funds have a strong long-term growth potential but carry higher risks, whilst debt funds save your money but have limited growth potential as they involve minimal risk. So, depending on your objectives and risk tolerance, you can choose to invest in debt or equity. Furthermore, you can transfer money between different funds in a ULIP based on your needs.
Select the Required Amount of Life Insurance Coverage
The best ULIP plans are meant to assist investors in meeting long-term financial goals such as their children's higher education, marriage, and so on. Additionally, ULIPs give financial protection to the policyholder's dependents in the event of the policyholder's demise. So, keeping all of your future demands in mind, choosing the appropriate quantity of life insurance coverage is critical.
Think Long Term
ULIPs, in addition to providing life insurance coverage, aid in the development of wealth and the achievement of financial objectives. If you invest in the best ULIP plans for a long time, you can fetch lucrative returns with the help of you plan.
You should be aware of the number of free switches available in your chosen ULIP plan. This is because the majority of insurance companies enable free switching between debt and equity funds.
This feature allows you to withdraw a portion of the money you have put in ULIPs. However, this function is usually activated after the lock-in period has ended. Lock-in period is defined as the time frame in which no withdrawal is permitted.
ULIP Plans by Bharti AXA Life
ULIP plans offered by Bharti AXA Life aims to provide life insurance cover and investment growth to the policyholder. This policy plan offers a comprehensive financial solution to provide life cover of up to 10 times the amount of the premium. It thus helps build wealth over a long period of time and enables fulfilment of aspirations and dreams of the individual and his/her family along with tax benefits.
For instance, Bharti AXA Life Wealth Pro plan* provides two variants to choose from:
growth variant and legacy variant. Moreover, multiple investment strategies are also offered to choose from as per the investor's suitability and needs. Other benefits included in the plan are a death benefit, maturity benefit, loyalty addition, settlement option, and others.
Life insurance coverage is available.
*IN THIS POLICY, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER
Bharti AXA Life Insurance Company is only the name of the insurance company and Bharti AXA Life Wealth Pro is the name of the Unit Linked non- participating individual Life Insurance plan, and does not in any way represent or indicate the quality of the product or its future prospects. UIN: 130L100V01
The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year. The premium paid in Unit Linked Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Past performance of the Fund Options is not indicative of future performance.
Tax benefits are as per Income Tax Act, 1961, and are subject to amendments made thereto from time to time.
For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale.
Advt no- II-Aug-2021-3137