Unit linked insurance plan
ULIPs are categorized based on the following broad parameters: a.
For married individuals who are also parents, the need for protection is high, as is the need for asset creation to save for children. At times, changes in your financial standing, liabilities or risk profile may also require that you change your investments accordingly.
The plan offers seven funds to choose from for the investor. The plan allows four partial withdrawals after completing 5 years of policy.
Unit linked insurance plan pdf
Working principle[ edit ] A Unit-Linked Insurance Plan is essentially a combination of insurance and an investment vehicle. Those who wish to closely track their investments :Unit linked insurance plans allow policy takers to closely monitor their portfolios. Retirement Planning: For those of you who plan to invest for the retirement days while you are still employed. In any case, they come with a compulsory lock-in period of 5 years. Fund management charges : These charges are towards meeting expenses related to managing the fund. Premium Allocation Charge : This charge is deducted as a fixed percentage of the premium received, and is usually charged at a higher rate in the initial years of a policy. Some ULIPs play it safe by allocating a larger portion of the invested capital in debt instruments while others purely invest in equity. Bond funds, where your money will be invested in government, corporate and fixed income bonds; equity funds, where money will be invested in company stocks; and balanced funds, where there will be a mix of both and cash funds, which invest in cash and bank deposits. The plan also provides easy access to funds to the policyholders by way of loans and partial withdrawals. Regular Premium Payment annually, semi-annually or monthly : The policy holder has to pay the pre-determined premium amount periodically i. The vehicle is market-linked and appreciates with increasing share value. After 5 years of the policy being active, one can make partial withdrawals to address any liquidity requirements that may arise. Retrieved 17 December
Administration charges are deducted by cancelling units proportionately from each of the funds you have chosen. The aggregate premiums collected by the insurance company providing such plans is pooled and invested in varying proportions of debt and equity securities in a similar manner to mutual funds.
There is a caveat. It is an EEE exempt-exempt-exempt product and you can also claim tax exemption under section 80C.
Unit linked insurance plan
Operational with branches, Future Generali is a joint venture between Generali Group, which is an international insurance group featuring in top 50 smartest companies in the world MIT technology review , Future Group — a pioneer retailer of India, and the Industrial Investment Trust Limited IITL — one of the leading investment companies. Fund Switching Charges ULIP plans enable the investors to invest their hard-earned money in different fund options that further have multiple debts equity exposure as well as provide them with the option to switch between different funds for which their insurance company will charge the switching fee. Investors across all life stages : This plan category offers a variety of plans which can be opted for depending upon the life stage you are in and your needs and financial liabilities at that point in time. With disciplined investing, they give attractive returns over the long term in addition to a life cover. Additionally, Bajaj Allianz Principal Gain plan offers guaranteed loyalty additions at maturity and allows its investor to receive maturity benefit in instalments via the settlement option. You can claim tax exemption on Ulips. Administration Charges These charges are deducted regularly for the recovery of expenses borne by the insurance company for maintaining a life insurance policy. They require safe accumulation of funds for post-retirement needs. In addition, a ULIP plan has many optional rider options like other insurance products.
However, the surrender value can be paid only after three years. The product has a five-year lock-in period. Ulips can also be categorised on the basis of the kind of funds they invest in.
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