What are ULIPs?
Unit Linked Insurance Plan (also known as wealth insurance plans) is a package of financial solutions that include the safety of insurance cover with wealth enhancement possibilities. In a ULIP, the premium amount is invested in stocks and bonds as funds and a life cover is also ensured. This investment is dependent on the performance of the underlying fund that is chosen by the investor. ULIPs with its two in one arrangement keeps the protection and savings elements distinguished. ULIPs are very flexible and transparent which enables the investor to customize the plans as per the need and unlike other plans once invested, the plan remains unchangeable.
Types of ULIPs:
Types of ULIPs include Retirement, wealth, children’s education and health plans. Depending on the priority, investment in ULIPs can be done accordingly. Best ULIP Insurance Planis the one which hasthe appropriate life cover, right fund option and a long term investment. In ULIP insurance plans, the charges applicable are well bifurcated. The ULIP charges usually include Policy administration charges, ULIP premium allocation charges, mortality charges and fund management charges. Policy administration charges are deducted on a monthly basis, premium allocation charges are deducted from the premium amount that the investor pays and is used for medicals, cost of underwriting and distributor’s fees. The amount that remains is invested in the fund that is chosen by the investor.
Mortality charges are also deducted on a monthly basis. It is the sum assured for providing a life cover to an individual and will vary as per the fund value selected. Depending on the fund chosen, fund management charges are also deducted by the insurance company for the maintenance of these funds. Best ULIP Insurance Planis the ones which will mention all the deductions clearly before the investment and flexibility options after investment.
Choosing the best ULIP rates is easy-
Choosing the best ULIP rates is very easy provided certain criteria are considered before investing. Understanding the plan, ULIP charges implied, comparing different products offered by different companies and going for the Best ULIP Insurance Plan that fits the need will work well. One can buy ULIP online if they are clear about the kind of investment they want to make e.g.: ICICI Pru life link Wealth SP plan. Top ULIP plans are usually the ones with favourable ULIP premiums, long term investment and a good life cover with a decent mortality charges.
Understanding the peculiarities of the ULIP rates and their growth rates and making the investment in life insurance wealth plan especially in a ULIP will give the best results.
Bajaj Allianz is a renowned general insurance company in India with a robust track record in providing life insurance policies, Best ULIP Insurance plans, term insurance plans, car insurance and health insurance plans. You can browse through their unique product and service offerings on their website.