4 Tips To Help You Choose The Right ULIP Insurance Plan
Due to various media and campaigns from insurance houses, investors these very well know the purpose and the benefits Unit Linked Insurance Policy offers. However, just as any other investment option investing into right ULIP is must if you want to get the most of your investments.
When it comes to buying ULIP insurance, most of us are clueless or confused over how to choose the best ULIP, which is natural considering a variety of plans available in the market. Here we’ve got four major factors you should look for while buying ULIP.
1. Available plans and returns
Are a variety of plans and options available. Understand that different plans offer different benefits as well as ULIP returns on investment. The major funds you need to know and consider for ULIP policy are - equity, debt funds, and balanced funds.
Signing up for any plan, check what investment options they linked to. That way you’d know what kind of risk you’re undertaking and returns and other ULIP benefits you’d receive over the years.
2. Cost of ULIP
An important factor to consider is ULIP cost. Other than premium and basic charges while buying ULIP plan, you’ll have to look for allocation charges, mortality as well as fund management charge.
Forget to look for the bonuses as well. Some ULIP plans award you additional units. These bonuses help you build a large corpus over the long-term. Apart from these product features and ULIP benefits, you also need to check maturity payout difference various plans offer. Before you invest in any plan, check the performance and track record of the fund.
3. Flexibility while switching plans
Unique advantage ULIP insurance plan offer is that you can switch to different funds. This gives you a greater advantage and scope to decide between other fund options. The plus point here is you don’t have to transfer your funds completely; many insurance companies allow partial transfer as well to help get the most benefits.
4. Flexible premium payment options
ULIP plans come with different options for premium payment. You can choose whichever payment frequency you’re comfortable with. These plans offer annually, biannually, quarterly and monthly premium payment frequency.
You don’t keep track of due dates every often you can go for a one-time premium payment option.
Early start, persistence, and continued investment can yield high returns and better benefits out of ULIP insurance plan. Remember your main focus while buying ULIP should be a life cover. Thus, set enough assured sum that’ll cover basic needs, expenses, and be that financial security net whenever the need arises.