ULIP is a Market linked insurance plans, which invests the premium in to the stock markets in terms of equity, debt and cash by the way of allocating units, which like any other mutual fund have a NAV but in insurance plan the customer has to pay at least three premium in consecutive first three years when the policy starts otherwise policy will be lapsed, depending on the policy features. Against the premium he gets life coverage and better return than traditional endowment plan. He can switch from one fund class to another depending on the market status if he wishes to be in. But the customer can not withdraw their fund within first three years from the policy starts.
The customer can withdraw their fund partly or completely after three years if he needs. There are many single and regular premiums having many fund options like index fund, mid-cap funds, debt fund and equity fund etc. He can also save his tax under the benefit of u/s 80CC and get exempted return on the completion of policy under the benefit of u/s 80D. In ULIP plan there is flexibility to increase and decrease regular premium depending on the customer needs. A ULIP policyholder has the option to choose fund class which he has to invest in, depending on his risk profile. If one can not take the risk to invest in equity, they can invest into a debt or balanced fund or cash fund. There are various charges in plans, like the fixed administrative charges, the fund management charges, mortality charges etc., not only in the first year but also throughout the policy term. Funds are managed by fund manager, In spite of that the customer can shift his fund from one fund class to another.
Last but not least, insure with a brand you can trust to honor its commitment and service you according to your requirements.
The customer can withdraw their fund partly or completely after three years if he needs. There are many single and regular premiums having many fund options like index fund, mid-cap funds, debt fund and equity fund etc. He can also save his tax under the benefit of u/s 80CC and get exempted return on the completion of policy under the benefit of u/s 80D. In ULIP plan there is flexibility to increase and decrease regular premium depending on the customer needs. A ULIP policyholder has the option to choose fund class which he has to invest in, depending on his risk profile. If one can not take the risk to invest in equity, they can invest into a debt or balanced fund or cash fund. There are various charges in plans, like the fixed administrative charges, the fund management charges, mortality charges etc., not only in the first year but also throughout the policy term. Funds are managed by fund manager, In spite of that the customer can shift his fund from one fund class to another.
Last but not least, insure with a brand you can trust to honor its commitment and service you according to your requirements.
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