Ulips offered by different insurers have varying charging structures.
It is not that Ulips don't disclose the information on analysis.
Both Mutual Funds and Ulips investing are associated with several charges.
This exercise, if done well, makes the process of choosing Ulips easy.
Ulips(Unit-Linked insurance Plans)--
which are a combination of life insurance and investment plans.
In debt-orientated Ulips, the customer's money is invested in an appropriate debt fund.
The general public mistakenly assumes that Ulips are related completely to the equity marketplace.
These benefits and flexibilities make Ulips an ideal solution for investments with insurance cover.
On the contrary, Ulips offer exquisite flexibility through permitting investments in either equity
or debt or both.
It is also often called Ulips, which falls underneath the record of high 10 finest
investment options in India.
In India, there are several different forms of Ulips available that include retirement,
wealth, children's education and health plans.
But, you can't withdraw your investments from Ulips unless the minimum lock-in period of 5 years gets over.
Ulips allow the investors to invest in multiple options, ranging
from low-risk to high-risk as the case may be.
In Ulips, an investor can switch from one investment
fund to another depending on the market conditions and risk appetite.
Also, these collection centres don't
accept payments for the LIC policies that fall under Ulips and SSS(Salary savings Scheme) category.
In the case of Ulips, a significant portion of your premium is actually spent towards costs,
in the initial five years.
The potential returns on Ulips are lower since the Ulips fall is
a member of low-risk product, unlike a mutual fund product.
Long term investment: Ulips are a long term investment option
that occur because of increased lock-in period that also reap bigger returns.
Ulips for Health Benefits: In addition to some common benefits,
unit linked insurance plans efficiently provide financial assistance to meet medical contingencies.
Initially, Ulips was not an ideal tool as it didnt
offer assure retursn and primarily focus on long term wealth generation product.
These Ulips invest the insurer's cash in the market
and not simply in life coverage thereby making your financial savings develop drastically.
Ulips are undoubtedly one of the best financial
instruments that not only grow your investment but also provides protection to your family.
When someone invest money in Ulips, the insurance company divides the amount between equity markets(shares,
bonds etc.) and online life insurance plans.
Typically insurance plans like Ulips which provide the investor with life cover
and invest in the financial market have a lock-in period.
Apart from term plans, Ulips, child plans,
traditional saving plans, pension plans are some of the others that should be earning a mention.
But, Ulips allow you only to switch your investments from equity to debt
or debt to equity but only within the same insurance house.
In fact, many experts have stated that Ulips have become more profitable than equity
oriented Mutual Funds after LTCG tax has come into effect.
Life insurance plans such as Ulips offers flexibility for asset allocation that suits specific risk needs,
searching options and multiple premium payment options as well.
Be it a simple life insurance plan or a provident fund,
those intense Ulips or a regular and simple Systematic Investment Plan,
investing should be a habit.
Investment and Life Protection: Investing in Ulips helps to inculcate the habit of saving and investing,
both of which are essential for building long term wealth.