k SALIENT FEATURES OF ULIP PLANS
1) An innovative aspect of ULIPs is the ‘Top-Up Facility’.
A top-up is a one time additional investment that is paid apart from the annual premium of the policy. This feature works well when you have a surplus that you are looking to invest in a market linked avenue. ULIPs also have the facility that allows you to skip premiums if you have paid your premiums regularly for the first three years. For instance, if you have paid your premium then the insurance company will make the necessary adjustments from your investment surplus and will make sure that the policy remains active. But it is always advisable to pay the premiums regularly to avoid troubles. Such facilities are not available with any other policy. This makes it a differentiating factor when compared to policies like endorsement, term or money back policies.
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2) Another important feature is that ULIPs disclose their “Portfolios” regularly. This gives you an idea of how the money is being managed. Another important aspect is its “Liquidity Factor”. Since ULIPs investments are NAV based it is possible to withdraw a portion of your investments before maturity. It is possible only after the completion of the lock-in period. Such facility is not available with in a traditional endowment policy. With ULIPs one can also avail the tax benefits which is offered under section 80C. This is subject to a maximum limit of Rs. 1,00,000.
1) An innovative aspect of ULIPs is the ‘Top-Up Facility’.
A top-up is a one time additional investment that is paid apart from the annual premium of the policy. This feature works well when you have a surplus that you are looking to invest in a market linked avenue. ULIPs also have the facility that allows you to skip premiums if you have paid your premiums regularly for the first three years. For instance, if you have paid your premium then the insurance company will make the necessary adjustments from your investment surplus and will make sure that the policy remains active. But it is always advisable to pay the premiums regularly to avoid troubles. Such facilities are not available with any other policy. This makes it a differentiating factor when compared to policies like endorsement, term or money back policies.
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2) Another important feature is that ULIPs disclose their “Portfolios” regularly. This gives you an idea of how the money is being managed. Another important aspect is its “Liquidity Factor”. Since ULIPs investments are NAV based it is possible to withdraw a portion of your investments before maturity. It is possible only after the completion of the lock-in period. Such facility is not available with in a traditional endowment policy. With ULIPs one can also avail the tax benefits which is offered under section 80C. This is subject to a maximum limit of Rs. 1,00,000.
1 comments:
Thank you for sharing such great information. It is informative, can you help me in finding out more detail on Ulip Insurance India,Best Ulip Insurance Plan
Best Ulip Insurance plan,i am interested and would like to know more about this field and wanted to understand the basics of ulip insurance policy.
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