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How to Maximize Your ULIP Investment Gains

By Finserv MARKETS - Apr 26,2019
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How to Maximize Your Gain from ULIPs

Given its dual benefits, Unit Linked Insurance Plans are one of the most popular long-term investment options available in the market today. The Life Insurance component of ULIP ensures that your loved ones always stay financially protected against life’s uncertainties, while the investment component helps you generate inflation-beating returns to fulfil your life goals. Although these plans are known to generate excellent returns, there are several simple ways to maximize your ULIP returns. Here’s how to do it:-

Switch Funds

All unit linked insurance plans allow switching of funds. If you use this feature wisely, you magnify your gains to a great extent. When the share market is bullish, you can reap its benefits by switching to equity funds. On the other hand, when the market is down, switching to debt or balanced funds is a good option. Most policy providers offer free switches or may charge a nominal fee for switching.

Analyze Economic Scenario

This step is complementary to the switch option. In order to switch your funds favorably, you need to be aware of the current economic climate as well as the forecast, both for national and global markets. Leading indicators like crude oil price and international political tension, play a vital role in determining market performance and thereby the returns on your investment.

Life Stage Requirements

Your financial goals play a crucial role in defining your risk appetite. For e.g. providing for your child’s education requires long-term planning. In such a situation, equities should take up early to mid-tenure of an investment plan. Once you have built the required corpus, you should switch over to debt funds. That way the saved corpus can be used to pay admission fees.

Pay Your Premiums Regularly

ULIP plans do involve certain charges such as management charge, policy administration charge, mortality charge, surrender charge, etc. which are deducted at the time of activation. If you pay your premiums regularly, some of these charges are paid back to the insured as loyalty addition. Moreover, by inculcating a regular saving discipline, you can generate compounding returns on investment in the long run.

Don’t Ignore Insurance

When it comes to maximizing returns for ULIPs, the main focus is always on the investment component. However, that does not mean you should ignore the other component – Life Insurance. Life is full of uncertainties and hence, the least we can do is be financially prepared for eventualities. So make sure your plan provides a substantial sum assured that can support your family no matter what.

Surely, all of these factors can boost your ULIP fund value. On our platform, we enable you to make informed decisions and help you to maximize the returns on your investment. You can choose from a variety of ULIP plans like Bajaj Allianz Future Gain and Bajaj Allianz Goal Assure from Finserv MARKETS and start building your future right now!

Finserv MARKETS, from the house of Bajaj Finserv, is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment, and exclusive EMI store, all under one roof- anytime, anywhere!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522