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Earn interest up to 7.75% p.a. by investing in a Bajaj Finance Fixed Deposit | Rated CRISIL AAA/ STABLE and [ICRA]AAA(stable)

Ensuring the financial safety of your loved ones is a must, and securing your future by making the right investment choice is just as important. With Unit-Linked Insurance Plans, you can avail a risk cover and meet your life goals at the same time. Moreover, ULIPs are an excellent tax-saving instrument as the premiums and the maturity benefit can be claimed under the respective income tax sections.

Lately, ULIP has gained popularity amongst investors due to its increased returns and features. With the opportunity to invest in equity-oriented funds, ULIPs enable you to meet your life stage goals and plan your investments likewise. So, let’s explore some tips on how you can invest in ULIPs at a lower cost and save your money.

Tips to Invest in ULIPs at a Lower Cost

Check out some key ways to avail best ULIP plans with low charges and affordable rates:

  • Opt for Online ULIPs

In today’s day and age, almost everything can be purchased online and the insurance industry isn’t far behind. With just a few clicks, you can begin investing in Unit-Linked Insurance Plans in no time. When you opt for the online mode of purchase, there are no intermediaries involved in the process.

Thus, you can enjoy lowered premium allocation and policy administration charges with online ULIPs. Furthermore, the online mode of purchase also enables you to conduct a thorough comparison of the various plans available online. So, you can shop within your budget and get a suitable insurance plan online.

  • Stay Invested for the Long Term

ULIPs come with a mandatory lock-in period of 5 years. Essentially, it means you can exit or discontinue the insurance plan after completing the tenure. However, you can also choose to continue your investment for a longer period without withdrawing any funds. The benefit of staying invested for the long term is higher returns from your ULIP investment.

During the lock-in period, the premium invested towards the chosen fund is lower due to various ULIP charges. However, with time, the impact of these charges decreases, causing more of your premium to be invested in the fund. Therefore, by holding your ULIP for over 10 years, you allow your returns to grow and provide lucrative returns.

  • Pick a High-Value Life Cover

Drawing from the above point, if you invest for the longer term, you will be able to create wealth over a period of time. For increased benefits, it is also advised to invest in ULIPs with a higher premium as it would mean two things. First, you can claim the entire premium under Section 80C of the Income Tax Act, 1961. Second, a higher premium is equal to a higher life cover. Thus, it is a win-win situation!

However, you must remember that you can claim a maximum amount of ₹1.5 lakh per financial year. Moreover, the annual premiums should not be more than ₹2.5 lakh to avail tax exemption on the maturity proceeds. So, you must choose a suitable insurance cover keeping the ULIP tax benefits in mind.

  • Factor in Your Age

It is recommended to steer clear of Unit-Linked Insurance Plans if you are over 50 years of age because of high mortality charges. The price you would end up paying for a life cover would be very high. Hence, it is recommended to factor in your age while opting for ULIPs.

  • Consider the ULIP Charges

There are some features available in your ULIP policy that you can use by paying a flat fee. Some of these include fund switch fees, partial withdrawal fees, premium discontinuation and redirection charges, surrender fees, etc.

The insurance provider allows you to use these features for free a limited number of times. On exhausting these, you will have to pay each time. But keeping a tab on these charges, you can enjoy a low-cost ULIP policy without any trouble.

Over to you

With this, you can invest in the best ULIP plan with low charges to create wealth for the long term. Be it for a peaceful retirement, a financially independent future for your child or to fulfil life goals, we have got your back. Learn the ULIP fund performance before you begin your investment journey!

Moreover, you can ensure your loved ones are secured with ULIP, in case of an unfortunate mishap. So, don’t put it off any longer and visit us at Finserv MARKETS to purchase a lucrative ULIP plan today!

FAQs on Low-Cost ULIP

✔️Is it worth investing in ULIPs?

Yes. Unit-Linked Insurance Plans are a unique type of policy that offers a life cover along with an investment component. By staying invested for the long term, you can earn lucrative returns from ULIPs. Begin your ULIP investment journey with Finserv MARKETS today!

✔️What are the various ULIP charges levied by the insurance provider?

Following are some key ULIP charges that are applicable to your investment:

  • Premium Allocation Charges

  • Fund Management Charges

  • Mortality Charges

  • Premium Redirection Charges

  • Surrender Charges

To learn about these ULIP charges in detail, head over to our platform now!

✔️How can I purchase ULIPs online at Finserv MARKETS?

With the below-mentioned steps, you can buy ULIPs online at Finserv MARKETS:

  • Go to the ‘ULIP’ section on Finserv MARKETS

  • Choose the type of insurance plan that suit your needs

  • Input the details required in the application form

  • Upload the necessary documents

  • Pay the premium online

  • The ULIP policy document will be sent to your registered email ID

  • With this, you have successfully bought ULIP policy online

✔️Is it safe to invest in ULIPs?

Yes. Unit-Linked Insurance Plans are a safe investment option for policyholders. To secure you from market volatility, ULIPs enable you to switch funds from equity to debt or balanced funds. However, to earn stable and good returns from your investment, it is advised to opt for long term ULIPs.

✔️Which is a better investment option, ULIPs or Mutual Funds (MF)?

Both investment options have their respective pros and cons that you need to consider while investing your hard-earned money. With a comparative view on ULIPs Vs Mutual Funds, you can understand both these financial instruments in detail!