ULIP Investment Plan

Some of the main benefits of choosing an investment plan are as follows: Death Benefit: This refers to the fund value/amount that will be paid in the event of the death of the policy holder/insured. This amount is also called ‘Sum Assured.’ Maturity Benefit: This refers to the fund value that will be paid to the ULIP investment plan holder in case of his/her survival. This is also called ‘Maturity Benefit.’ Tax Benefit: As the term itself suggests, a ULIP plan holder can claim the insurance amount paid as investment premiums, as a tax benefit of up to Rs. 1.5 lakh, under section 80C of the Income Tax Act.

SIP is the abbreviation of Systematic Investment Plan and is just a way of investing in mutual funds. The benefit of investing in a SIP is that you can regularly invest in mutual funds thus creating a good savings plan. On the other hand, a ULIP is a financial product that offers the combined benefits of life insurance and an investment plan like a mutual fund. In a ULIP, a portion of the premium is set aside which is added towards your sum assured and the remaining amount is distributed in some of the best long term investment plans such as equities, fixed returns or a mix of both.

ULIPs offer life cover: While mutual funds are just an investment tool, a ULIP offers you the dual benefits of an investment plan and also life insurance. Thanks to our partnership with Bajaj Allianz, you can now go with the best one-time investment plans in India. Also, you can do all this, online. ULIPs are designed while keeping investor interests in mind: A typical ULIP investment plan offers three options - equity options with high returns, moderate/safe debt options as well as a balanced option. This takes into consideration the risk appetite of the investor, whether he/she prefers to take an aggressive approach or stay safe and calculated. Fund switch option: If you choose to go with a mutual fund, you are left with just 2 options should the market not perform well – continue to invest hoping that the market will rebound and start performing better or surrender the fund. On the contrary, a ULIP allows the policy holder to switch funds as and when needed, based on market performance. Minimal charges involved: When choosing a ULIP investment plan, there is a charge involved for allocation of the premium. As per IRDA, this is capped at 1.35%. What’s important to know is that these charges are applicable only during the initial years of investment and begin to reduce, then eventually disappear altogether. Tax Benefits: As you may be aware, ULIP premiums are tax-exempted up to Rs. 1,50,000 under section 80C of the Income Tax Act. Also, ULIP returns are also tax-exempted. This is not the case with mutual funds as only a few select funds enjoy this benefit.

Should you choose to invest in a ULIP plan offered by our partner Bajaj Allianz, you will receive policy statements on a regular basis. This will keep you informed about your fund, its performance and its value as on the anniversary date. You can also log on to our customer portal and view your investment policy and its performance.

Yes, you can change the mode of premium payment for active polices on the anniversary date.

Sure! Here are four portfolio strategies that you can invest in, should you choose to go with our partner, Bajaj Allianz – 1. Investor Selectable Portfolio Strategy, 2. Wheel of Life Portfolio Strategy, 3. Trigger Based Portfolio Strategy, and 4. Auto Transfer Portfolio Strategy.

The funds include: 1. Equity Growth Fund II, 2. Accelerator Mid-Cap Fund II, 3. Pure Stock Fund, 4. Asset Allocation Fund II, 5. Blue-chip Equity Fund, 6. Bond Fund and, 7. Liquid Fund.

Traditional saving plans don’t offer policy holders the freedom to choose the funds/assets of investment. This decision lies with the insurance provider. Also, a traditional plan offers returns as sum insured along with the bonus (if and when this is disclosed). The bonus here is dependent on the profit margin of the insurance providers and its declaration again lies with the insurance company. Moreover, since returns are assured here, a large chunk of the premium is invested in securities that are risk-free, as directed by the Insurance Regulatory and Development Authority of India(IRDAI). The best online ULIP investment plans offer the dual benefit of life insurance as well as investment in assets (equities/debt) based on the choice and risk-appetite of the policy holder. There is a minimal charge involved in the allocation.

This is the term applied to any additional benefit that is offered over and above a base plan at an extra cost. However, riders cannot be bought alone. The investment premium payment term and the policy term is the same as the base plan. Also, the sum assured of a rider cannot exceed that which is mentioned in the sum assured of the base plan.