A step towards laying the foundation of secured future

Life is unpredictable but the future is not. You can certainly predict a secured and safe future if you take a concrete step today towards it. However, with the rising inflation, changing lifestyle pattern, volatile markets scenario, it has become an uphill task. The best way to cope up with this is to invest regularly so that you earn as the markets rise. And if you getting an insurance cover with a good investment returnit’s like the icing on the cake. ULIP are such plans which offer you the dual benefits of both - a life insurance and a good investment in the market. They are certainly more customer-friendly and transparent. The best feature of such a policy is that it ensures that you money is invested without you having to bother about it. In a ULIP the amount earned is received by the insured at the end of the term of maturity. In an event of death of the insured the amounts earned shall be paid to the beneficiary. While the market is filled with loads of ULIPs offering its customer, the major concern remains how to choose the best ULIP insurance policy that caters to your needs.

The article will provide with some tips that buyers should keep in mind while choosing the best ULIP insurance policy which fits into their needs. Remember the simpler we keep things the better it gets and the best is what we achieve. There are several variants of ULIPs in the market today. Some of these are structured products, which offer you a guaranteed highest NAV or capital protection. It's better to invest in a plain ULIP policy that invests your money in equity, debt and cash in the proportion decided by you. Secondly, we suggest, buy this investment-cum-insurance plan when you have purchased enough insurance cover with a pure protection term plan.

Your insurance policy should not affect any of your other financial commitments. Initially when you’re young it’s easy to set aside a big sum because your liabilities are limited. But as and when you start a family or buy asset your expenses start to shoot up which too needs to be attended. If the premium is very high, the policyholder may find it difficult to pay it year after year. Under the new ULIP rules, you cannot take a premium holiday. If you stop paying the premium, the policy will be discontinued. So, buy only if you can continue the plan for the full term.

The switching facility is a key feature that differentiates ULIPs from a mutual fund. You can use it to shift money from debt to equity, and vice versa, depending on your expectation of the market movement. However, very few investors know about this feature and barely are actually using it regularly. Learn to use the switching feature so that you can proactively change your asset allocation. Experts suggest done at least once in 12-15 months helps to yield better returns from your investments proving it one of the best ULIP insurance policy chosen for yourself.

The death benefit of ULIPs varies depending on the type of plan you have opted for. Type I ULIPs give out either the sum assured or the fund value, whichever is higher and Type II ULIPs give out both the sum assured as well as the fund value. Although, Type II option certainly appears better, however, the mortality charges of a Type I ULIP progressively come down as the fund value goes up. So think carefully about the policy which proves beneficial for you and gives monetary gains as well.

You cannot just rope a plant and expect getting fruits within couple of weeks. For better returns you need to wait for the good times. If you take a short-term ULIP plan of 5-10 years, it will not be able to generate any significant returns. However, given ULIP at least 15 years, it will give you some very decent returns making you feel proud for choosing one of the best ULIP insurance policies of your financial plans.

tags# Best ULIP Insurance Policy, ULIP Plan Comparison, Best ULIP Insurance Plan