India is the country with massive population where there are always risks associated with life and health. And we all wish to have some sort of future savings, retirement savings, child education savings etc. Each one of us wish to care about our family in our own best possible way and ensure their financial security if we are suddenly not around to fulfill our responsibilities towards them. Although life insurance is there to protect your family’s future, however, with the inflating economy rates, changing lifestyle patterns and stiff competition often the sum assured proves insufficient to fill up these gaps. Therefore, insurance market has come up with investment-cum-insurance plan that offer dual benefits of investment in the capital markets along with insurance. Thus, it not only gives peace of mind but also an opportunity to earn some high returns from various financial resources of the markets.
The article guides you through some points to choose the Best unit-linked insurance plan (ULIP): Pick a ULIP policy that offers a wide range of options across various investment vehicles such as Equity funds, Debt funds, balance funds, stocks, etc. The more options you have the best ULIP insurance plan you can create and that can cater to your needs. Since buying insurance requires lots of permutations and combinations, it is always better to choose easier modes to buy one such as online. Online site is a great place to start as they help you compare easily to the cost of insurance and also provide you variety of options to choose as per your requirements. Compared to old ULIPs, the new ones stand out in terms of features. They provide better avenues for wealth creation along with adequate cover. While creating your best ULIP insurance plan look for ULIPs with lowest expense and high returns over the time. The expenses can be compared easily enough since the information is widely available on company websites in a transparent manner. Opt for ULIPs that invest the entire premium, meaning the premium allocation charge is zero. Look for policy term flexibility. So a ULIP with a policy term of 5 to 20 years is better than a ULIP with a policy term of 10 to 20 years as options are always available to surrender or switch the policy just in case you are not happy with one. The flexibility in the payment options of your premium also counts a lot. Arrange for an amount that you can pay towards your premiums and then choose the one which fits into your best ULIP insurance plan. ULIPs mainly offer a death benefit that is the higher of the sum assured and fund value. Some insurance companies also offer an attractive third option of a percentage of the premiums paid for instance 105% of premiums. This means the individual gets the higher of the three amounts – sum assured, fund value and premiums.
ULIPs are a good investment tools for not so savvy investors. "Not everyone has the capability to handle portfolios prudently. But anyone can buy a ULIP, stay invested for long term and enjoy the life cover and simultaneously reap the benefits of equity or debt investment. Once you figure your needs you can create the best ULIP insurance plan that can secure and insurance the future of you and your loved ones.