Unit Linked Insurance Plans: One Of The Smartest Investment Options
ULIPs - Unit Linked Insurance Plan (also known as wealth insurance plans) is a package of financial solutions that include the safety of insurance cover with wealth enhancement possibilities. In a ULIP, a part is reserved for life cover and the rest is invested in stocks and bonds as funds. This investment is dependent on the performance of the underlying fund that is chosen by the investor. ULIPs with its two in one arrangement keeps the protection and savings elements distinguished. Best ULIP Insurance Policy is flexible and transparent which enables the investor to customize the plans as per the need and unlike other plans once invested, the plan remains unchangeable.
Types of ULIPs include Retirement, wealth, children's education and health plans. Depending on your priority, you can choose the Best ULIP Insurance policy which can fit into your needs. Usually, good ULIPs are the ones which have the appropriate life cover, right fund option and a long term investment. In ULIP insurance plans, the charges applicable are well bifurcated. The ULIP charges usually include Policy administration charges, ULIP premium allocation charges, mortality charges and fund management charges. Policy administration charges are deducted on a monthly basis, premium allocation charges are deducted from the premium amount that the investor pays and is used for medicals, cost of underwriting and distributor's fees. The amount that remains is invested in the fund that is chosen by the investor.
Mortality charges are also deducted on a monthly basis. It is the sum assured for providing a life cover to an individual and will vary as per the fund value selected. Depending on the fund chosen, fund management charges are also deducted by the insurance company for the maintenance of these funds. Best ULIP is the one which will mention all the deductions clearly before the investment and flexibility options after investment.
Choosing theBest ULIP Insurance Policy rates is very easy provided certain criteria are considered before investing. Understanding the plan, ULIP charges implied, comparing different products offered by different companies and going for the best ULIPs that fits the need will work well. One can buy ULIP online if they are clear about the kind of investment they want to make.
Despite of the good points of ULIPS and the risk involved in them - the big question is - are ULIPS better than the traditional insurance plans?
It all depends upon you - when you take an insurance policy and are naïve, you depend totally or partially on your basic instinct. Same is the case with ULIPS. When you take a ULIP, even if you are not aware of the stock market trends, you rely upon your basic income, forecasted income and your basic instinct. Calculated along these factors you choose the unit linked insurance plan.
For those who are naïve, can choose the Best ULIP Insurance policy fitting in their needs and which will give them better than a basic money back plan as well as the certainty of a good insurance plan. After all, the idea is to buy an insurance plan which gives the benefit of protect and gain along with life insurance.