Unit Linked Insurance plan in short known as ULIP is a big investment tool that includes multiple benefits, investment and life insurance coverage. If you are looking for a long term investment which offers you market-linked returns, then ULIP plan is the right insurance cover for you.
The basic features of ULIP plan can be discussed as:
Life Insurance Cover: It provided life insurance cover to the insured one.
Investment and Savings: It is a good investment and savings plan. The policy holder can invest in funds.
In a ULIP plan there is always a safety need of a policyholder because of its higher customizability. In some plans there are customer fees like withdrawing funds, providing analytical services to the customer.
ULIP plans allow the policyholder to invest in a mutual fund or in various bonds. It differs from a mutual fund as it provides additional life cover. Some insurers provide a list of mutual funds in which the insured one can invest.
Some insurance providers offer ULIP plans and it seems complicated to some people. The purchasing a ULIP plan depends how your fund money is invested. The funds in which ulips are available are equity funds, balanced funds, debt funds, etc. The premiums are of the types like one time lump sum and periodic like annual, biannual, monthly, etc.
While choosing a ULIP plan, study the total life insurance it covered, the premium for risk cover and all other charges. The funds which can be invested from a ULIP is the balance amount left after deducting the premiums and charges. The investment risk is not taken by the insurer; it is a risk of the policy holder only.
Here at mantra4money we can guide you which ULIP is best one for you. Compare the premiums and fund investments of each ULIP and get the right one.
Tell me the ABC of life insurance.
Life Insurance is a contract between the insured one (policy holder) and the insurer (the company). It protects your family against any risk in future. As the insured one gives premium to the company planning a policy, the company in return gives the assured sum to the policy holder on the maturity. If the policy holder dies before the maturity period, the beneficiary gets the assured sum.
I am only breadwinner in my family. Do I need life insurance?
If you have family, you must need a life insurance policy. As you are the principal earning member in the family, a life insurance would save your family in case of your premature death. Besides, your life insurance policy is a long term investment which would give you a high returns in your retirement or at the time of your child’s future needs.
Can a single policy cover more than one and have more than one nominee?
Yes, a single policy can cover than one. It can have more than one beneficiary or nominee.
I am not a wage-earner. Do I need a life insurance?
If you do not have dependents, you do not need a life insurance policy. Yet if you have a good earning and assets, you can plan a life insurance policy to get tax benefits. Moreover, you can make your beneficiary a charity house.
For which purposes do I plan a life insurance policy?
The main purpose is you have to protect your family or friends in case of your death. Besides, you can use your life insurance policy for your estate protection, mortgage protection, to fund a retirement, to protect your business, employment benefits, etc.
How can a life insurance help my family to settle my any kind of liability, like home loan?
A life insurance policy is especially for your family. Your sudden demise could fall them intro trouble. Your dependents or family gets the sum assured by the company if you die. Then the assured sum is paid to the bank or financial institutions from where the loan is taken.
Should I purchase a big policy?
The sum assured by the company for your policy should meet your family’s expenses along with your liabilities. So we suggest you to take guide from a professional insurance expert who can calculate your requirements and guide you which one is the most suitable for you.
Which are the life insurance policies available in the Indian market?
The life insurance policies available in the market are
Term life insurance policy
Endowment life insurance policy
Money back life insurance policy
Whole life insurance policy
Unit Linked Insurance Plans
Which life insurance is good for me?
For some it could be money back or for some it could be unit linked plans. It depends on various factors, how many dependents you have, what is your monthly or yearly income, etc. So, take guide from a professional insurance adviser. Yet, we suggest you to go for a term insurance plan, the cheapest form of life insurance. Along with life insurance you can take for riders such as critical illness rider, personal accident rider, etc.
Do I have to pay extra premium if I opt for rider in my insurance plan?
To take critical illness rider in your life insurance plan you do not need to pay additional premium. In case of your critical illness or accident the policy would pay off your medical bills.
Could I change the beneficiary on my life insurance policy?
Yes, you could change the beneficiary at any time you want.
Could I want to name a person as my beneficiary on my life insurance policy who is not my relative?
Yes, you can name other person as beneficiary other than relative. You can name as beneficiary your spouse, children, relative or friend. If your beneficiary is a friend, you will put his name correctly to avoid any confusion. Besides, you can also make beneficiary a charity, or trust.