Best Ulip Plan

A ULIP is a unit linked insurance plan

A ULIP is a unit linked insurance plan. This is the type of investment where the characteristics of insurance and mutual fund are combined. Some part of the money invested goes into the insurance cover and the remaining goes into an asset class. The three important things to remember about a ULIP is that entry costs are high and the brokerage, commission could be as high as 30% of the premium in the first year. The second thing to remember is that management fee is low in a ULIP at around. The price of an insurance cover is higher in a ULIP than in a plain vanilla insurance policy. To that extent if a person has the time and inclination to research he would be better off buying separate insurance and mutual funds. The third point that one must keep in mind is that in India one gets a tax rebate of a maximum of Rs. 100000 on investing in ULIPs.

Features of a Unit Linked Insurance Plan

Unit linked insurance plan (ULIP) is life insurance solution that provides for the protection and flexibility in investment. The investment is denoted as units and is represented by the value that it has attained called as Net Asset Value (NAV). The policy value at any time varies according to the value of the underlying assets at the time.

ULIP provides multiple benefits to the consumer. The benefits include:

Life protection

Investment and Savings

Flexibility - in Sum assured, to increase the sum assured, investment, etc

Adjustable Life Cover

Investment Options

Transparency

Options to take additional cover against - Death due to accident, Disability, Critical illness etc

Liquidity

Tax planning

Unit linked Insurance plan provides insurance protection against the risk of death combined with a provision for long term investment in the equity market, which are structured differently.

ULIPS are basically an investment type of plan, wherein the Life assured decides the quantum of contribution which he can set aside on a regular basis towards premium. He also has the flexibility to decide the risk cover, i.e the Sum Assured for his policy.

ULIPs address and overcome several concerns that you have as an investor about life insurance like liquidity, flexibility, and transparency or the lack thereof. No wonder ULIPs are termed as one of the most significant innovations of the recent times introduced by the insurers.

For more information on Best Ulip Plan you can visit http://insuremegenie.com/

by: Rakesh Mishra

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