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Top 3 Flexible Benefits That Unit Linked Insurance Plans Offer!

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By Author: Unit Linked
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Investments are no longer just about saving for a rainy day. People invest in getting the best possible returns on their investments to achieve their life goals and aspirations. Over the last few years, Unit-Linked Insurance Programs have emerged as a preferred choice of investment. The program meets the dual purpose of providing life cover along with returns from investment to fulfill financial goals. Also, unit-linked programs offer tax benefits.


What is ULIP?

Unite Linked Insurance Plan (ULIP) is a product offered by insurance companies that give investors both insurance and investment under a single integrated plan, unlike a pure insurance policy.

So before you decide to invest in ULIPs, it is essential to be clear about the many advantages that policyholders or investors can derive through ULIPs.

Benefits of ULIPs & 4 Good Reasons to Invest in it

Below are some of the benefits offered by Unit Linked Insurance Policies (ULIPs) –

• Offer flexibility
• Offer transparency
• Encourage goal-based savings

3 Reasons You Should Invest in ULIPs –

1. ULIPs Offer Flexibility
Flexibility to choose your fund option: Most insurance
plan come with a range of equity, debt, and balanced fund
options to choose from. As a result, you can invest your
money as per your financial needs and risk appetite. They
also allow you to move your money between different funds to
help you earn maximum returns.

Flexibility to change your life cover: You’ll have the
flexibility to choose your ‘Sum Assured’ at the beginning of
your policy. Moreover, some insurance plans also allow you to
increase your Sum Assured over the term of your plan to cover
your protection needs at different stages in your life.

Flexibility to change your premium amount: Insurance
programs allow you to pay a top-up amount, over and above
your existing premium. You can use this option to increase
the returns from your investment.

Flexibility to opt for a rider: Riders are optional
features you can choose to customize your ULIPs and get
additional protection. One of the commonly offered riders is
the Unit linked
disability and accident benefit rider. It increases the Life
Cover amount and ensures that your Life Cover continues in
case of disability caused by accident.

2. ULIPs Offer Transparency

The ULIPs charges are transparent and enable you to make informed decisions with the help of the following features:

Benefit illustration: It is your right as a customer
to ask for a sales benefit illustration. This will help you
understand the usage of the premiums and the charges deducted
during the policy term. This also informs on the possible
growth based on the chosen premium.

Product brochures and key feature documents: While
benefit illustrations explain the measurable aspects of
ULIPs, it is also essential to understand the other benefits
and features offered by ULIPs.
You can go through the product brochure to understand the
policy benefits in detail. Once your policy is issued, you
will get a key feature document explaining the key features
of the plan. This will ensure your complete understanding of
the program that you have purchased.

Free-look period: Life insurance plans including,
ULIPs, come with a free-look period, during which you can
return the policy if you are not satisfied with it.

Net Asset Value (NAV): It is essential to monitor the
performance of your policy regularly. To help you do this,
the company publishes NAV daily. NAV is the price at which
the units of a fund are purchased. An increase and decrease
in the NAV price give you an indication of the performance of
your funds.

3. ULIPs Encourage Goal-Based Savings

You need to save to achieve your life’s important goals, such as providing higher education to your children, ensuring a comfortable retirement, or buying a home. ULIPs are long-term systematic investments, which are one of the most practical ways to do so. Designed to address critical financial goals, they help you invest your money in a disciplined manner.

At Unit Linked, we are the most trusted insurance company aimed at the Russian-speaking population of the whole world and providing access to all available Unit Linked programs. Select from our many program types, and in case of any confusion, don’t forget to visit us today at unit-linked.

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