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. ULIPs are very 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 the priority, investment in ULIPs can
be done accordingly. Best 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 ULIPs are the ones which will mention all the deductions clearly
before the investment and flexibility options after investment.
Choosing the best ULIP 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 Top ULIP Plan are usually
the ones with favorable ULIP premiums, long term investment and a good life
cover with a decent mortality charges. Understanding the peculiarities of the
ULIP rates and their growth rates and making the investment in life insurance
wealth plan especially in a ULIP will give the best results.
Source: http://blogs.rediff.com/bestulipinsurancepolicy/2016/07/05/ritikashah11998-39/
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