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  • 6 steps to get the best ULIP plan in India

    Published on April 15, 2019

    Picking the right ULIP Plan might seem like an easy task. But if not known how to do it the right way, it can turn into a headache. The best way to do so is by seeking help from an expert rather than getting lost in a pool of searches.

    With increasing popularity amongst the investors, ULIPs have become a go-to in order to attain all your goals. It proves as a worthy investment only when you understand all the intricacies of the policy and know where and how to invest. In order to turn your investment in a ULIP plan fruitful, follow these 6 simple steps:

    List of steps to follow to get the best ULIP Plan for yourself:

    1. Understand the working of ULIPs

    People often confuse ULIPs with mutual fund investment. This is simply not the case as ULIPs and mutual funds are two different products that offer their own set of perks. It is highly recommended to invest in a ULIP policy due to its flexible nature.

    Before investing in ULIPs, either speak to the insurance company offering the plan or take referrals from people who have invested before. You can also conduct your research so that you aren’t lost while the insurance company explains its working process. Always ask your doubts, if you don’t understand a particular term.

    2.Compare your plan with the rest

    Suppose, you have any product in mind, don’t put your whole and soul into investing in it. Rather, keep your options open as a backup, just in case. Once you have all the products ready offered by different insurance companies, compare and find out who is offering what.

    Before investing in a ULIP Policy, see the difference between the offerings that you liked and the one which is lacking behind. Comparison between the two will only teach you not to settle for less.

    3.Select the right plan

    The most crucial step to getting the best ULIP Plan in India is selecting the right plan. The right ULIP Plan will allow you not only to gain higher returns but will also keep your future investments in check. Most importantly, you’ll no longer go around asking, ‘why should I invest in ULIP?’

    The right ULIP plan is a perfect combination of a life cover, higher returns, multiple funding options, and so forth. A ULIP Plan with the appropriate features will simply add value for the money and make it a lifetime investment.

    4.Learn the charge structure

    Understanding the details of a charge structure might sound complicated. But trust me, it actually isn’t. All you have to do is speak to an expert who will knock down the process to simple terms and technicalities.

    Usually, the charges of the ULIPs depends on the type of company. Most ULIPs offers 4 charges which are Premium Allocation charge, Mortality Charge, Fund Management charge, and Policy Charge. Invest your funds depending on the type of charge you decide to go ahead with.

    5.Look for switching options

    Unlike mutual funds, ULIPs are flexible in nature. This simply makes it easy for you to switch from one fund to another as well as the liberty to select any type of fund you wish. Flexibility to do so based on your risk appetite is something that every investor looks forward to.

    For instance, if an investor wishes to stop investing in a particular fund and wishes to switch the current one, he can easily do so without thinking twice. Switching option will simply capitalize the market upturns or downturns.

    6.Know the guarantee amount

    As an investor, it is your duty to find out if your insurance company offers a minimum guarantee amount. However, when you invest in a ULIP Plan, you don’t have to worry about receiving the sum assured as it guaranteed. This totally depends on your plan and the insurance company.

    We are more than sure that this guide will surely help you get the best ULIP Plan in India. Hurry to get all your expenses covered and protected for a lifetime.