Plan your future with the best market-linked funds

Posted by sakhi sawant on September 16th, 2016

India is the country with massive population. We all want to secure our life from uncertain threats, maintain good health and beyond this plan for some sort of future savings, like retirement planning, child education, owning a house, etc. Each one of us want to care for our family the best possible way and ensure their financial security if we’re suddenly not around to fulfill our responsibilities towards them. Although, life insurance is there to protect your family’s future, however, with the rising inflation costs, change in lifestyle and stiff competition often the sum assured proves to be insufficient to fill up these gaps. Therefore, insurance companies have come up with investment-cum-insurance plans that offer dual benefits of investment in the capital markets along with insurance cover. Thus, it not only gives peace of mind, but also provides an opportunity to earn some high returns from various financial resources of the markets.

The article guides you through some points to choose the Best ULIP insurance policy:

•Choose a ULIP policy that offers a wide range of options in different investment tools like equity, debt, balanced funds, etc. The more options you have better will be the way to scatter your money evenly and the best ULIP insurance policy you can create to fulfill your needs.

•Buying an insurance policy would require lots of permutation and combinations so it’s always good to choose easier modes to buy one such as online deals. Online sites are great places to start buying policies as it helps you compare the policy in terms of benefits & features, discount & deals, payment & claim procedures, etc. It also provides you with a variety of options to choose the best as per your needs.

•While buying the best ULIP insurance policy look for policy term flexibility. A ULIP with a term policy of 10 to 15 years is better than a ULIP policy of just 5 years. If you have a reasonable time frame of investing regularly month-on-month basis, or year-on- year basis with consistent investment then you should look at ULIP plan purchase. Over the period time the markets will have its own ups and downs, but eventually you will be able to reap the benefits in the given time frame.

•Compared to older ULIPs, the new policies are quite cost-effective and stand out in terms of benefits. They provide better avenues for wealth creation along with adequate life cover.  The best ULIP insurance policy will come at lower expenses and higher returns over the time. The expenses can be compared easily enough since the information is widely available on company websites in a transparent manner. Opt for ULIPs that invest the entire premium, meaning the premium allocation charge is zero.

•The charges and premium payment flexibility also counts a lot. Firstly, understand your risk appetite and accordingly set a premium. Look for payment flexibility options like credit/debit card options, waiver for late payments, added duration for payment due, etc. In terms of charges there are administrative, fund allocation, fund management, fund switching charge associated with the policy. The best ULIP insurance policy should try to curb all these expenses and produce a fair amount of profits.

•ULIPs mainly offer a death benefit that is higher of the sum assured and fund value. Some insurance companies also offer an attractive third option of a percentage of the premium paid, for instance 105% of premiums. Thus, an individual gets three types of solutions on their earnings which he or she can choose the one appropriate as per the convenience.

ULIPs are good investment tools for market savvy people. Such plans help you think for long-term financial planning and enjoy the component of life cover as well. Simultaneously, you can reap the benefits of equity or debt investment. Once you figure your needs and understand the market movements, time for right fund switches you can create the best ULIP insurance policy that can secure and insure the future of you and your loved ones.

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sakhi sawant

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sakhi sawant
Joined: September 2nd, 2016
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