Unit Linked Insurance-ULIP

Gives Investment Returns + Life Cover + Tax Benefits

ULIP are financial products that offer a combination of an investment and life insurance benefits. It allows you to invest in debt and equity funds for wealth growth while securing life insurance coverage. It offers a dynamic fund balance with the ability to switch between equity and debt components based on market conditions, providing a balanced approach to risk and investment.

ULIP Plans can be a great option for people who are looking for a life insurance product that also offers the potential for investment growth.

  • One Plan Dual Benefit
  • Enhanced Protection for Your Family
  • Earn Market-Linked Returns
  • Loyalty Additions and Wealth Boosters

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What is Unit Linked Insurance Plan

Unit linked insurance plans combine market-linked investments with life insurance coverage. ULIPs are life insurance policies with a unique structure. The premiums which are paid by the insured are invested in market-linked securities so that they can earn attractive returns that are in sync with the market performance. In the case of death, higher of the sum assured or the fund value is paid. When the policy, however, matures, you get the fund value as the maturity benefit.

ULIPs have different types of investment funds. Each fund has a diversified portfolio of market-linked securities and the portfolio is managed by expert fund managers. Based on your risk appetite and investment needs, you can choose from one or more funds to invest your premium.

ULIPs offer flexible policy features like partial withdrawals, top-up premium payments, switching, premium redirection, etc. As such, you can manage your ULIP investment as per your needs with the added protection of life insurance coverage. There are some charges associated with ULIPs. These charges are deducted from the premium before getting invested in the chosen funds. Thereafter, as per the performance of the market, the fund performs. The invested premium and the returns earned on it are reflected in the fund value which is as per market conditions.

 
Benefit How it Works
Death Benefit If you don't survive the policy term, your nominee will be entitled to a death benefit, which can either be -
Sum Assured + Fund Value
The higher of either Sum Assured or Fund Value
Maturity Benefit If you survive the policy term, you will be eligible to receive a maturity benefit. It is equal to the fund value of your investment on the date of maturity.

Need and Importance of Unit Linked Insurance Plan

There are some things that an insured should keep in mind while choosing the best ULIP plan as it is essential to make the right choices .ULIP plans provide the advantages of investment and the comfort of life protection. Hence it's very important to invest in such a plan. Below are few other reasons one must consider Choose this plan If You wish to receive regular payouts at specific intervals to cover your financial goals or expenses, such as instalments for a new house, your child's education fees, your spouse's higher education fee, or post-retirement expenses, etc.

  • Dual Benefit of Investment with Life Insurance

    ULIPs ensure life insurance coverage and market-based investments tailored to your risk profile, making it a cost-effective way to manage risk and grow wealth and makes a way to live a fulfilling lifestyle-It provides Choose this plan If You wish to receive regular payouts at specific intervals to cover your financial goals.

  • Financial Security after Retirement

    If you are planning to build a corpus for your retirement, ULIP can be a wise decision because of high returns that you get.

  • Create Corpus for Family’s Needs

    The opportunity to earn market-type returns through ULIPs helps to create a huge corpus or fund for your future.

  • Long-Term Wealth Creation

    If you want to meet your long-term financial goals, then switch to ULIP. ULIPs come with a lock-in period of 5 years that keeps you invested for a longer tenure. The accumulated money helps you meet your long-term financial goals such as buying a house or car, children’s education, marriage or other major financial objectives.

  • Financial Goal

    ULIPs promote disciplined investing, aligning with financial objectives by getting return as high as 17%.

  • Lack of Stress

    Fund managers of the life insurance company handle ULIP investments, relieving policyholders.

Key Benefits of Unit Linked Insurance Plan

Unit Linked Insurance Plan (ULIP) helps you to save systematically and build wealth while also securing the future of your loved ones with a life cover. Investment plans offer numerous benefits as mentioned below;

  • Maturity Benefit

    On maturity of the ULIP policy, you become eligible to avail of an amount equal to the accumulated fund value as a maturity benefit.

  • Life Cover

    In case of your unfortunate demise during the policy term, your nominee/s will receive a lump sum amount. This can either be the higher of the sum assured or the fund value, or can be the sum assured plus the fund value.

  • Liquidity Benefit

    ULIP plan gives the benefit of partial withdrawal of money after 5yrs’ to meet unpredictable events and emergencies.

  • Loyalty Additions

    The best ULIPs also help you boost your accumulated wealth.

  • Low Charges

    Annual charges for ULIPs are capped by IRDAI for the first ten years, making them comparable to mutual fund fees.

  • Riders Benefits

    Enhance your policy by adding riders for specific events, including Accidental Death Benefit, Waiver of Premium Benefit, Accidental Permanent Total/Partial Disability Benefit, Family Income Benefit, and Critical Illness Benefit.

  • Tax Benefits

    ULIPs offer tax advantages with tax-free maturity as a life insurance product, subject to certain conditions based on the type of ULIP.

  • Fund Switching Option

    It gives the benefit of free fund switching to manage the market risk.

Our Preferred Plan

Finding the best motor insurance for two-wheeler insurance can be a very stressful for any individual as there are many plans available in the market from various motor insurance companies. To make it easier for you, we BimaSure have compiled the list of best two-wheeler insurance plans along with its key features in the table below:

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Two-Wheeler Insurance

Coverage Benefits

    • Advantage with Acko
    • 2.8 crore+ customer insured
    • 94.54% Claim Settlement Ratio*
    • 24*7 customer support
    • Digitally enabled processes
      • Premium starting at just ₹457*
      • Coverage for Own Damage and Third party Available
      • Personal Accident (PA) Cover Available up to Rs.15 lakhs
      • No Claim Bonus up to 50%
      • Instant claim settlements (within 2 hours) for minor damages
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Two-Wheeler Insurance

Coverage Benefits

    • Advantage with Acko
    • 2.8 crore+ customer insured
    • 94.54% Claim Settlement Ratio*
    • 24*7 customer support
    • Digitally enabled processes
      • Premium starting at just ₹457*
      • Coverage for Own Damage and Third party Available
      • Personal Accident (PA) Cover Available up to Rs.15 lakhs
      • No Claim Bonus up to 50%
      • Instant claim settlements (within 2 hours) for minor damages
Icon

Two-Wheeler Insurance

Coverage Benefits

    • Advantage with Acko
    • 2.8 crore+ customer insured
    • 94.54% Claim Settlement Ratio*
    • 24*7 customer support
    • Digitally enabled processes
      • Premium starting at just ₹457*
      • Coverage for Own Damage and Third party Available
      • Personal Accident (PA) Cover Available up to Rs.15 lakhs
      • No Claim Bonus up to 50%
      • Instant claim settlements (within 2 hours) for minor damages
Icon

Two-Wheeler Insurance

Coverage Benefits

    • Advantage with Acko
    • 2.8 crore+ customer insured
    • 94.54% Claim Settlement Ratio*
    • 24*7 customer support
    • Digitally enabled processes
      • Premium starting at just ₹457*
      • Coverage for Own Damage and Third party Available
      • Personal Accident (PA) Cover Available up to Rs.15 lakhs
      • No Claim Bonus up to 50%
      • Instant claim settlements (within 2 hours) for minor damages

Inclusion and Exclusions in Unit Linked Insurance Plan

The inclusion under ULIP insurance plans may differ from one policy to another. The exclusions under all life insurance plans may differ from one policy to another. However, there are certain exclusions that almost all policies agree with. Below are some important inclusion and exclusions:

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Death Benefits

In case of an untimely death of the life assured during the policy term, the nominee will receive a death benefit.

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Maturity Benefit

If the insured person survives the entire policy tenure, ULIP pays the maturity benefit, which is the available.

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Rider Benefit

Most of the life insurance companies offer multiple riders like Accidental Death Benefit, Accidental Total.

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Act of Suicide

Any accident or Death due to suicide or any self-inflicted injury will not be covered

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Intoxication

The insurer is not obligated to compensate the beneficiaries if the death of the life insured.

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War or terrorism

Life insurance policies do not cover risks which are beyond their control.

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Criminal activities

Life insurance policies do not cover risks associated with illegal activities.

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Participation in High-risk activities

Death caused while participating in adventure sports or any dangerous activities.

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Non-disclosure of Material Fact

If you hide an important fact from the insurance company at the time of buying the policy.

Different Time Periods You Should Know About in Insurance

1. Premium Payment Term (PPT): It is term for payment of premiums and it depends on the plan chosen.

2. Free Look Period: The free look period in life insurance is usually 15 to 30 days from the date of delivery of policy document, depending on the channel through which you have purchased the policy.

3. Grace Period: The insurance grace period is 15-30 days for policies basis the premium payment options like monthly, quarterly , yearly.

4. Revival Period: A revival period refers to the time band allowed by the insurance company to recover a lapsed policy starting from the due date of the first unpaid premium. Typically, this period ranges between 2-5 years and varies across insurers.

5. Lock In Period: Unit linked insurance plans have a lock-in period of 5 years.

FAQ's

As the need for insurance increases, doubts and queries also increase. Navigating insurance complexities can be overwhelming.To help you with this, We have tried to address common doubts for a seamless journey with Bimafinserv;

What is a ULIP?

A Unit Linked Insurance Plan (ULIP) is a unique financial product that combines life insurance coverage with investment options. Policyholders can invest in a mix of equity and debt funds, providing both protection and wealth creation.

How does a ULIP work?

ULIPs work by allocating a portion of the premium towards life insurance coverage, and the remaining amount is invested in various funds such as equity, debt, or a combination of both. The policyholder has the flexibility to switch between funds based on market conditions.

What are the key benefits of ULIPs?

ULIPs offer a dual benefit of life insurance coverage and investment growth. They provide flexibility, tax advantages, transparency, and goal-based savings. ULIPs can be tailored to meet specific financial objectives.

Can I customize my ULIP investment strategy?

Yes, ULIPs offer flexibility in choosing the investment strategy. Policyholders can switch between funds, adjusting the allocation based on their risk appetite and financial goals.

What charges are associated with ULIPs?

ULIPs may have various charges, including premium allocation charges, mortality charges, fund management charges, switching charges, and policy administration charges. It’s essential to understand these charges before investing.

How does tax benefit work with ULIPs?

ULIPs offer tax benefits under Section 80C for premiums paid and Section 10(10D) for tax-free maturity proceeds. However, tax implications may vary based on the type of ULIP and prevailing tax regulations.

Can I surrender my ULIP before the lock-in period?

While it is possible to surrender a ULIP before the lock-in period ends, it is generally not recommended due to potential surrender charges. After the lock-in period, policyholders can make partial withdrawals without charges.

What is the lock-in period for ULIPs?

The lock-in period for ULIPs is typically five years. During this period, the policyholder cannot make withdrawals or surrender the policy without incurring charges.

How can I track the performance of my ULIP?

ULIP performance can be tracked through the Net Asset Value (NAV), which indicates the fund’s value. Insurance companies often provide regular updates on NAV, and policyholders can access this information through online portals.

Can I enhance my ULIP coverage with riders?

Yes, ULIPs offer additional coverage through riders. Common riders include Accidental Death Benefit, Waiver of Premium, Critical Illness Benefit, and more. Adding riders can enhance the policy’s coverage based on individual needs.