What is ULIP Plan and How Does it Work?

What Is ULIP?

How Does ULIP Work?

How to Invest in a ULIP?

What Are the Features of a ULIP?

FAQs About What Is ULIP and How Does ULIP Work?

How much tax benefit can I get on the ULIP?

up-arrow
You can get a tax deduction for up to ₹1.5 Lakh under Section 80C of the Income Tax of India. Furthermore, Section 10(10D) allows the death benefit to be completely free from tax obligations.

How can I switch my fund type in ULIP?

up-arrow
You need to check whether your insurance provider gives the online self-service facility to modify the fund type. If it does, you need to visit the portal of your insurance company to request to change your asset allocation type. Else, you will have to visit the physical office of your insurer for the same.

Which factors do I need to see before selecting a ULIP?

up-arrow

Here are some of the aspects you need to consider while choosing a ULIP:

  • Maximum sum assured
  • Charges for the ULIP (riders/policy administration/premium allocation fees)
  • Type of funds
  • Lock-in period
  • Premium amount

What is the maximum death benefit in ULIP?

up-arrow

Upon the death of the policyholder, his/her family members can get any of the following amount which is the highest at the time of claiming:

  • The sum assured amount
  • 105% of the total premium policyholders pay
  • Present value of the fund at present

Are ULIPs suitable for everyone?

up-arrow
ULIPs are ideal for those looking for long-term investment with life cover. However, they should be complemented with health insurance to ensure complete financial protection.

How does ULIP function as an investment tool for the future?

up-arrow
ULIP works by dividing your premium into two components: life insurance and investment. The investment portion is allocated to equity, debt, or balanced funds. Over time, the value of your investment grows depending on market performance. A ULIP calculator helps you understand how your premiums translate into future returns. It’s a valuable tool for planning long-term goals. The calculator also helps you adjust your investment strategy as needed.

Latest News

Currently there are no news to show.

Read More

Renew & Download Policy Document, Check Challan, Credit Score, PUC & more

Anytime, Anywhere. Only on Digit App!

google-play-icon

Rated App

app-store-icon

Rated App