May 16, 2022

SHAW LANE AQUAFORCE

The Team Blog

ULIP – Unit Linked Insurance Plans

In the recent events of epidemic and Pandemic, people have become more aware of health insurance and other policies too. Nowadays it has become highly advisable to at least have 2-5 insurance policies. These policies are nothing but a medium to save our assets in a way that doubles the per capita invested by any investor in no time. One such insurance plan is called the ULIP Insurance plan which allows you to maintain corpus for rainy days. There are many best ULIP plans where you can invest.

Now, you might be thinking, what is ULIP Plan meaning, So, here in this article we will tell you about what ULIP Plan means, ULIP Plan Calculator, Benefits, and the best ULIP Plans. 

What is ULIP Plan?

Before we discuss anything about what a ULIP plan means, let’s understand what the ULIP Plan Full form is. 

ULIP stands for Unit Linked Insurance Plan or ULIP Insurance.

ULIPs are long-term investments. These are investment policies for investors which follow systematic transfers from debt-to-equity funds.

In simple terms; Life cover + investment + tax benefits = ULIP.

ULIP plan gives a major best ULIP plan benefit of switching between the funds, so that means there is flexibility where one can switch to another type of funds if their rate of interest is higher.  

ULIP plan features the credibility of boosting up the returns or the actual capital invested. It, therefore, helps in gaining a life cover and a long term growth of assets invested towards different bonds and equities. Best ULIP plans have another great ULIP plan benefit where it becomes easier for the investor to double their savings in no time. 

ULIP plan is like a financial instrument that gives tax benefits while creating corpus by periodically investing in money-making market schemes. It ensures to maximize the capital invested by investing a part of our savings and keeping another part for ULIP insurance. This helps in capital appreciation and tax benefits. Hence, finding long-term happiness by achieving financial goals. Smart goals and lasting financial freedom is the key ingredient in the Best ULIP plans.

With the economy growing higher worldwide, everyday expenses have also grown tremendously in just a few years. That is why there is a need for investment and planning for a better life and lifestyle. 

To make our future more affordable, it has become crucial for one to plan benefits for the corpus they accumulate for a rainy day or otherwise. Hence comes the best ULIP plans; also known as (ULIP Insurance Plan).

| Read More “Best Life Insurance Plans in India 2022

How Does ULIP Work?

By making premium payments annually or monthly, unit allocation will be done to preserve the capital investment. These charges are clearly stated beforehand and are because of numerous reasons like- unit allocation, management of the funds, allocation of funds manager to look after the market rise and fall and then carefully investing, etc. The policyholder will be asked to make choices for their portfolio against recommended policies to buy/invest in. Of course, it will be subjected to the risks of different policies associated with its capital. Best ULIP plans will help to grow assets with the security of life cover.

ULIP Insurance Plan offers:

  • Zero % Commission, No Hidden Charges other than premium payment
  • 100% Calls Recorded
  • One-Click Easy Refund

Top 15 Best ULIP Plans in India 2022

There are many ULIP plans but some of them are considered the best ULIP Plans due to the benefits they offer to the investors. Here, You can find the 15 Best ULIP Plans, their entry, and other information. You can find the best ULIP plan for yourself. 

In order to understand the best ULIP plans; let’s see this table: 

Name of Plans Entry Age Minimum Premium Premium Allocation Charge
Aegon Life maximize Secure Plan 7 to 55 years Rs. 24,000 to Rs. 36,000 Nil
Aviva Life Bond Advantage Plan 2 years-65 years Rs.50,000 N/A
Bajaj Allianz Future Gain 1 to 60 years Rs. 25,000 0% to 1.5%
Bajaj Goal Assure 0 years (30 days) to 60 years Rs. 3,000 to Rs. 36,000 Nil
Birla Sun Life Wealth Assure ULIP Plan 30 days-65 years Rs.1,00,000 per annum 5% of the basic premium during the first year
Canara HSBC Grow Smart Plan 7 years-65 years Rs.25,000 per annum 1-year policy term- 8.40%2-3 years policy term-6.40%4-10 years policy term-5.40% 11th years onward- Ni
Edelweiss Tokio Life Wealth Enhancement (Ace) 5 years-65 years Rs.75,000 3%, 2% & 1%
Exide Life Wealth Builder 18 year-65 years Rs.50,000 Rs 50,000-99,999: 1%
Future Generali Wealth Protect Plan 7-60 years Rs.25,000 1-year policy term- 5%2-5 years policy term-3%6th year onwards-2% 
HDFC Click 2 Wealth 0 years (30 days) to 60 years “Rs. 1000 to Rs. 12,000 (regular pay) Rs. 24,000 (single pay)” Nil
HDFC Life ProGrowth Plus 14 to 65 years Rs. 2500 to Rs. 10000 2.5% of Annual Premium
ICICI Pru Signature 0 years (30 days) to 70 years Rs. 2 Lakh p.a. Single Pay: 3% Regular Pay: 0% to 5%
ICICI Pru Wealth Builder II 0 to 69 years Rs. 24,000 to Rs. 48,000 3% to 4%
IDBI Wealthsurance Growth Plan 30 days-70 years N/A 0,05%
Kotak Single Invest Plus 18 years- 55 years Rs.3,00,000 5%,4%

ULIP Plans Features

For many of us who believe in the long-term planning of our investments, the best ULIP plans work magnificently. Let’s discuss them in brief:

  1. Best ULIP plans have many great features such as ULIP insurance of people’s assets along with the great opportunity of investments. The ULIP plan features include ULIP insurance in terms of bonds and equities. 
  2. Best ULIP plans benefits help in creating lifelong wealth and financial security. The availability of the best ULIP plans works by paying a premium amount in order to fulfill goals like wealth multiplication over a particular tenure and keeping it secure with ULIP insurance provided by different companies.
  3. The best ULIP plans work efficiently as we work out to keep our body and soul energized and that is why it works longer. That is why the best ULIP plans features provide the benefits to make the future better.

NOTE: In the event of the unfortunate demise of the person holding these plans, the funds will be transferred to the nominated beneficiary. There will be some ULIP insurance policy maturity benefits as well which we will discuss now in the next topic. It helps in Transparency, Flexibility, Control, Safe Investment, Goal-Based Planning, Financial Security Post Retirement, Protecting the Child’s Future, Higher Returns, Hassle-free investments without actually Managing Stocks, Multiple Fund Options to Choose From, Liquidity, and Low Surrender Charges.

ULIP Tax Benefits in India

The potential to gain higher returns with some tax benefits; ULIP plans offer a variety of following benefits such as: 

 The capital invested = rate of interest for the maturity of policy will be given at the time of the maturity. Different companies which provide these UPIL plans will add extra benefits according to the terms and conditions applicable at the time of signing the documents and at the time of maturity of the policies.

  • Market – linked Returns

This is an excellent opportunity to get high fixed returns with favorable ULIP tax benefits.

These Tax-free withdrawals in times of any emergency/rainy day will come in handy and provide policyholders the benefit of withdrawal of a portion of the investment. These are some of the reliefs provided in ULIP tax benefits.

  • Long-term Investment Benefits

 It is called that you reap what you sow. Similarly, in this case, if you sow long-term investments, you reap maximum returns on the ULIP Tax Benefits. However, if you sow short-term investments; there is a possibility that you might not get maximum returns depending on the market situation. If the market is down, there will be less short-term interest and vice-versa.

  • Investment and ULIP Insurance Benefits

  ULIP Insurance will help cover lifelong happiness with life cover, returns with boosters, and long-term growth.

  • Life Protection, Savings, and Investment

Investing in a wide range of market funds can earn a high rate of return for long-term plans. Moreover, the company adds ULIP tax benefits on being loyal for longer tenure and wealth boosters that add up the value of your capital investment.

  • Tax Deductions on ULIP tax Benefits

Upon maturity of the policy or unfortunate demise of the policyholder, tax exempted under Section 80C and 10(10D) of the Income Tax Act; the policyholder or the nominated beneficiary will get all the ULIP tax benefits to be availed by them.

| Read More “Top 10 Best Health Insurance Plans In India 2022

ULIP Plan Calculator in India

 Now the investors can look at the options available to them by just using an important tool while investing. It’s called: “the ULIP Plan Calculator”. It not only shows you what the premium value will be but also guides investors to compare different policies at the time of investing while creating maximum return on their investment.

One can simply log in to the online free ULIP plan calculator. Then they will be requested to enter the amount they want to invest in the ULIP Plan Calculator. Next, they will be asked to select the frequency of premium payment and tenure on the ULIP Plan Calculator tool. The next step will ask to select the lock-in period of investment. Investors then would be required to select funds in which they want to put their money. The investors can choose to invest in equity instruments, debt funds, or a combination of both using the ULIP Plan Calculator. Later all the personal details like name, age, gender, etc. will be asked to fill in the form. This form on ULIP Plan Calculator is all that helps investors to choose their preferred ULIPs. Overall, ULIP Plan Calculator is a hassle-free online tool available for all. 

ULIP Plans – FAQs 

Q1. What is the ULIP Plan Meaning and the Full Form of ULIP?

Ans. The answer for What is ULIP Plan means is mentioned in the article above in detail. In short, it is a long-term investment providing life cover and tax benefits to the investors. ULIP is the acronym for Unit Linked Insurance Plan or ULIP Insurance plan.

Q2. Is ULIP Taxable Upon Maturity?

Ans. As per section 10 D of the Income Tax Act, 1961, UPIL is tax-exempted.  depending on terms and conditions, the maturity amount is either taxable or statutory exemption.

Q3. What happens if I Select the Wrong ULIP Insurance Plan?

Ans. With all the policies, there is some look period. This means if you are not happy with the policy you choose at the time of investing, then you can ask for a return from the company that provided you with the ULIP. Or you can switch to another policy with the same company.

Q4. Are the Best ULIP Plans a Risky Investment for the Investors?

Ans. Although these policies look fascinating, there is always a risk subjected to the market. While using the ULIP Plan Calculator one can be assured of good investments.

Q5. Can Someone tell me what the Different Types of ULIPs are?

Ans. There are 2 different kinds of ULIPs. However, Type II ULIP is preferred over Type I ULIP.

Q6. How Can I Make Money with the Best ULIPs Plan?

Ans. You can master this art by choosing and switching between funds carefully while making investments. It is important to consider the market and stocks beforehand. 

Q7. What happens if I can’t continue the ULIP Insurance Plan?

Ans. The policy will be terminated with immediate effect, but there will be a charge if the policy is less than 5 years old. If at all the policy is more than 5 years old, there will be no surrender charges.

Q8. Is There Any Difference Between a ULIP & SIP?

Ans.  Both SIPs and ULIPs allow you to claim deductions under Section 80C. However, ULIPs fetch you a deduction and SIPs offer EEE ULIP tax benefits.

Q9. Are ULIPs costly due to multiple inherent Charges?

Ans.  Till now, fixed rates have been brought down considerably where mortality and morbidity charges, fund management charges have been capped by IRDAI in 2010.

Q10. How Can Investors Maximize ULIP Plans Return?

Ans.  Ensure that the right amount of equity and debt investments are done. Select the right funds based on your current investments. Invest in higher equities to satisfy your future needs.

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