What is ULIP (Unified Connected Insurance Plan)?
ULIP is a life insurance product that provides policyholders with risk coverage and investment opportunities for a number of eligible investments such as stocks, bonds or mutual funds. As an integrated plan, the investment section and the security section can be managed according to specific requirements and solutions.
Introduction of ULIP :
In a unit-linked insurance plan (ULIP), investments made are subject to capital market risk. Investment risk in this investment portfolio is borne by the policyholder. In this way, you must make an investment decision after considering your risk appetite and needs. Another factor to consider is your future resource requirements. HDFC Standard Life offers a variety of insurance products related to funds that meet your goals – whether for your retirement, your health, your child’s education and marriage, or investment objectives.
For which investor class is the best?
Those who want to oversee their investment. With a unit-linked insurance package, policyholders can carefully monitor their portfolio. They also provide flexibility to switch your funds between funds with different risk return profiles.
Individuals with medium and long term investment horizons
ULIP (Unit Linked Plans) is ideal for people who are willing to keep investing for a long time.
People with different risk profiles
For the seven funds offered, the equity component ranges from zero to a maximum of 100 percent. This gives all types of investors the choice of funds – from risk-free investors to high-risk investors.
Investors in all phases of life
This plan category offers a variety of packages that you can choose according to your stage of life and current financial needs and commitments.
How is the structure?
In a unit-linked plan (ULIP), the premium that you pay after deducting distribution and costs, including fund management, administration of policies, and insurance protection, is invested in the funds you choose by cancelling certain shares.
The value of each Share of Fund is determined by dividing the total investment value of the Fund by the total number of shares.
The advantage of a standard plan?
With a stock plan, you can achieve market returns by investing in market-based funds and investing in a variety of marketable instruments, including debt and equity in different proportions.
Life, investment and savings protection
Fund-based packages offer double the benefits of life insurance and market return savings. This gives you the opportunity to invest your money to get a higher return while respecting your protection needs. Investing in a stock plan helps attract savings and investing habits, which are important in the long run to building wealth.
Unit Plan gives you a variety of flexible options such as
The ability to switch between mutual funds to meet changing needs.
Conditions of partial payment from your funds are subject to fees and conditions.
One-time premium supplement to give policyholders the option to invest additional cash (excluding regular bonuses) on desired terms.
Maintenance of plans and One time bonus
The policyholder is obliged to pay the full amount of the premium at the beginning of the contract period.
Payment of regular premiums (annual, twice a month or monthly)
Policyholders must pay regularly a fixed premium, d. H. Annually, semi-annually or monthly, depending on the premium payment period chosen.
Number of years of payment for premiums
This depends on the duration of the policy chosen. In most cases, the policy period and the number of years to pay premiums (for regular premiums) are the same. However, for some policies, the insured can specify the number of years of insurance paid.
Switching between funds
You might want to switch between stocks and debt in times of market volatility or interest rate fluctuations. In some cases, changes in your financial position, liabilities or risk profile may require you to change your investment.
You can also, after a certain period of time, make a partial withdrawal from your balance with a partial withdrawal fee. The payment amount must be at least the same as the minimum payment terms and the Fund must not fall below the minimum value of the Fund after payment.
You can withdraw your policy in full on the due date. But in this case, transfer fees will apply.
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