Unit Linked Investment Plan is a market-linked product that aggregates the overall best of investment and insurance. ULIP provides an opportunity for market investment and life protection cover at the same time. ULIP allows the customer to invest in stocks, bond and mutual funds and hence their money not only provides them coverage but it also grows. One can invest in the debt, equity and hybrid funds which can be chosen by the customer as per the risk appetite capacity. The unit linked investment plan is a good choice to invest in and the customer may change their choice along with the condition of the capital market. While deciding a ULIPs plan one needs to be well aware of the market and risk. Unit Linked Investment Plans can be classified differently according to their purpose and motive that they serve. The classification is such as –
1. Unit Linked Investment Plan for Retirement
2. Unit Linked Investment Plan for children education
3. Unit Linked Investment Plan for Health Benefits
4. Unit Linked Investment Plan for Wealth Collection
ULIP product provides a benefit of transparent structure, features, and charges to the customer. One can easily switch between funds with a different premium paying frequencies. Customer invests a portion of the deduction of all the premium and charges for life coverage in the ULIP funds. Following are the top 5 Unit Linked Investment Plan funds that you can invest in the year 2018.
HDFC Standard Life – Balanced Fund Life Super II
HDFC standard life –standard fund life super II is a ULIP investment and protection plan. This depends upon the risk-taking ability and the financial goals of an individual that which of the various available fund options suits him or her. There are various ULIPs offered by HDFC Standard Life, and some of them are –
- HDFC SL Crest
- HDFC Life Click2Invest Plan
- HDFC Life Pro-Growth Plus
- HDFC Life Capital Shield
The HDFC SL plan offers benefit plan with flexibility to choose from the various options available. Few options are as follows –
- Extra life option of HDFC SL offers death benefits along with the accidental death benefit for the customer.
- Unit linked plans give you an opportunity to earn market-linked returns as part of the premiums are invested in market linked funds which invest in different market instruments including debt instruments and equity in varying proportions.
- HDFC SL offers extra life, disability and health plan that offer the death benefit, accidental death benefit and critical illness benefit to the policyholder.
- Surrender charges are levied for premature encashment of units. They are charged as a percentage of the fund value and depend on the policy year in which the policy has been surrendered.
- Life and disability option that offers a death benefit, permanent disability benefit, and the accidental total benefit is also offered by HDFC SL.
Future Generali Life – Future Dynamic Growth Fund
The future Dynamic Growth Fund by Future Generali is the best product of ULIP that one can invest for maximum profit. But the Future Dynamic Funds are only in equities so the market risk of the plan is very high. The return ROI of this plan is also average to high and generally, the plan offers a coverage up to 30 times of the annual premium. If you want to build your wealth, the future dynamic growth fund is really helpful for an individual for a long term. Following is the list of the UPIL products that are offered by the Future Generali –
- Future Generali Dhan Vridhi
- Future Generali Bima Gain
- Future Generali Easy Invest online Plan
- Future Generali Wealth protect plus
- Future Generali Bima Advantage Plus
- Future Generali Pramukh Nivesh ULIP
Generally, the fund value for the plan is paid to the policyholder as soon as the plan matures and the plan allows partial withdrawals after 5 years. The company settles the claims within 7 days of the email of claim settlement if the documents and claim form provided to the company by the customer is correct.
Bajaj Allianz Life – Asset Allocation Pension Fund
The ULIPs funds offered by the Bajaj Allianz provide an opportunity to create wealth for future to the policyholder. The plans are available with the regular and limited pay premium payment options for the policyholder. This plan offers the customer some unique and attractive features like flexible allocation of funds, frequencies of payment, switch and redirect funds and etc. The policyholder can choose ULIP plans according to the risk appetite and requirements an individual. Following are the ULIPs offered by the Bajaj Allianz Life –
- Future Gain
- Fortune Gain
- Principal Gain
- Retire Rich
In case you are planning for your retirement, Bajaj Allianz assures one to enjoy a guaranteed vesting and death benefits at a various number of premium options. The policyholder can get a very high return rate under the fund. So, if the policyholder can digest high-risk appetite, then it is very beneficial to invest in the Bajaj Allianz Life funds. The Asset Allocation Pension fund has resulted in an absolute return of 18% in the year 2017. On maturity of the fund, policyholder gets the Regular Premium Fund value along with the top – up fund value. It is up to that insured whether he or she chooses to avail the maturity value in instalments over a period of 5 years through the settlement option or not.
Kotak Ace – Balanced Fund
The Kotak Mahindra Life ULIPs ensure a benefit of both protection and market linked return. The policyholder can invest an amount of premium via numerous options. The customer can invest in a various ULIP products that are offered by the Kotak Mahindra Life as per the requirement and choice. Following is the list of the ULIP products that are offered by the Kotak Mahindra Life, one can choose from these as per suitability and requirements-
- Kotak Ace Investment
- Kotak Single Invest Plus
- Kotak Single Invest Advantage
- Kotak Wealth Insurance
- Kotak Platinum
- Kotak Invest Maxima
Before investing in a ULIP product from the Kotak Mahindra one need to make sure that a significant amount or share of your asset is allocated to the Kotak Ace – Balanced fund. Return of the Kotak Ace – Balance Fund for the year 2017 was 22%. The policyholder can take the lump sum benefit or use the settlement option to take it in instalments when the plan matures. Available fund value is paid along with the loyalty additions to the policyholder. The premium paid for the fund are tax-free under the Section 80C while the claims received by the policyholder are tax-free under the Section 10.
Canara HSBC Life Unit Linked Whole Life Plan – Balanced Fund
The Canara HSBC Life Unit Linked Whole Life Plan – Balanced Fund presented by the Canara HSBC Oriental Bank of Commerce Life. Like other ULIPs funds, it also gives an opportunity to the customer to enjoy market linked returns and the life insurance protection cover hand in hand. Various ULIP product options are offered by the Canara HSBC Life Insurance and they are as follows –
- Platinum plus Plan
- Smart Lifelong Plan
- Dream Smart Plan
- Grow Smart Plan
If the customer invests in Canara HSBC Life unit-linked whole life plan – balanced fund, then it regulates the expected high amount of the investment that is made by the customer. Registered users in the plan can easily check the status of the policy by logging into the e-portal of the company. The return rate of the Canara HSBC Life Unit Linked Whole life Plan – Balanced fund in the year 2017 is 24%. The process of claim settlement for the Canara HSBC ULIP plans is very simple. Nominees of the plan can visit the nearest branch of the Canara HSBC with the policy document and the Death certificate of the policyholder in case of the death of policyholder to claim.
ULIP is a very complex financial product and it has various number of variants and each one comes with its unique set of features and benefits for the customers. You should focus on your investment goals while you are looking at the luring features of a ULIP plan. All you need is to identify a plan that suits best to your investment goals, risk appetite, and financial digestion health. It can turn out to be a mind-boggling process for the customer, so an online insurance web aggregator comes to a rescue in such situation. One can not only help the customer to compare the quotes but it also helps to choose the plan with the best benefit, premium payment, scheme, performance, cost structure and additional facilities. So if you are ready to invest a huge amount of money and you are sure to take some financial risk, then you can choose any of the above-mentioned plans and let your money grow.
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