Choose the Best ULIP Plan in India in 5 Easy Steps

A unit linked insurance plan (ULIP) is a product offered by the insurance company that, unlike a normal insurance policy gives the customer both the chance of investment and insurance under one integrated plan.

A portion of the premium goes towards your life cover and the rest is invested in funds of the policyholder’s choice which gives you an opportunity to financially protect your family in the event of something unfortunate and to get favorable returns on your investment too.

Features of ULIP plans in India:

1. Wide range of options Go for the best ULIP plan which offers a wide range of options across asset allocation. A ULIP plan with maximum fund options with varying allocation in equities and better would be far better than investing all your money in just one or two funds. This will further lower you risk and will help you to find a suitable plan or option for your further investment. 

2. Always choose the plan online As there are so many options available in the market, you can go online ulip plans and compare them with each other that will help you to find a plan according you to financial needs. So it will be a better idea to choose the best ULIP plan online. 

3. Switching facility Always go for the ULIP plan that provides you with the facility of switching between funds. This means you can, anytime, choose to stop investing in a fund and switch to another fund if you think that will be a more suitable option for you. 

4. Money factor Always choose a ULIP plan after looking over your financial position so that the premium doesn’t create a financial burden on you. Keep in mind that if you are unable to pay the premium your policy can lapse, which is never good. 

5. Premium redirection facility Go for a ULIP plan that provides you with a facility of redirecting your premium. This means that you can choose what percentage of your premium is invested in which fund and can anytime, reduce or increase that percentage as you deem fit.

Edelweiss Tokio Life presents unit linked insurance policy that provides you with features that make up for an ideal ulip plans in India as it contains facilities like:

• Facility to switch your accumulated investment from one fund to another at the opportune time.
• Option of redirecting your premium in funds of your choice
• Access to you wealth anytime, through facilities of loans and partial withdrawal
• You can choose to pay premium for a limited time, yet the wealth accumulation and insurance protection for a longer period of time
• Tax benefits under Section 80C and Section 10 (10D) of Income Tax Act, 1961

Aastha Mestry - Portfolio Manager          

An Author and a Full-Time Portfolio Manager, Aastha has 6 years of experience working in the Insurance Industry with businesses globally. With a profound interest in traveling, Aastha also loves to blog in her free time.