Multiply Your Wealth with Unit Linked Insurance Plan

ULIP plan comes with a lock-in period of five years. A lock-in period is the timeframe, i.e., five years, when the policy holder cannot withdraw or liquidate the value of the fund that has been accumulated. After the ULIP lock in period, partial or full withdrawals can be made depending upon the specific ULIP. 

Unit Linked Insurance Plan (ULIPs) also provide tax saving benefits³ as per the Income Tax Act, 1961. You get dual tax benefits³ with ULIP plan. For example, with Edelweiss Tokio Life - GCAP you can avail tax benefit³ on the premium you pay u/s 80C and even the maturity benefits are eligible for tax exemption³ u/s 10(10D).

Below are the tax benefits³ that you can avail with a ULIP plan:

• Entry Benefit: You get tax benefit³ on the payment of your premium u/s 80C and 80CCC.
• Earning Benefit: The money growth that you get is not taxable.
• Switching Benefit: You can make the switches between the equity and debt funds without paying any tax.
• Exit Benefit: You also get tax exemption³ on the maturity amount.

Like all life insurance plans, ULIP provides death benefit. The unit-linked insurance plans (ULIPs) provide both death and maturity benefits to the policyholder. As a part of death benefit, in-case of unforeseen situation, the insurance claim value will be the higher of available fund value or sum assured.

Again, that is your choice and depends on your risk-taking capacity. Always check the fund performance, see how the growth rate has been since the past few years and see all the available funds in the savings plan while you make the decision. Moreover, you do not have to worry about your decision because you can change funds unlimited number of times. There is no charge for switching funds.

A ULIP is a market-linked investment cum insurance plan whereas an endowment plan is a life insurance policy which, apart from covering the life of the insured, helps the policyholder save regularly over a specific period of time so that he/she is able to get a lump sum amount on the policy maturity in case he/she survives the policy term. Endowment policies does not provide transparency, as there is no investment portfolio. However, ULIP plan is extremely transparent as you can track your investment portfolio.

A ULIP or Unit Linked Insurance Plan serves the purpose of both investment and life insurance under a single plan. And the net premium paid by you is further invested in any of the chosen funds – equity, balanced, debt, etc. Upon ULIP maturity, the fund value of the insurance will be as per the value of the market. In any unforeseen situation such as death, the insurance claim value will be the higher of available fund value or sum assured.

Here is the quick guide to choose best ULIP plan to meet your financial goals:

1. Select best ULIP Fund Options as Per Your Goals
2. Opt. for Required Amount of Life Insurance Cover
3. Know the ULIP Charges
4. Check-out the Tax Benefits³
5. Check-out the Features of ULIPs
6. Stay Invested for a Long Term with ULIPs for the best returns
A best ULIP plan will be a perfect solution to secure your future financial goals.

A term plan gives your nominee the life cover amount in case of the policyholder’s demise. But if the policyholder outlives the policy term, he will not receive any benefits. In a ULIP, which is an investment plan, you get a certain amount of maturity benefits based on the funds you have invested in, after the investment period. But if you expire before your policy term, your nominee will get the fund value up to that point