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3 Best Tips to Invest in ULIP with Lower Cost

Updated On Jul 06, 2021

ULIPS are a great way to secure financial stability, and they come with a slew of extra benefits. These plans are a good way to get market-linked returns. When market conditions are favorable, this feature of ULIPs makes it an ideal option for getting higher returns.In this article, we've explored the three best tips to save money while investing in a ULIP plan, eventually maximizing profit.

3 Best Tips to Invest in ULIP with Lower Cost

The following are the best ways for saving money on ULIPs.

1. Buy Online

The most reliable and recommended way to invest in any plan is considered to be through online browsing. It allows you to compare the sum assured of various ULIPs, as well as the fees associated with premium allocation, Fund Management, surrender charges, and policy returns at the conclusion of the policy term. Since the expenses of appropriation are reduced on the internet, there are a few schemes that aren't even shared assets.
Moreover, the most profitable aspect  of buying ULIPs online is that you can save money by not having to pay a premium allocation fee or a policy management fee.

2. Invest For A Long Term

According to experts, it is always recommended to invest in equities with a long-term perspective and a suitable asset allocation, as equity is the only product that is expected to outperform inflation over time.
It should be noted that ULIP funds have a switching feature that allows you to transfer from a debt to an equity fund. This will reduce your risks while increasing your revenues. By taking advantage of the 5-year lock-in term, you will be able to invest a small amount over a longer period of time.

Due to the nature of the costs being front-loaded, the rewards are greater if you invest over a longer period of time. In addition, loyalty bonuses are usually provided after eight to ten years.

3. Invest Young

With the increasing age of the investor, the expectancy of obtaining efficient coverage from a ULIP plan will keep decreasing. If you're over 50, it is advisable to  stay away from unit-linked insurance policies because of the high death rates. Your coverage would be insufficient for the premium you would be paying. ULIP plans will work in your favour and yield the best results if you start out by investing at a young age.

Take Away

ULIP plans are popular among investors and work in tandem with the market to provide overall positive results. The preceding article explores strategies for getting the most out of a ULIP plan while minimising investment fees, offering you the best of both worlds.

Also read - How ULIP Lock-In Period Helps You Invest For Long-Term Goals? 

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.     

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