How to Buy the Best ULIP in India?
Published On Nov 12, 2021
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A ULIP is one of the best ways to insure as well as invest. The ULIP or Unit Linked Insurance Plan is widely purchased for the security and wealth growth opportunity that it comes with. It is a market-linked investment product, thereby allowing investors to profit from the capital market.
If you too are interested in buying a ULIP, make sure you utilize some of the tips that can help you buy the best ULIP in India.
How to Buy the Best ULIP in India?
If you want to invest in the best ULIP in India, make sure you go through the following tips and implement them to make an ideal choice:
Selection Based On Your ObjectivesThe first thing would be to select ULIPs based on your specific objectives. It is a must for you to know that ULIPs allow investment in debt funds, equity funds, or a mix of the two. Equity funds can give you long-term growth, but debt funds will help you preserve wealth. First, analyze what are your precise goals? What do you want your ULIP to do? Then, depending on your prime objectives and risk tolerance, choose debt or stock. Keep in mind that one the basis of your needs, you can also shift your money between different funds in a ULIP.
Long Term InvestmentULIPs are renowned for helping one build wealth and achieve their financial goals. What’s best is that they help in adding value by providing life insurance coverage. If you wish to invest in ULIPs, and that too, for a long time, check with your insurance company to get and benefit from extras like Wealth Boosters and Loyalty Additions that, if available, will ultimately support you in growing your money even more.
Select Ideal CoverageULIPs are specifically designed to assist investors accomplish their long-term financial goals. So, whether you have further education for your child, marriage or your son or daughter, and other goals like such in mind, know that your ULIP will help you attain the same. In addition, ULIPs will also give financial protection to the dependents in your family in the event of your unfortunate death. As a result, it would be a must for you to choose the correct coverage amount keeping all your life goals and needs in mind.
Understand ULIP FeesIt is a must for you to understand that the ULIP you choose will come with certain charges. For instance, you may have to deal with charges for premium allocation, charges for policy administration, fees for fund management, charges of mortality and more as per the insurance company.
Focus on Tax BenefitsULIPs come with tax benefits in accordance with the Income Tax Act of 1961. Keep the tax benefits as well in mind before you choose the ideal ULIP to get your needs served.
Examine The Benefits Of ULIPsMake sure you are well aware of all the prime benefits of premiums like switching of funds, premium redirection, top-ups, partial withdrawals in mind before going ahead with the choice of ULIPs.
It is important for you to focus on the various benefits and features of ULIP before making a worthy decision. Keep in mind to read the policy wordings carefully and in case of any confusion, do not hesitate to contact the InsuranceDekho team.
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.