Life Insurance Products like ULIPs or Unit Linked Insurance Plan are reliable wealth creation solution over the long term. ULIP plans are market linked investment and insurance plans that offer its customers the triple benefit of protection, savings, and high ROI.
ULIP insurance plans are linked to the Capital Market. When an investor invests in ULIPs a portion of the premium is invested in life insurance while the rest is invested in equity, debt or a mix of the two. ULIPs saving element is managed by the professional fund managers. The investors also have the flexibility to switch his or her portfolio between the equity and debt later on.
ULIPs carry a lock-in period of 5 years. The insurance cover would cease immediately in case an investor surrenders the ULIP plan in the first three years. However, the surrender value can be paid only after three years.
ULIP is a complex Insurance cum investment Product. As a general rule, you should be insured up to ten times of your annual income. It would be difficult for a layman to identify what should be the appropriate sum assured for his ULIP Plan. Investment in ULIP Plan should be based on the investor's risk appetite, financial goals, and time horizon.
The best way to invest in ULIP plan would be contacting a professional financial advisor
It is tough for a common man to detect the elite insurance company or ULIP plan that suits him and his financial goals. This is why the investor should only invest after consulting professional financial experts like Swaraj Wealth. Just keep your KYC documents and Cheque ready and leave the rest to Swaraj Wealth.
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