ULIPs are Unit Linked Insurance Plans. Also addressed as wealth insurance plans. It is a package of financial solutions that ensure returns on your investment. They are innovative forms of life insurance that provide safety of your insurance cover with wealth enhancement opportunities. ULIPs also provide good cover against death. They also serve as means for long term savings that gives maximum benefits. In ULIP, some part of your investment is reserved in life protection cover and the rest is invested in funds like stocks and bonds. In simple terms, ULIP are a combination package of life cover and investment.
The different types of ULIP plans include the following: - Retirement Plans - Wealth Plans - Child Education Plans - Health Plans Based on life’s priority, one can invest in any of the above ULIPs accordingly. Best ULIPs are the ones that give you appropriate life cover, better fund option and a long period investment.
ULIP plans are seldom understood by a common man. As a result, they are the most miss sold service. Before choosing a ULIP plan, read the guidelines for your investments: - Understand ULIPs : In market there are many ULIP schemes available which makes it more difficult to choose. So do a complete research on the company, their product, terms and conditions. - Analyze Your Needs : Evaluate your risk and needs. Later choose a plan that will take care of all your requirements. - Online Research : When you do online research on your own, you can easily extract database of multiple companies offering you ULIP plans. Next, you can deeply study their product and also know about user opinions through forum portals. - Consult An Experienced Advisor : Before selecting any insurance plan, make sure that you consult an expert insurance advisor who has complete knowledge of this sector. However, make sure that the person should not be broker of any insurance company. Also, track his records of previous clients.