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The Unit-Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholde...
A Unit Linked Insurance Plan
(ULIP), is a financial product that
combines investment as well as
insurance. In a ULIP, the ...
When you buy a ULIP, you pay the
premium just like for an Insurance
Policy. However, unlike an Insurance
Policy, the Premi...
Whether it is for retirement, children’s
education or for other financial goals, a
ULIP continued till maturity works as a...
If you are a moderate to
aggressive investor, and look out
for growth of your money, ULIPs
may be a good option. Of course...
ULIPs offer you the flexibility of switching
the fund allocation. You can switch
between funds depending on the market
out...
The charge structure of ULIPs brings in a
Premium Allocation Charge, a Policy
Administration Charge and a Fund Management
...
For those of you who do not have the time or
expertise to invest in the market, you get an
opportunity to invest across di...
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS / FRAUDULENT OFFERS
IRDAI clarifies to public that
• IRDAI or its officials ...
What is ULIP?
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What is ULIP?

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Demystifying ULIP product category.
Understand what makes this product a good offering to achieve your financial goals.

Published in: Healthcare
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What is ULIP?

  1. 1. The Unit-Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender / withdraw the monies invested in Unit-Linked Insurance Products completely or partially till the end of fifth year. In Unit-Linked Insurance Products, the investment risk in the investment portfolio is borne by the policyholder.
  2. 2. A Unit Linked Insurance Plan (ULIP), is a financial product that combines investment as well as insurance. In a ULIP, the Premium amount, after deduction of charges, is invested into funds of your choice.
  3. 3. When you buy a ULIP, you pay the premium just like for an Insurance Policy. However, unlike an Insurance Policy, the Premium is not just for insurance but also for investment. ULIPs have different funds with different risk- return profiles.
  4. 4. Whether it is for retirement, children’s education or for other financial goals, a ULIP continued till maturity works as an advantage. Also, in the long term, risks associated with market fluctuations are greatly reduced, and the investment could fetch higher yields.
  5. 5. If you are a moderate to aggressive investor, and look out for growth of your money, ULIPs may be a good option. Of course in good times, you would make a considerable amount on your portfolio, but you also stand to make losses in a downfall.
  6. 6. ULIPs offer you the flexibility of switching the fund allocation. You can switch between funds depending on the market outlook and the risk mindset that you wish to adopt. Option to select or switch fund(s) is not available – No opportunity to customize Option to select or switch fund(s) is not applicable While the low charges in many ULIPs, offered by different Insurers1, make them attractive, the main advantage is the seamless and tax-efficient transfer from debt to equity, and vice-versa, including rebalancing the portfolio. You get tax benefits on the premiums paid and also on the returns of the policy. •Tax benefits are subject to changes in tax laws. •1. http://www.businesstoday.in/moneytoday/insurance/tips-to-invest-in-new-ulips-with-lower-cost-than-mf-charges/story/215122.html
  7. 7. The charge structure of ULIPs brings in a Premium Allocation Charge, a Policy Administration Charge and a Fund Management Charge. There is also the Mortality Charge for the life cover offered by the plan. However the new ULIPs offer minimal charges making them desirable investment option.
  8. 8. For those of you who do not have the time or expertise to invest in the market, you get an opportunity to invest across different asset classes of debt, equity, etc. It is monitored by professional fund managers, without having you to churn out the portfolio to make gains.
  9. 9. BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS / FRAUDULENT OFFERS IRDAI clarifies to public that • IRDAI or its officials do not involve in activities like sale of any kind of insurance or financial products nor invest premiums. • IRDAI does not announce any bonus. • Public receiving such phone calls are requested to lodge a police complaint along with details of phone call, number. Disclaimer: HDFC Standard Life Insurance Company Limited. In partnership with Standard Life Plc. CIN: U99999MH2000PLC128245, IRDAI Reg. No. 101 Registered Office: HDFC Standard Life Insurance Company Limited, Lodha Excelus, 13th Floor, Apollo Mills Compound, N.M. Joshi Marg, Mahalaxmi, Mumbai 400 011. Email: Buyonline@HDFCLife.in, Tel No: 1800-266-9777 (9 am to 9 pm). For more details on risk factors, associated terms and conditions and exclusions please read sales brochure carefully before concluding a sale. Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer. The various funds offered under the ULIP contracts are the names of the funds and do not in any way indicate the quality of the plans, their future prospects and returns. "The name/letters "HDFC" in the name/logo of the Company belongs to Housing Development Finance Corporation Limited and is used by HDFC Life under a license/agreement." ARN: MC/08/2016/8525

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