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Hi There! Is the financial security of your family your number one concern? Are you looking to insure yourself and your family and invest money at the same time? Well, you’ve come to the right place for knowledge.
Many working professionals are looking to secure financial independence in the future for themselves and their loved ones. ULIPs are thought of as one of the best investment options in the Indian market today!
What is a ULIP?
Unit Linked Investment Plan (ULIP) is a tool that combines the benefits and purposes of investment and Insurance. Classified as a long-term plan, this investment tool helps users invest a certain amount of their premium into capital markets - consisting of both debt and equity funds. Based on the investor’s risk preferences, and the flexibility of investment, fund houses assign ‘units’ that ensure returns to the investor.
The purpose of the best ULIP insurance policy is to help users attain their goal of investment - whether it's purely to create wealth or to help save for later life-events.
To read more about the option, and possibly buy a plan on our platform, visit our dedicated ULIP policy portal. We’ve covered all aspects - ULIP Types, ULIP Charges, ULIP tax benefits, ULIP plan returns, etc.
This page highlights India’s best ULIP plans in India. So what’re you waiting for? Read on below and choose your ULIP Plan on Coverfox!
This is a special investment tool that combines the benefits of both - insurance and investment.
When you buy a ULIP investment, you pay a specific amount as premium. This premium is further separated into two parts - One part of this premium is counted as the insurance premium while the other is counted as investment premium.
The second half of the premium is invested by the insurer into specific funds. These funds have a collection of financial instruments - equity, debt, hybrid and balanced funds - all of which have certain outstanding risk factors.
Before you invest, you need to figure out why you want to invest in the best ULIP policy. Depending on these goals, you’ll arrive at a suitable amount of risk you’re willing to take with your investments.
Simply put, the returns you get out of ULIPs depends on the risk you’re willing to take. So, before you invest in the best ULIP fund, according to you, make sure you are confident of the risk you’re ready to take.
Higher the risky funds in your investment portfolio - the higher the chances of gain AND loss. The insurer will only invest in funds chosen by YOU - which means you’re in complete control of the risk factor. Remember to choose wisely for a stable income.
If you’re reading this, then it’s worth noting that you could be someone perfect to invest in these plans. But, people from all over the country invest in ULIPs for different reasons and purposes.
They are best suited for
Individuals with long-term financial goals and are willing to remain invested for five years.
It is also an excellent option for those investors aiming for wealth creation and retirement funds.
Those investors seeking tax benefits for their investments. (ULIPs qualify for tax deduction under Section 80C of the Income Tax Act, 1961. ULIPs returns, toom, are tax-free under Section 10(10D) of the Income Tax Act.).
So, you’re planning to buy your investment policy on Coverfox? Hurray! We couldn’t be happier. Purchasing the best ULIP plans 2020 on or platform is no big deal, but we’ve got your covered in any case.
The process is simple. Read on below:
9.Pay the Premium using Credit Card, Debit Card, UPI, or Netbanking.
To be eligible to purchase ULIPs, one needs to fulfill a set of criteria. They are as follows:
To invest in the best ULIP investment plan, you need to produce some vital documents for identity verification and investment record purposes. Some of the most critical information that needs to be submitted are:
Why is ULIP the right investment product?
ULIP is considered the right investment product as premium payment happens monthly, quarterly, half-yearly, or annually or even as a lump sum. Also, ULIPs have the potential to fetch better returns as compared to any other insurance product because they have an equity advantage over other traditional investment options. Moreover, ULIPs invest the premium paid by the investor in numerous asset classes through various funds.
What are the Benefits of ULIP?
ULIPs offer flexibility in the following ways It allows the investor to switch between funds and match his risk needs. It allows the investor to make partial withdrawals; however, it may attract charges and is subject to specific terms and conditions. It allows the investor to make single lump-sum additions to their premiums and increase their investments at any point in time through top-ups.
ULIPs offer more than 6-7 types of investment funds from which to select. Some of these funds are equity-based, offering good market-linked returns and increasing the overall returns derived from a ULIP.
A ULIP offers the dual advantage of life cover and investment. Not only are you secure, but you also have the option to gain higher returns and build wealth.
Being an investment cum insurance plan with a long term investment horizon, a ULIP helps meet the expenses arising out of essential milestones in life such as marriage, college education, etc. So, if you have a long term goal for yourself or your family, a ULIP is a good investment plan.
If an unforeseen event leads to your demise, the ULIP will provide guaranteed death benefits to your wife and child. Thus, your child’s future will not get affected by your absence.
Retirement is an important stage of every individual’s life. Throughout investment, a ULIP scheme will gather enough corpus which helps you live a stress-free life post-retirement
ULIPs allow you to keep track of your investment portfolio. They also intimate you of the percentage of premium that along with the charges levied regularly. As an investor, you remain informed continuously about the value and number of fund units that you hold.
When choosing a Unit Linked Insurance Plan, one can decide the various fund options, based on the risk-taking appetite. In case you wish to gain higher returns and have the capacity to take higher risks for the same, you can choose to invest in an equity fund. Hence, if you win, you earn big. However, if you wish to take lesser risk and are satisfied with medium to low returns, you can choose to invest in a debt fund. ULIPs also provide hybrid funds that suit an individual investor's needs.
Along with investment benefits, ULIPs also provide rider options for additional coverage to take care of your loved ones. With rider options such as accidental death rider, critical illness rider, and term rider, you can rest assured that ULIPs not only take care of your insurance needs but are also beneficial for your family.
As ULIPs are life insurance products, they offer tax benefits in the form of deductions of the premium amount up to Rs. 1.5 Lakh from one’s taxable income and tax-free maturity or death service paid.
What is the meaning of sum assured in ULIP?
Sum assured in ULIP is the minimum amount under death benefit that a nominee receives in case of death of the assured within the policy term.
What are the various riders? (Premium waiver, Income benefit, Critical Illness)
Riders present additional benefits for ULIP holders. It is an efficient way of customizing the ULIP to match the policyholder’s present and future needs.
Here is a list of riders that for ULIPs:
What is fund value in ULIP?
The total fund value in a ULIP is the prevailing price of the ULIP plan i.e. NAV multiplied by the total no. of units available in the policyholders account.
What is the premium allocation charge in a ULIP?
These charges are levied before the premium is paid by the investor. They are the initial charges imposed by the company.
Why is ULIP a good investment product?
ULIP is considered a good investment product as the premium can either be paid monthly, quarterly, half-yearly or annually or even as a lump sum. Also, ULIPs have the potential to fetch better returns as compared to any other insurance product because they have an equity advantage over others traditional investment options. Moreover, ULIPs invest the premium paid by the investor in numerous asset classes through various funds.
What is the maturity benefit of a ULIP?
This is the fund value payable to the policyholder when the policy reaches the date of maturity.
Why is ULIP a good investment product?
LIP is considered a good investment product as the premium can either be paid monthly, quarterly, half-yearly, or annually or even as a lump sum. Also, ULIPs have the potential to fetch better returns as compared to any other insurance product because they have an equity advantage over other traditional investment options. Moreover, ULIPs invest the premium paid by the investor in numerous asset classes through various funds.