For those investors who may not be very friendly with investment options, ULIPs work as the best option. This is because everyone may not be great at managing portfolios well. However, when it comes to ULIP, one can certainly remain invested for a long period of time, receive the benefits of life cover as well as enjoy the advantages of debt or equity investment. There are a number of ULIP plans in the market and it may be a bit difficult for you to choose one. Here are a few guidelines that will enable you to select the right ULIP plan for yourself.
The most important component amongst all the benefits in terms of insurance is the life cover. The correct life cover can be calculated on the basis of your income, age, the number of dependents, etc. There are possibilities of your insurance changing as these parameters may alter as well. There is no upper limit set for the life cover. Therefore, the wisest decision that you can make is to select the product which promises maximum flexibility in terms of sum assured, payment of premium, rider options, etc. You can also check for flexibility in terms of asset allocation.
Besides the features and benefits of the products, there can be variation in the maturity pay-out on the basis of fund performance. So before you decide to part with the money, it is essential to study the fund’s track record. You can always strike a cheaper deal so remember to draw comparisons. With a number of companies providing ULIP plans, you should not regret having purchased a particular one that offered you more benefits. It is recommended that investors carry on with their policies until the time of maturity and enjoy the benefit of compounding effect and bonuses.
When purchasing a Unit Linked Insurance Plan, it is important not only to select an insurer who provides a good plan but also one which offers an efficient after-sales service as well. Therefore, you can check the claim settlement ratio in order to ensure that your claim will be settled in a smooth manner. All of this information is only accessible if the ULIP investment you that you have made is from a company which provides transparency to the customers. Depending on the policy information disclosed by the company, you can comprehend not only the policy better, but also build a certain level of trust.
