Know More About The Unit Linked Insurance Plans To Take A Better Informed Decision

The Unit Linked Insurance Plan (ULIP) is a life insurance plan that allows you to invest your money in the market for financial goals. You can protect your family and secure your future with Unit Linked Insurance Plan. You have the liberty to choose the right plan for future financial gain.

Know More About Unit-Linked Insurance Plan:

You can avail of dual benefits with a Unit Linked Insurance Plan (ULIP). That means you can get life cover as well as diversify your investment in the open market. The returns you get are incidental to the market performance, which will help you in getting better maturity benefits in the long term.

You can customize your investments with a ULIP plan. You can invest, keeping the risk factor in mind. Investors that seek lower risk can choose the debt funds option, whereas equity investments can choose plans with higher risk factors.

Moreover, under section 80c, you will be eligible to get tax benefits against the premium amount you have paid.

Death Benefits

A Unit Linked Insurance Plan (ULIP) provides a death benefit that offers an amount payable in case of the policyholder’s unfortunate death. However, if the policyholder survives beyond the maturity period of the ULIP plan, he will receive a maturity benefit. Maturity benefit equals the amount of fund value.

Benefits Of ULIP:

  •  ULIP plan is flexible:

Unit Linked Insurance Plans give you the liberty to choose your premium amount based on your needs. You can select your funds as per your requirements. You can choose a plan according to your financial goals and risk factors.

  • Fund Liquidity:

You have the liberty to fully or partially withdraw funds from your account at the time of urgent need, irrespective of the term period. However, you can withdraw funds after the lock-in period of 5 years.

  •  Savings are systematic:

ULIPs  provide you with the opportunity to save a part of your income for future use. This systematic savings plan helps you in your time of need.

  •  Higher accumulated fund value:

ULIP plans help save your earnings and grow wealth by allowing you to invest it in the market for future financial gains.

  • Tax Benefits:

With ULIP, you can get tax benefits as premiums paid are deductible from taxable income under Section 80C. According to the Income Tax Act, 1961, the maturity amount you receive is exempted from tax subject to conditions under Section 10(10D). When you pay a premium of more than 10% of the sum assured for a policy issued after 1st April 2012 or more than 20% for policies issued before 1 April 2012, the maturity amount received from the ULIP policy is fully taxable.

  • Switching Benefit:

 You can also switch between the equity and debt funds without paying any tax.

What Documents do you need for ULIP Plans?

ULIP plans require minimum documentation with a simple application and withdrawal process. First-time investors will never feel any difficulty understanding the plan’s process. If you want to apply for the ULIP plan, then you have to fill up the application form available at the nearest branch. Then you need to arrange required documents like identity proof, bank account proof, address proof, and a recent photograph and submit them along with the application.

Required documents include:

  • Identity proof: you can submit your passport, Voter Id card, Driving License, or Aadhaar card as identity proof.
  • To submit the bank account proof, you need to arrange your passbook or cancel Cheque.
  • Another important document that you need to submit is the residence proof. For this, you may consider using any utility bill of the last two months of any service provider.
  • You can also submit a bank account or post office saving account statement.
  • Letter of allotment of accommodation from the employer can also serve your purpose.

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