In simple terms, after selecting the right Ulip, one can keep investing a fixed sum for 7, 10, 12, or 15 years or even more and then get the maturity amount at the end of the term. In case of death during the policy term, there is a death benefit that is paid to the nominee.
If you are buying a Ulip, part of your premium goes towards meeting mortality charges, that is, the cost of insuring your life. The remaining amount, after deducting the insurer’s costs, is invested in different fund options like shares, debt or a mix of both. Net of charges let the premiums be invested in any of the fund options including the all-equity fund option. Use the feature of partial withdrawals during the term of the policy to fund intermittent needs such as meeting petty expenses for kids or even education and marriage needs.
Unit-linked insurance plans (Ulips) are one such tax saver which suits investors who do not have financial discipline and inclination to keep investment and insurance separate but yet need to save for their long-term goals. Additionally, they still need to take adequate life cover preferably through a pure term insurance plan.
The premiums paid, after deduction of initial charges, if any, are put into different asset classes or fund options.
Most Ulips offer several fund options across equity and debt asset classes and in addition offer strategies to make optimum use of them. The premium may be allocated in any of the largecap, mid-cap or small-cap equity fund or even in the debt funds of a Ulip as per one’s choice. It refers to a fixed portfolio strategy. Thereafter, the policyholder may choose to change the allocation proactively online or offline by making a switch. In addition, Ulips offer the following strategies for the benefit of the policyholder.
1. Automatic Transfer Strategy
Continue reading your story on the app
Continue reading your story in the magazine
Tips to create wealth over long term by investing in mutual fund SIPs
Mutual fund has emerged as a popular investment option for meeting the longterm goals. The popularity of mutual funds is increasing day by day because of simplicity, transparency, and as a cost-effective tool to generate a high return compared to other investment options.
Investing in debt mutual funds: Things to consider before you invest in them
The interest rate has been falling creating a precarious situation for the senior citizens and retirees. Fixed-income investments are providing low yields and thus retirees are finding it difficult to manage their regular income needs.
01. Insurance sector has grown at a healthy 9.7% in 2020-21
Ask the Expert
Q Dear Sir, I am going to retire from my private company service after one year. I will not get any pension and my monthly expenses are expected to be around Rs. 50,000/-. How much retirement corpus I must accumulate to ensure that I am able to meet my expenses? -Ajay Sahni, Kanpur
MUTUAL FUND NEWS
01.Key officials in AMCs to get 20% salary in the form of MF units: SEBI
Health Insurance amid Covid-19: Know about plans, coverage, home care treatment and claim process
The Covid-19 pandemic in the country is having a big toll on the health and lives of the population. While it may too early to estimate the extent of damage to the economy, some of the impacts on personal finances may already be seen.
Should you bet on dividend yield funds?
One value-oriented mutual fund category that has made a comeback over the past year or so is dividend yield funds. The category has given investors an average return of 68.9 per cent over the past year.
Natural Ways To Prevent And Cure Diabetes
Diabetes is becoming an epidemic in India and everywhere. Diabetes is commonly known as the ‘high sugar’ problem. Currently, a fasting blood glucose (sugar) level of 126mg% or more is defined as diabetes. The blood glucose level is normally kept in range by a hormone called insulin, which is produced from the pancreas. Insulin controls blood glucose levels by allowing glucose to enter the cells so that it can be used as fuel by the body.
5 Mutual Fund Features To Help You Build A Robust Investment Portfolio
It has been a blockbuster performance of equity mutual funds in 2020-21. The return generated by most equity mutual fund schemes in the last 12-months has been nothing short of a spectacular performance.
How To Start Investing In Mutual Funds?
When you begin investing in mutual funds for the first time, you must take each step with a lot of care. Your initial experience must be pleasant so that you feel encouraged to keep on investing for your entire lifetime.
Ease Of Compliance
Income-tax slabs unchanged, but small taxpayers will enjoy procedural relief in filing ITR and resolution of disputes; High-income earners may feel the pinch though
Cost Is The Key
New-age ULIPs are offering big ticket discounts to lure millennials. There’s a fear of hidden costs
ईपीएफ और यूलिप से कर लाभ पर सीमा लागू
कर निर्धारण पुनः खोले जाने के लिए समय-सीमय में कटौती से करदाताओं का भय घटेगा
Women should choose customised insurance covers for special needs and financial protection
Tax-Saving: How To Avoid Last-Minute Pitfalls
The multiple advantages of planning your investment decisions early in the financial year
ULIP VS ELSS - Not Just A Matter Of Choice!
Undoubtedly, ULIP figures heavily in the minds of investors seeking an option for tax saving because the scheme also offers life insurance cover. However, does this attraction compensate for the other benefits offered by ELSS? Read on to know how the two fare against each other
Financial Advisors & You
In personal finance space, there are a lot of people who call themselves as financial advisors. However, it becomes difficult to identify a true financial advisor from myriad choices, forget demanding appropriate services from them. DSIJ explains different types of financial advisors and the services that you should demand from these advisors for a great service experience.