Benefits of investing in a Unit Linked Insurance Plan

Feb 28, 2017 | 2 years ago | Read Time: 2 minutes | By iKnowledge Team

Benefits of investing in a Unit Linked Insurance Plan

Financial planning is important for all. With so many products available in the market, it may become difficult to select a single plan. However, if you have clarity and goals set, it is easier for you to decide which product to opt for. So if you wish to make an investment as well as buy an insurance plan, a Unit Linked Insurance plan is the best option. There are a number of benefits associated with it. Take a look:

Fund Managers

It is not important for you to have technical expertise on this subject. Just like mutual funds have professional managers, similarly, these managers help you in making investments with a Unit Linked Insurance Plan. They are backed by an entire team of analysts, researchers, economists and other professionals to help you make the right decision.

A good combination

ULIP is a solution for two products at the same time. On one hand you pay premium for the life insurance plan, on the other hand, you make the investment as per your choice. This way not only do you ensure protection as well as plan your finances for the future, both at the same time. This works as a good combination of life. However, it is recommended that you purchase a pure protection plan along with ULIP as it offers greater security.


ULIP plans offer a good amount of flexibility as compared to other plans. If you have a Unit Linked Insurance plan for a period of more than 4-5 years, it is possible to increase or decrease the insurance cover in case of plans offered by a few insurance providers. While the option of increase in regular premium is not offered currently, however, it is possible to make additional investments in the form of ‘top-ups’.

Varying Risk

ULIP does not cater to specific type of investors, in fact, it serves people who have varying risk capacity and not those who are opposed to taking any kind of risk. Depending on the amount of risk an investor can take, you can select the fund types for the investment of premium. ULIPs offer different types of funds such as equity which invest in company stocks, balanced which have a healthy mix of equity and debt, income funds which invest in corporate bonds, and cash funds which invest in money market instruments.

Switching funds

Needs change over a period of time which also lead to change in investment goals. In case of a Unit Linked Insurance Plan, an investor is free to switch from one fund to another. This is another form of flexibility that this plan offers. There are other benefits that accrue to a ULIP such as the settlement option wherein you can choose to receive the maturity gains either in varied instalments or as a lump sum amount. A ULIP also allows the ‘partial withdrawal’ of money which may be required during an emergency.

One of the best insurance providers that you can select is Aegon Life that offers the best Unit Linked Insurance Plan in the market.

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