Get Protection + Monthly Income after Retirement

Is it the right time to pick ULIPs over conventional insurance plans?

Dec 05, 2017 | 2 years ago | Read Time: 2 minutes | By iKnowledge Team

Who doesn’t like extra benefits? Imagine you have bought an economy class ticket only to realise later that you have been bumped into first class at no extra cost! ULIPs are like that. They offer multiple benefits in a single package.

What are ULIPs?

Unit Linked Insurance Plan, popularly known as ULIP, is a life insurance product. It offers the policyholder both investment and insurance (risk) cover in a single package. In other words, you have an insurance cover and the choice to invest in stocks, bonds and mutual funds.

ULIPs can manage both the insurance and investment segments based on your specific needs and requirements. Keeping this in mind, Aegon Life offers you a vast range of ULIP plans.

Conventional insurance plans

There are several conventional life insurance cover plans as well, which contrast with ULIPs. So, what are they?

Such plans are regular insurance products that offer guaranteed returns to the policyholder at the time of maturity. They typically invest in very low risk-return avenues.

So, if you are wondering which one is better – ULIPs or conventional insurance plans? Here are four differences between them that you need to know before investing in one:

Pay-out on maturity

You get the sum assured only at the time of maturity if you opt for a conventional insurance cover. In case of ULIPs, you can redeem your units at the current unit value prices. Some plans also offer additional units to the policyholder from time to time. This can be on an annual basis or at the time of maturity.

Transparency

It is always important to know how your investments are faring at any point in time. However, conventional insurance plans do not offer you this facility. The premium you pay is invested in a common fund and there is no way to track your individual portfolio.

Unlike conventional insurance plans, ULIPs allow you to monitor your portfolio always. You can find out the value of the units you hold at any point in time. You are also informed about the exact percentage of the premium that is invested in different avenues.

Partial withdrawal

Partial withdrawal is a facility where you can withdraw a small portion of your fund before the maturity period. This can be quite useful if you require money in case of an emergency. ULIPs offer you the partial withdrawal option provided that you maintain the minimum fund value. In contrast, conventional insurance plans do not have a partial withdrawal facility.

Switching options

One of the best features of ULIPs is that you have the freedom to switch your investments between different funds. This is an advantage because, as an investor, you have the freedom to switch between different investment options based on market fluctuations. As a result, you can balance your equity-debt portfolio to maximise your returns. The conventional options don’t provide you that freedom. All the investment decisions are taken by the insurer.

To sum up, ULIPs provide what conventional covers don’t, and more. If you are looking for insurance and investment, ULIPs are the right pick for you. You can even choose between managing your funds on your own or allowing your insurance partner to manage it for you. iMaximize – a ULIP from Aegon Life has been designed keeping in mind all your financial needs. So start investing today and get maximum benefits for your future.


PRODUCTS

iTerm Plan

Life Insurance Plan with 3 Options to Choose from

  • Life Protect (Life cover till age 100 years)
  • Protect Plus (5% Automatic Increase of life cover)
  • Dual Protect (Protection + Regular Income)
iTerm Plus Plan

Life Insurance Plan with 4 Options to Choose from

  • Life Plan
  • Life Plus Plan
  • Life & Health Plan (10 Critical Illnesses covered)
  • Life & Health Plus Plan (36 Critical Illnesses covered)
iInvest Plan

iInvest Plan with 3 Options to Choose from

  • Increases Your Investment
  • Boost Your Fund Value
  • Withdraw Your Investment
Secure Your Liabilities Now. Calculate your Premium!
Gender
Do You Smoke?

Date of Birth

Your Monthly Premium for Aegon Life iTerm Insurance Plan

RELATED ARTICLES