Get Protection + Monthly Income after Retirement

Insurance and investments on your mind? New improved ULIPs are the answer

Dec 05, 2017 | 3 years ago | Read Time: 3 minutes | By iKnowledge Team

ULIPs have withstood the churn of time and modified the pain points to emerge as an all-weather, all-round and a multi-purpose insurance product. So, read on to know how ULIPs have evolved over time.

ULIPs 2.0

What makes new generation ULIP plans radically different from their predecessors is their whole-hearted embrace of the digitised world. With easy access to technology, a policyholder, unlike in the past, no longer has to go through a middleman or an agent to purchase a ULIP. He can directly purchase online ULIP plans from websites of insurance companies. As a result, they are convenient and light on the pocket.

A policyholder can also use the services of various aggregator websites before s/he makes a final choice.

Benefits

Flexibility

  • The policyholder can choose investment option (equity, debt or balanced fund options) based on his/her risk appetite.
  • ULIPs also allow you to move your money. For example, you can decide to move your money from debt to equity or vice versa any time you want.
  • You can change the premium amount. You also have the option to make top-up premium payments in case you have surplus money.
  • They also give you a choice of customising your online ULIP plan by adding riders such as critical illness, accidental death benefit, among others.

Transparency

ULIPs give you a 15-day testing period. You can choose to leave the plan within 15 days if it doesn’t suit you. This is known as a free-look period.

The new ULIP also lets you know about various charges such as policy administration fees, fund management and mortality charges. These charges are clearly specified in a detailed statement sent to you. They are visible on the website of the insurance company as well.

The performance of a ULIP can be monitored too. Companies update their NAVs (net asset value) daily. Because NAVs are public knowledge, you get to know whether your investment is doing well or not. For the uninitiated, NAVs are the price at which these funds are bought and sold.

Lock-in period

The old ULIP had a lock-in period of three years, which means you couldn’t redeem the amount before that period. And if you did, there was a penalty you had to pay. The revamped ones have a lock-in period of five years. This only encourages people to do goal-based investing and secure their long-term financial goals. Because you can’t take out your money for five years, the power of compounding and rupee cost average ensure your wealth grows in the long run.

Possibility of greater returns

As explained earlier, longer lock-in period helps you fetch higher returns. So, if you have the discipline and patience to wait until maturity, ULIPs can provide decent double-digit returns.

Provides tax benefits

The premium you pay on ULIP is eligible for tax deductions. You can claim tax deduction of up to Rs 1.5 lakhs, thanks to Section 80C of the Income Tax Act.

The amount you receive upon maturity and the gain you make are also tax-free under Section 10 (10D).

This claim amount is also tax-free for the nominee of the policyholder as well, in case s/he passes away during the policy period.

How we can help

As mentioned before, ULIPs can help meet various financial goals. Child’s education and retirement planning are two such long-term goals that can be achieved by investing in ULIPs. This is why Aegon Life has a plethora of ULIP options, depending on your financial goals.

  • iMaximize Insurance Plan is a plan best used for securing the education and future of your child.
  • The Future Protect Insurance Plan can be an ideal option for those who are wary of investing directly in stock markets. This plan comes with an invest protect option. This helps a policyholder gain from his investments while minimising the risks on his returns. As the policy nears maturity, the money is systematically shifted from equity to debt in the last three years.
  • The iInvest Insurance Plan is ideal for those seeking market returns. It has a lifestyle portfolio strategy that works on a pre-defined fund allocation or a self-managed portfolio strategy. This allows the policyholder to choose between six different funds. Some of the funds are equity and debt.

To sum up, Aegon Life’s ULIPs have carefully calibrated themselves to suit your needs. Now that you know the upshot of ULIPs, you can get started today!

Sources:

Aegon Life

Business Today

Edelweiss Tokio

 


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
Prev
Single premium life insurance: Are you eligible for tax benefits?
Next
What you should know about partial withdrawal from ULIPs
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