Be a Smart Investor- Manage ULIP Well

Unit-Linked Insurance Plan or ULIP offers dual benefits of insurance and investment. However, owing to its market-linked structure, it is usually wrongly titled as a risky investment. The truth is that ULIP is not a risky option if you clearly understand the dynamics of the market. You should know when and where to invest.

4.8^~ Rated
7.7 Crore Registered Consumer
50 Partners Insurance Partners
4.2 Crore Policies Sold

ULIP Plans

Plan starting from ₹1,000/month
Save upto ₹46,800 in Tax under section 80C^{^}
Zero LTCG Tax^¶
In built life cover

We are rated^~

7.7 Crore

Registered Consumer

50

Insurance Partners

4.2 Crore

Policies Sold

Top performing plans with High Returns^**

Invest ₹10K/month & Get ₹1 Crore^# on Maturity

Your Name

+91

Mobile Number

Your personal information is secure with us

By clicking on "View Plans" you agree to our Privacy Policy and Terms of use

Get Updates on WhatsApp

We are rated^~

7.7 Crore

Registered Consumer

50

Insurance Partners

4.2 Crore

Policies Sold

Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

Tread smartly in balancing the funds and you will get good returns without any risk. There are various options which if exercised judiciously can insulate ULIP from market volatility. Let’s understand this in detail.

Transparent Structure

ULIP is a transparent structured policy, which means all charges and commissions are clearly mentioned in the benefit illustration.

Insurers send daily NAV updates along with quarterly and yearly reports on the performance of funds. It means you can keep a watch on your investment and make changes accordingly. ULIP offers a wide range of fund options, which are detailed below-

Fund Name	Nature of Investment	Risk Type
Equity Funds	Investment is done in company stocks to achieve the aim of capital appreciation	Medium to High
Balanced Funds	It combines equity investment with fixed interest instruments	Medium
Secured Funds (also called cash funds)	Investment is done in bank funds and money market	Low
Debt Funds (also called income, bond, and fixed interest funds)	Investment is done in corporate bonds, government securities, and other kinds of fixed income instruments	Medium

Disclaimer: Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product offered by an insurer.

Invest in any fund options based on your risk appetite. Make sure to check the past performance of the fund before predicting its future behavior.

Switching to Ride out of a Volatile Market

Fund switching is a convenient way to protect your investments from market fluctuations and maximize returns by striking a perfect balance between equity and debt. For instance, if you foresee a dip in the stock market, you can switch money from a fund with 100% equity to a balanced portfolio that has 60% equity and 40% debt. Similarly, when you are approaching a milestone in your life where finances are required, like a child’s education or marriage, you can move a portion of the investment to debt/liquid funds. This will ensure that a large corpus is available at the time of need.

If you are not market-savvy or don’t have the time to keep a watch on the market, you can opt for the asset allocation fund option. On your behalf, the fund manager will switch between equity and debt after considering the overall market scenario. ULIPs allow a certain number (depending from company to company) of free switching options in a year.

Premium Redirection

You can redirect all future premiums to different funds chosen by you during the inception of the policy while keeping the existing units intact. If you think that the market isn’t performing well, you can redirect your future premium to a less-risky fund. Once your funds have built up, you can redirect the premium to balanced funds and enjoy substantial returns on your investment.

Final Thoughts!

In a nutshell, ULIP is a long-term product that involves commitment and disciple. Those who don’t have market understanding or time can take the help of insurer’s fund managers.

Go ahead, invest in ULIP and exercise any of the above options, if required, to keep your investment safe.

†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.