LIC ULIP Policy, LIC ULIP Policy details, LIC Unit Linked Insurance Plans & Policy:
ULIP is a sort term investment plan in which the customer invests in capital market instead of insurance plan. These are a kind of adapting insurance plans which fluctuate as per the market. ULIP allows protection and flexibility in investment which is not present in other life insurance plans. These plans provide dual benefits of investment and insurance coverage as well. It allows you to choose the insurance plan by your own and also uses the premium paid by the policyholder to purchase units in investment assets. Also check out LIC child Plans.
Unit Linked Plans are worth for whom hard-earned money matters a lot. They can see their savings yielding rich benefits and also helps them saving taxes though they do not have any consistent income. The premium paid by the policyholder is invested in the funds chosen by the policyholder as per his risk appetite. The company has various funds each with low, high and medium risks. In this plan the investment is represented by the value it has attained called as “Net Asset Value” (NAV). Whole premium is not allocated to the fund. Charges like fund administration charges, mortality charge, administrative charge etc. are deducted from the premium paid. In Unit Linked Insurance Policy, Unit is the component of fund. The coverage amount provided under this plan will be expressed as a multiple of the amount of premium paid.
There is one important term called “Lock-in period” in which the premium paid gets locked-in for 5 years i.e. it does not allow customer to withdraw any money during this period. After 5 years the customer can freely withdraw the desired money from fund value through partial withdrawals. It also provides Switching option to the customer in which he can switch from one fund to another. The returns depend upon the performances of the fund in capital market. The most important thing in ULIPs is to remember that, the investment risk is generally borne by the investor. There are various Unit Plans as:
- Profit Plus: It is a unit linked endowment plan in which whole amount can be paid either in single premium or uniformly over 3, 4, 5 years.
- Money Plus I: It is also a unit linked endowment plan in which premium is to be paid regularly and it offers investment cum insurance plan during the term of policy.
- Market Plus I: This is an ideal retirement plan. It is unit linked pension plan in which the pension is payable after a specified period. The investment funds like Bond, Secured, Balanced and Growth Fund are offered. It is not only a pension plan there are several other options and features associated with this plan.
- Fortune Plus: It is a unit linked Assurance plan. The premium payment term is 5 years and you have to pay 50% of the total premium to be paid under this policy in first year only.
- Child Fortune Plus: It is a unit linked plan which ensures financial protection for your children in future. You can invest in this insurance plan today and it will definitely fulfill all the educational and other needs of your children tomorrow.
For more details log in to www.licindia.com. ULIP is the best investment cum insurance plan for short term investment.