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ULIP Plan is a life insurance product that offers risk cover for the insured together with investment options to invest in some qualified investments like mutual funds, bonds, and stocks. As one integrated plan, the protection part and the investment part can be managed depending on the specific choices and needs.What is ULIPIn these plans, the investments are subjects to the risks associated with the capital market. The policyholder bears the investment risk on his/her investment portfolio. Hence, it is recommended to make an investment choice basis the needs along with the risk appetite.Another factor that has to be taken into consideration by the policyholder is the future needs of the invested funds. Moreover, a unit linked plan is much more transparent. The charges including fund management charges, allocation charges etc. are clearly stated upfront.Unit Linked Insurance Plan also allows its investors to switch their investment from debt to equity and vice-versa, without running from pillar to post and any worries of being charged.ULIP plans were first introduced in India by Unit Trust of India (UTI) in 1971. This was followed by ULIP offerings from Life Insurance Corporation in 1989. Initially, a lot of investors shied away from investing in ULIPs due to the high charges associated with this insurance-investment product. However, in the recent times, major life insurance providers including Bajaj Life, HDFC, ICICI Pru, and Edelweiss Tokio came out with new-age ULIP products with bare minimal charges and multiple features to ensure maximum returns and comprehensive insurance protection for the investors.In 2018, Union Finance Ministry reintroduced Long-Term Capital Gains (LTCG) taxes on equity-linked mutual fund schemes. Soon after the announcement, a large majority of life insurance companies started offering new-age ULIP plans as an alternative for equity-linked mutual fund schemes. In no time, ULIP plans started ranking alongside the most sought after investment instruments for investors with different risk appetite and budget.
An investment plan is a financial product that provides the opportunity to create wealth for the future. Life Insurance products are often used as investment instruments. The advantage of investing through a life insurance plan is that it not only allows you to create wealth for the future but also offers comprehensive life coverage at the same time.
These plans are basically of two types, Unit Linked Insurance Plans or ULIPs that provide returns based on market performance, and traditional endowment plans that offer a lump sum or annuity pay-out at the end of the policy term when the life insurance policy matures. These types of saving schemes or investments offer life coverage and returns but differ in their construct.A sound investment plan with life coverage and returns invests the premium paid by policyholder in the market instruments and give market returns. These returns are comparatively volatile as they depend on the performance of the stock markets.Whereas, an endowment plan offers lower but safer returns. However, a customer does not get to know where they are saving money or it is being further used due to the opaque construct of endowment plans, unlike ULIPs where they know where their fund is being put. ULIPs offer customers the option to check the status of their investments through a figure called the Net Asset Value (NAV), among others.Nonetheless, endowment plans have their own benefits. Where ULIPs give the policyholder a lot more flexibility and transparency, endowment plans act as a guaranteed return investment plans option as they offer definite profits
Online insurance comparison portals and insurance company’s website provide a ULIP calculator for you to better understand the amount of cover and corpus you need. This ULIP calculator helps to calculate the future value of an investment. You can key in details like investment amount, investment frequency, the number of years you want to make an investment, percentage post-tax annual rate of return earned on investments, etc. in the ULIP calculator and get an idea of which investment makes sense for you.
ULIP plans come packed with a variety of features to aid the investors make sure fiscal security against all the future adversities, enjoy tax benefits, and maximise their financial corpus manifold. No wonder, unit linked insurance plan remains the investment choice for both novice and seasoned investors. Here’s a little rundown on some of the key features of ULIP, which gives an additional edge over the other investment options:
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| S.no | Insurer | Third Party Cover | Cashless Network Garages | Add On Covers | Special Features | Exceptions |
|---|---|---|---|---|---|---|
| 1 | Table cell | Upto 7.5L for third party property damage | 4000 and more | Default: Roadside Assistance plan (RSA)* Key & Lock replacementOptional: Zero Depreciation (ZD) Engine Protector PA for Passenger Electrical and Non Electrical Accessories |
RSA and Lock & Key included in all policies by default Instant Policy Issuance Receive Instant Claims Assistance and SMS updates on your motor claim status through 24x7 call-centers. |
RSA cover available for vehicles upto 15 years old Lock & Key cover available for vehicles upto 10 years old ZD and Engine Protector available till 5 years old |
| 2 | Table cell | Upto 7.5L for third party property damage | 2300 and more | Zero Depreciation (ZD) Roadside Assistance plan (RSA) Consumables NCB Protector Hydrostatic Lock Cover Invoice Cover PA for Passenger |
Receive Instant Claims Assistance updates on your motor claim status through 24x7 call-centers. | ZD and RSA plans available for vehicles upto 5 years old Consumables, NCB Protector and Invoice Cover for upto 2 years old vehicles |
| 3 | Table cell | Upto 7.5L for third party property damage | 6800+ | Zero Depreciation (ZD) Roadside Assistance plan (RSA) Engine Protector PA for Passenger Electrical and Non Electrical Accessories |
Unlimited claims for ZD plan in a year! Occupation and Age discounts available Comprehensive support through our dedicated customer support team |
ZD plan available for vehicles upto 5 years old; require previous insurance also to have ZD Engine Protector is available for vehicles upto 2 years old |
A beginner can invest in the following investment instruments: Mutual funds with low-initial-investment Enroll in the retirement plan of the employer Invest in bonds or fixed income plans Investing in real estate.Before investing in these instruments, it is suggested to understand well about them.
The top investments with high returns are: Direct Equity Equity Funds: Small and Mid Cap Plans Initial Public Offering Equity Linked Savings Scheme Peer - to - peer platforms Real Estate
Some of the best investment plans in India are: National Pension Scheme UTI Retirement Solutions HDFC Pension Fund SBI Pension Fund Fixed Income Plans National Savings Certificate Pradhan Mantri Vaya Vandana Yojana Senior Citizen Savings Scheme FDs from Bank Mutual Fund Investment Plans HDFC Small Cap Fund L&T Midcap Fund SBI Small Cap Fund Aditya Birla Frontline Equity Axis Bluechip Fund PPFAS Long Term Equity HDFC Balanced Advantage Fund L&T Hybrid Equity Fund ICICI Balanced Advantage Fund Tax-Saving Mutual Fund Plans Mirae Asset Tax Saver Fund Axis Long Term Equity Fund Aditya Birla Sun Life Tax Relief 96 Although law mandates insurance policy for 3rd party only but it is strongly advised to buy a comprehensive insurance policy that protects your vehicle from man-made or natural calamities. With comprehensive cover, you can claim from your insurer for accidents or damages caused to your vehicle. In the absence of comprehensive cover, you need to foot the entire bill on your own. Thus, with comprehensive insurance policy on your side, you get complete peace of mind that whatever happens to your vehicle on the road, your insurance company will share your financial losses.
The steps to learning investment are given below: Step 1: Get Finances in Order: Before jumping into an investment, it is suggested to first analyze your finances and get them sorted. Step 2: Know the Basics of Investment: It does not require any special skills to start investment; however, it is suggested to learn some basic terminologies of this field. Knowing the terms of investment help you to take an informed decision. Step 3: Set the Goals: After understanding your investment budget and after learning about the basics, the next step is to set your goals. Having a goal helps you to take the most suitable decision about investment. Step 4: Understand Your Risk Tolerance: Would a small loss of money via investment make you weak? Would you be able to bear some loss of your invested money without much effect? These are some of the questions that you can ask yourself in order to access your risk tolerance. Since investment can be risky as well as advantageous. Moreover, the investment with more risk offers more benefits in contrast with the investments that are of low risk. In this way, select your risk appetite accordingly. Step 5: Get to Know Your Investment Style: As you know and understand your investment goals and risk tolerance power, it is time for you to know your investment style. For example, if you are an aggressive investor, then you will like to invest your money in equities. So, find an investment style that best suits you. Step 6: Know the Investment Cost: It is important to know the investment cost. This is because some investment cost cut down the return of the investment. Step 7: You Can Take the Help of an Advisor or Broker: The type of the broker needed by you depends on the amount of time that you are willing to give to your investment as well as your risk tolerance. However, before choosing a financial advisor, it is suggested to know his/her reputation in the market and his/her performance. Step 8: Select Investment Type: Now this step is interesting because here you choose your investment type. However, it depends on the above factors, but if you are a conservative investor, then you should go for low-risk investment options like money market funds. Step 9: Keep the Emotions Far Away: Never let the greed or fear inflate the losses or limit the returns. It is suggested to keep your emotions far away from your investment. Step 10: Review Your Portfolio and Adjust Accordingly: The final step in the investment journey is to review your investment portfolio from time to time. This is because after some time you may want to rebalance your investment in order to get the best returns.
Car insurance companies offer a discount on the premium for installing anti-theft devices approved by Automobile Research Association of India/ARAI. It enhances the security and reduces the chances of making the claim and for this reason, discount is provided on the premium.
Car insurance companies give 50% discount on the own damage premium for handicapped people, provided the vehicle has been modified for their use.
Total loss means accidental damage to a vehicle where insurance company’s share is more than 75% of the IDV.
If you have LPG or CNG fitted in your, you have to get it endorsed in your Registration book or RC. Then, inform your insurer about the change to get it endorsed in your car insurance policy. As the cost of premium will differ basis on the fuel type of your car.
Break in renewal policy is one of the simplest options available in the market to renew your lapsed policy. It means you can renew your expired policy without any inspection and documentation. It is not only hassle free but also a great money saver technique.
A compulsory excess is an amount that your four wheeler insurance company has decided that you will pay at the time of claim settlement. The amount varies on the basis of cubic capacity of the vehicle. For sub 1500 cc vehicles, it is Rs 1000, for vehicles above 1500CC it is Rs 2000.
