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    Know All About Unit Linked Insurance Plan

    Last Updated On 28-06-2021

    In this Policy, the Investment Risk in investment portfolio is borne by the Policyholder The linked insurance products do not offer any liquidity during first five years of the contract. The policyholder will not be able to surrender/ withdraw the monies invested in linked insurance products completely or partially till the end of fifth Year

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    A ULIP is a combination of investment in equities/debt/balanced funds and insurance. The premium you pay towards a ULIP is divided, with one part going towards your insurance and the other getting invested. You can also choose to pay the premium monthly or annually, as per your convenience.

    Now that you know the unit-linked insurance plan and its meaning, read on to know if it is an ideal investment for your needs.

    Benefits of investing in a ULIP plan:

    • Provides life cover:
      ULIP provides life insurance to you and your loved ones in case of a medical emergency. Not only does this benefit give you peace of mind, but it also inculcates a habit of saving for a rainy day.
    • Higher Risk with probability of high returns on your investment:
      Since a part of your premium is directed to market-linked returns, the investment allows you a chance to earn higher returns with high risk, if compared to more traditional investment avenues. To add to the benefit, in the long run, ULIPs are known to provide double-digit returns to you.
    • Flexibility to switch funds:
      ULIP enables you to switch between funds during the policy tenure. Depending on the performance, you can move your funds between equity, balance, and debt funds, based on the market performance and your financial goals and this can yield better results for your investment.
    • Tax-benefits:
      Since ULIPs provide life cover to you as an investment option, it is listed under Section 80C of the Income Tax Act, providing you tax benefits. This benefit lowers your taxable income, thus saving your money.
    • Ideal for first-time investors:
      If you are a first-time investor or moving from traditional investment schemes to market-linked investment schemes, a ULIP can be the ideal stepping stone. ULIPs provide you with the flexibility to spread your investment across diverse fund types and move your funds when in doubt. To top it off, you can choose your portfolio based on the level of comfort you feel towards market-related risk, while enjoying the benefits of a life insurance cover.

    How to choose the best unit-linked insurance plan?

    The Insurance Regulatory and Development Authority of India (IRDAI) brought about a change in ULIPs in 2010 to increase the lock-in period from 3 years to 5 years. While this itself was seen as a huge commitment by many, financial advisors suggest that you should hold on to an investment for at least 10-15 years to enjoy all its benefits.

    Since it is a lasting investment, you can consider the below-mentioned points to choose the best ULIP investment.

    • Personal financial goals:
      You can choose a ULIP that suits your needs and risk appetite, depending on whether you want to generate money to buy a home, pay for a child’s education, or save for your retirement fund.
    • Compare ULIP offerings:
      After deciding the purpose of investing in a ULIP and determining which type of ULIP will help you achieve your financial goals, compare the different ULIP offerings in the market. Take into consideration factors such as premium payments, ULIP performance, etc.
    • Consider the degree of risk:
      Everybody's appetite for risk varies, which is why you must take into account the risk factor ULIPs carry since it is a market-linked investment. You can opt for funds that would not be as volatile as the others when choosing a ULIP if you are averse to risk.
    • Investment horizon:
      Even the best unit-linked insurance plan in India is pointless if you surrender it in the first three years, as the insurance cover would cease immediately. For this very reason, it is vital that you be certain of your investment choice and be aware of the charges levied on the entry and exit of the policy.

    In the end, choosing a unit-linked insurance plan can prove to be beneficial as it would provide an insurance coverage while safeguarding your future financial requirements.

    Know more about term plan, term insurance and life insurance at PNB MetLife.

     

    Disclaimer:

    The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.

    PNB MetLife India Insurance Company Limited
    Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
    IRDAI Registration number 117 | CIN U66010KA2001PLC028883
    For more details on risk factors, please read the sales brochure and the terms and conditions of the policy, carefully before concluding the sale.
    Goods and Services Tax (GST) shall be levied as per prevailing tax laws which are subject to change from time to time.
    The marks "PNB" and "MetLife" are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
    Call us Toll-free at 1-800-425-6969, Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203.

    AD-F/2021-22/189

    Beware of Spurious Phone Calls and Fictitious / Fraudulent Offers!
    IRDAI is not involved in activities like selling insurance policies, announcing bonus or investments of premium. Public receiving such phone calls are requested to lodge a police complaint.

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    Disclaimer:
    The aforesaid article presents the view or an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ before making any decision.

    PNB MetLife India Insurance Company Limited, Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka.
    IRDAI Registration Number 117. CI No: U66010KA2001PLC028883. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding the sale.
    The marks “PNB” and “MetLife” are registered trademarks of Punjab National Bank and Metropolitan Life Insurance Company, respectively. PNB MetLife India Insurance Company Limited is a licensed user of these marks.
    Call us Toll-free at 1-800-425-6969. Phone: 080-66006969, Website: www.pnbmetlife.com, Email: indiaservice@pnbmetlife.co.in or Write to us: 1st Floor, Techniplex -1, Techniplex Complex, Off Veer Savarkar Flyover, Goregaon (West), Mumbai – 400062, Maharashtra. Phone: +91-22-41790000, Fax: +91-22-41790203
    EC342 LD/2019-20/358

    BEWARE OF SPURIOUS/FRAUD PHONE CALLS!
    • IRDAI is not involved in activities like selling policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

    Disclaimer

    Collapsed Expanded

    As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at claimshelpdesk@pnbmetlife.com or indiaservice@pnbmetlife.co.in. You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.

    PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance PlansTerm PlanProtection PlansLong Term Savings Plans , Retirement Plans & Child Education Plan.

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