ULIP Plan
- Offer flexibility.
- Offer transparency.
- Encourage goal-based savings.
- Offer tax benefits.
- Offer Liquidity.
features of ULIP
Fund Switch
Fund switching is a part of ULIP where the policyholder gets the liberty to select and invest in the funds of their choice.
Flexible investment options
ULIPs offer a whole host of high, medium and low-risk investment options via different fund available under the same plan.
Disciplined and regular savings
ULIPs help you inculcate a regular saving habit, which goes a long way in building a corpus for future needs.
FAQ About ULIP Plan
Risk factor: Since ULIP investment is not as diversified as compared to ELSS, the risk in ULIP is probably a bit high compared to schemes like ELSS. Investment horizon:ULIPs have a lock-in period of 5 years. If a ULIP is surrendered in the first three years, the insurance cover would cease immediately
You can exit from ULIP after 5 years; however, it is not advisable even after lock-in period ends. To reap the benefits, you should continue and stay invested for a long period say 15-20 years. If you think that the funds are not performing, you may want to go for switching your funds
Surrendering before five years
Even though there is a lock-in period of five years in Ulips, one may still surrender the policy. The money, however, will be paid to the policyholder only after the end of 5 years. Importantly, it’s not the fund value as on the date of surrendering that gets paid after 5 years.
Yes. You can withdraw+ a part of your earnings at any time after the completion of five years. However, the value of withdrawals in a year cannot be more than 20% of the Fund Value. For example, if your fund value is `1,00,000/-, you can withdraw a maximum of `20,000/- in the year.
According to the experts, the ULIP policy surrender amount is taxable; if it is surrendered before the minimum lock-in period of five years, the total surrender value is considered income for the current fiscal year. Therefore, it is added to the total gross income for that fiscal year.
The NAV of a ULIP plan can be calculated by adding up the total ULIP funds on a date and then deducting expenses like operating and management charges from it. The net value is divided by the total number of units to get the NAV.
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Om Sai Enterprises
The company was founded in 2017 with the sole purpose of enabling people to leverage the best financial consultancy and services