A Unit Linked Insurance Plan (ULIP) is a dynamic financial tool that offers multiple benefits to investors. The plan offers life protection that secures your loved ones in your absence. It also lets you grow your money over time and earn more returns. ULIP can be used for a number of goals like a home purchase, travel, higher education, marriage, and even retirement.
 

ULIPs have a number of fund options that can be used to multiply your money as per your risk appetite. In the last decade, ULIP plans in India have seen many changes. New age ULIPs have taken over the market with advanced features, easier processes, and better customer experiences. ULIP plans are now one of the most preferred investment options in the market that have helped many Indians fulfil their financial dreams and goals.
 

Read on to know how new-age ULIPs are a great addition to your portfolio and why you should be investing in them as soon as possible.
 

Benefits of new-age ULIP plans

If you analyze plans that are traditional vs ULIP nowadays, new age ULIP policies definitely win the race with the following benefits:

1. They can be bought directly from the insurance company: One of the greatest drawbacks of traditional ULIP plans was the involvement of insurance agents and distributors. Not only did these agents charge a high service fee, but they were also biased towards products that could fetch them a higher commission. Their focus was often on their own growth rather than catering to the customer’s needs. However, new-age ULIPs can be bought online without any middle-person. You can simply visit the website of the insurance company, browse through different plans, talk to the customer care executives, and pick a plan that you find suitable for your goals. The application form, KYC formalities, premium payment,, can all be filled and completed online from the comfort of your home.
   
   
2. They offer multiple fund options: New age plans offer multiple fund options that are suitable for all risk types.
   
   
3. They let you switch between funds: Not only do new-age plans offer several fund options, but they also let you switch between funds as many times as you want. This allows you to earn more returns avoid volatility. You can take advantage of market opportunities and substantially grow your money. You can also adjust your investment as per your changing life stages and needs. For instance, a lot of people invest in equity funds when they are young but prefer moving to debt funds as they get older and approach retirement.
   
   
4. They offer enhanced sum assured: New age ULIP plans are a great life insurance tool. You can pick an enhanced sum assured amount based on your family’s requirements and secure them financially in your absence. You can opt for lifelong protection till the age of 100 and get a sum assured that is up to ten times the annual premium of your policy. This ensures that your loved ones always have a safety cushion to fall back on. Moreover, more sum assured amounts are effective to beat inflation too.
   
   
5. They have low charges: ULIPs, these days, have no hidden charges, unlike before. Traditional ULIP plans charged more fund management fees, policy administration charges, surrender charges, fund switching charges, mortality charges, and more. However, new-age plans charge minimal fees. Switching charges have almost entirely been waived off by most insurance companies, and you get better value for your invested capital than you did before.
   
   
6. They are flexible: ULIP plans in India now let you pick the premium payment method. You can choose to pay the premium annually, semi-annually, quarterly, or monthly. Moreover, you can add riders^# like waiver of premium rider^#, comprehensive health rider^#, accidental death rider^#, and more to enhance your plan’s coverage.
    

To sum it up

A ULIP policy is a great investment option in today’s times. The new rules and regulations have made ULIPs much more flexible and transparent. You can manage your plan online from the comfort of your home and can contact the insurance company directly in case of any queries or issues. The various fund options let you multiply your money over time.
 

Moreover, the lock-in period of 5 years inculcates better financial discipline and helps you stay focused on your goals. ULIP plans also offer tax* benefits under Section 80C and Section 10 (10)D of the Income Tax Act, 1961 to further strengthen your savings. So, go ahead and take advantage of these financial tools and their many benefits!
 

L&C/Advt/2023/Jan/0312