Unit linked insurance plans offer the benefits of investment and insurance both. The amount paid up as a premium for these policies is divided into two parts. One portion is considered as Life insurance risk premium and other part is invested in funds and other schemes. If you ask few questions to yourself before purchasing any plan, it will surely give a clear idea of what you should expect.
Feature of Life Coverage
ULIP products serve your insurance and investment needs. So, avoid buying a policy just for the sake of investment. While buying this insurance, ask your insurance service provider about the life coverage it offers.
When customers know about the importance of life coverage, they can align it with their financial objectives and if they fulfill it, they can purchase the policy. This is the best possible way to buy the best ULIP plan online.
Any Charges to Pay
Do not hesitate to ask about the charges which will come along with policy servicing. ULIP holders may have to pay certain charges, including mortality charge, fund management charge, and surrender charge, policy administration charge and switching charge.
If you ask your insurance service provider about these charges, you will definitely come to know about how much amount you will be paying for the policy servicing. Do not forget to know whether these charges are one-time or recurring to get a clear idea.
Available Investment Options
ULIP invests in hybrid, debt and equity funds. Customers have the option of selecting as to where their money gets invested. It can be a combination of funds or a one particular fund.
Buyers’ selection should be depending on their ability to handle risks, their expectations and their needs. Insurance experts suggest customers to understand the mandate of each available fund and then select accordingly.