In Unit Linked Insurance Plans(ULIP), the investments made are subject to risks associated with the capital markets.
What is ULIP (Unit Linked Insurance Plan)?
ULIP is a life insurance product, which provides risk cover for the policy holder along with investment options to invest in any number of qualified investments such as stocks, bonds or mutual funds. As a single integrated plan, the investment part and the protection part can be managed according to specific needs and choices.
In Unit Linked Insurance Plans(ULIP), the investments made are subject to risks associated with the capital markets. This investment risk in investment portfolio is borne by the policy holder. Thus, you should make your investment choice after considering your risk appetite and needs.
Another factor that you need to consider is your future need for funds. HDFC Standard Life offers you a variety of unit-linked insurance products to suit your goals - be it for your retirement planning, for your health, for your child's education and marriage or for investment purposes.
Which Investor Class Are They Most Suited For?
How Is It Structured?In a Unit Linked Plan (ULIP), the premiums you pay are invested in the funds chosen by you after deducting allocation charges and charges including those for managing funds, policy administration and for providing insurance cover are deducted from the funds by cancelling certain units.
The value of each unit of a fund is determined by dividing the total value of the fund's investments by the total number of units.
Advantages Of A Unit Linked Plan?
Servicing A Unit Linked Plan
ChargesThe following charges are deducted from your policy towards the cost of benefits and administration services provided by HDFC Standard Life Insurance -
Switching Between FundsHDFC Standard Life Insurance offers you the flexibility to switch between funds available under a unit linked plan.
You may wish to switch between equity and debt funds, in times when there is market volatility or interest rate fluctuations. At times, changes in your financial standing, liabilities or risk profile may also require that you change your investments accordingly.
You may also make partial withdrawals from your funds after a certain specified period, subject to a partial withdrawal charge. The withdrawal amount should be at least the minimum prescribed withdrawal amount and the fund must not fall below the minimum fund value after the withdrawal.
You can make a full withdrawal of your policy before its maturity date. However, surrender charges will be applicable in this case.
ULIPs from HDFC Life
Having known the various advantages that ULIP offers, it is advisable to choose the right plan depending on your age group and the corresponding goals at various life stages.
HDFC Life offers different ULIPs which are just right for you and can help you meet your specific financial objectives.