Switch Investment Mix with ULIP

Here is a list of key pointers regarding the switch-fund option in ULIPs:

1. Switching funds in an existing ULIP is a very beneficial feature as it gives you the desired safety against fluctuations in fund performances as per the market conditions. Once you invest in a fund, the performance and the resulting dividends from it may not remain stable and may vary as per the market. This feature therefore acts as a market-leveraging factor and helps you in making optimum gains.
2. This feature is provided free of any cost etc. by various insurers up to a certain number. This number varies from one insurer to another. Some insurers provide a limit of about 10-12 free switches while others may provide even 20-22 free switches. This entitles the policy subscriber to switch between funds up to the stated number of times. However, once this capping is crossed, a fee (fund-switching fee) is levied.
3. When you switch funds, the overall impact that it has on your insurance cover differs from one plan type to another. For instance, if your plan entitles you to receive separate monies against the insurance part and the investment core, then switching between funds has no actual impact on the overall insurance segment as the insurance payout is not impacted by any changes in investment options. However, this does not hold true when the entitlement is for the insurance corpus (sum assured) or the value of an investment fund.
4. The process for switching is also easy. There is the offline option - where the subscriber just has to fill in the application for the fund transfer and then visit the insurance provider's nearest branch. The details like the value to be switched, the preference of the new fund option etc. must be mentioned. Alternately, there is the online option, where the subscriber has to register on the insurance provider's official web portal, log in and then apply for the fund  switch from the list of given options.

HDFC Life offers HDFC Life Click 2 Invest ULIP - a market linked insurance plan that comes with minimal charges and is best suited for your investment needs. For details, click on the mentioned link: https://www.hdfclife.com/savings-plans /click-2-invest-ulip-plan.

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