RESUME APPLICATION PAY PREMIUM
Fund Performance

Fund Performance

Knowledge Center

Knowledge Center

About Us

About Us

Tools and Calculators

Tools & Calculators

Quick links

Mobile (Download app)
  • Webpages
  • Documents
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment
  • HDFC Life ClassicAssure PlusInvestment

For NRI Customers

(To Buy a Policy)

(If you're our existing customer)

For Online Policy Purchase

(New and Ongoing Applications)

Branch Locator

For Existing Customers

(Issued Policy)

Fund Performance Check

RESUME APPLICATION PAY PREMIUM

What do you want to do?

Quick links

Mobile (Download app)

Download HDFC Life App

Buy plans, track your policy, make renewal payments & monitor fund performance with HDFC Life App, Download Now!

Apple Logo Go to Google Play Store

ULIP Terms You Should Be Familiar With

down-arrow
ULIP Terms You Should Be Familiar With
December 27, 2018
ULIPs have emerged as one of the best and extensively enriching investment options these days. ULIPs are Unit Linked Insurance Plans that serve as joint instruments for insurance coverage and investment through a variety of fund options. ULIPs come with a lock-in period of 5 years and therefore, enable financial discipline through regular investments which makes them ideal for long term financial goals. ULIPs also have the feature of permissible switches between various fund options that makes them very flexible and the subscriber gets to choose the fun option as per her/his risk appetite. Besides, investments in a ULIP come with tax benefits under Sections 80C and 10D of the Income Tax Act, 1961 and are also exempt from LTCG taxation. Thus, ULIPs offer tax savings together with the insurance coverage and returns on investment.

However, before purchasing a ULIP, you must have coherent knowledge about the various terms involved. Having this knowledge allows you to take an informed decision at the time of policy purchase. Here is a list of certain important terms in ULIPs:

  1. Fund Value:

    Fund value denotes the value of investment fund options in terms of units.

  2. Sum Assured:

    This is the main fund corpus i.e. the amount of guaranteed fund entitlement (payable to the nominee(s) or to the policy holder).

  3. Withdrawal (partial):

    As the name implies, a partial withdrawal is the amount withdrawn by the policy subscriber before the maturity of the policy term.

  4. Fund Switch:

    This is a feature of ULIPs that allows the policy holder to switch between various given fund options. The number of free switches is capped at an upper limit that varies from one insurer to another.

  5. Top-up Premium:

    The additional amount paid (along with the payable premiums) for addition to the main fund corpus is called top-up premium.

  6. Contract:

    This is the policy document to which the policy holder and the insurer are two parties, in mutual agreement.

  7. Single-premium contract:

    A ULIP which is made functional by a single, lump-sum payment of the payable premium.

  8. Regular- premium contract:

    A ULIP which is made functional by periodic payments towards the policy premium, at a decided frequency.

  9. Contract Surrender:

    This means surrendering i.e. irrevocably exiting the contract terms before the maturity of the policy term.

  10. Surrender value:

    The amount payable by the policy holder in the event of contract or policy surrender.

  11. Maturity benefits:

    The funds that are payable by the insurer in the event of completion of the policy term.

  12. Death benefit:

    This is the total fund that is payable by the insurer in the event of the policy holder's demise during term of the policy.

  13. Survival benefit:

    The periodic funds that are payable by the insurer during the duration of the policy term, in the mentioned frequencies and conditions.

  14. ULIP Charges:

    These are the charges that are levied by the insurer in the form of fund management charges, premium allocation charges, mortality charges, policy administration charges etc.

HDFC Life offers HDFC Life Click 2 Invest ULIP- an online market linked plan that has been formulated for your total financial coverage and ensuring beneficial returns on the investment. For details, click on the mentioned link: https://www.hdfclife.com/savings-plans /click-2-invest-ulip-plan.

Buy ULIP Plans

Related Articles

Show Full Article
Hide Full Article

ARN: EC/06/2017/9792

Term Plan Articles Term Plan Articles

Investment Articles Investment Articles

Savings Articles Savings Articles

Life Insurance Articles Life Insurance Articles

Tax Articles Tax Articles

Retirement Articles Retirement Articles

ULIP Articles ULIP Articles

Health Plans Articles Health Plans Articles

Child Plans Articles Child Plans Articles

Popular Calculators Popular Calculators

Insurance Advisor Articles Insurance Advisor Articles

Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

LinkedIn profile
Author Profile Written By:

Here's all you should know about life insurance.

We help you to make informed insurance decisions for a lifetime.

The ₹1.2 Crore Question: Is Your Financial Plan as Strong as Your Dream Home?

The ₹1.2 Crore Question: Is Your Financial Plan as Strong as Your Dream Home?

Financial Plan as Strong as Your Dream Home: Ensure your family's security with a solid plan, including life insurance, savings, and investments for future growth.

Feeling Stuck in Life & Money? The Power of Doing Less Could Mean Doing More

Why Your Savings Strategy Needs an Upgrade (Hint: It’s Not Just About Returns)

Savings Bank Account vs Insurance Plans: Why You Need Both in Your Portfolio

Learn importance of savings bank accounts and insurance plans in a financial portfolio, as they help protect assets and grow wealth through security and planning.

Savings Bank Account vs Insurance Plans: Why You Need Both in Your Portfolio
ELSS and ULIP - Detailed Comparison Previous
Impact of LTCG on ULIP plan Next
HDFC life
HDFC life

HDFC Life

Reviewed by Life Insurance Experts

HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER

We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

Popular Search

Popular Searches