How To Get The Most From Unit-Linked Insurance Plans For Long Term Goals

When you are interested in saving for long term goals and also want life insurance coverage in a single plan, Unitlinked insurance plan (Ulip) suits to meet such a financial need.

From the premium that you pay in Ulip, some portion goes towards the savings while the other portion goes towards life protection including the policy costs. You essentially get a single plan that takes care of your savings and insurance needs. Ulip, an insurance product that bundles protection and savings has undergone several structural changes of late. Unlike in the past, where premiums could have been discontinued after a certain period, say 3 or 5 years, the current version requires premiums to be paid till maturity, unless you choose a limited premium payment period. Hence, saving through Ulips becomes a forced savings and requires payments each year for the policy to continue. Also, unlike in the past, now the majority of charges have become standardized and mostly spread over the first five years of the policy.

Ulips are for long term goals