What is ULIP in HDFC Bank?

What is ULIP in HDFC Bank?

Helps you plan as per your goal: ULIPs are designed to take care of your future goals like creating wealth, securing your child’s future and planning your retirement. Avail of tax benefits: You get tax advantage on premium payments while growth on investments, debt-equity Switch and maturity benefits are tax-free.

What is unit linked insurance plan?

A unit linked insurance plan is a product that offers a combination of insurance and investment payout. ULIP policyholders must make regular premium payments, which cover both the insurance coverage and the investment. ULIPs are frequently used to provide a range of payouts to their beneficiaries following their death.

How does unit linked insurance work?

A ULIP is both an insurance policy and an investment. The policy specifies a death benefit – the amount the nominee will be paid if the policyholder passes away during the term of the ULIP. In addition, if the policy holder survives the term of the ULIP, he/she can also get the maturity value of the ULIP.

Which is the best ULIP plan?

Best ULIP Plans in India 2021

Plan Names Entry Age Minimum Premium
Bajaj Allianz Future Gain 1 to 60 years Rs. 25,000
Bajaj Goal Assure 0 years (30 days) to 60 years Rs. 3,000 to Rs. 36,000
Birla Sun Life Wealth Assure ULIP Plan 30 days-65 years Rs.1,00,000 per annum
Canara HSBC Grow Smart Plan 7 years-65 years Rs.25,000 per annum

Is ULIP good or bad?

From a ULIP, neither are you getting the best investment and neither you are getting the best insurance coverage. It is a little bit of both. So, you can spend Rs 20,000 for a term insurance plan and the balance of Rs 80,000 in investment. This is just a ballpark figure, it really depends on your age and other factors.

Is ULIP plan good?

ULIPs are best suited for individuals with a long term financial plan of wealth creation and insurance. Whether it is for retirement, children’s education or for other financial goals, a ULIP continued till maturity works as an advantage. It gives you the dual benefit of savings and protection, all in a single plan.

What is difference between ULIP and mutual fund?

A mutual fund is a pure investment product that offers the sole benefit of creating wealth and has potential to generate reasonable returns in the long-term. On the other hand, ULIPs are primarily an insurance product with the added advantage of being a market-linked investment.

Is unit linked product more secure?

It offers security that a taxpayer’s family can fall back on in case of emergencies like the untimely death of the taxpayer, etc. Income tax benefits: Not many are aware that the premium paid towards a ULIP is eligible for a tax deduction under Section 80C.

Is ULIP a good plan?

Why you should not buy ULIP?

The problem with the ULIP is you neither get decent returns nor do you get decent insurance coverage. An investor has the option of choosing where your premium is invested in an ULIP. Your premium can be invested in equity mutual funds, debt mutual funds or a combination of both.

Who should buy ULIP?

Generally, a ULIP has a lock-in period of 5-7 years. This is sufficient time for the money invested in equity or debt funds to multiply considerably. Hence, you should invest in ULIPs as soon as possible. Individuals who have just started their career can begin with a balanced fund option for lower financial risks.