What is ULIP Plan and How Does it Work?

What Is ULIP?

How Does ULIP Work?

How to Invest in a ULIP?

What Are the Features of a ULIP?

FAQs About What Is ULIP and How Does ULIP Work?

How much tax benefit can I get on the ULIP? up-arrow

You can get a tax deduction for up to ₹1.5 Lakh under Section 80C of the Income Tax of India. Furthermore, Section 10(10D) allows the death benefit to be completely free from tax obligations.

How can I switch my fund type in ULIP? up-arrow

You need to check whether your insurance provider gives the online self-service facility to modify the fund type. If it does, you need to visit the portal of your insurance company to request to change your asset allocation type. Else, you will have to visit the physical office of your insurer for the same.

Which factors do I need to see before selecting a ULIP? up-arrow

Here are some of the aspects you need to consider while choosing a ULIP:

  • Maximum sum assured
  • Charges for the ULIP (riders/policy administration/premium allocation fees)
  • Type of funds
  • Lock-in period
  • Premium amount

What is the maximum death benefit in ULIP? up-arrow

Upon the death of the policyholder, his/her family members can get any of the following amount which is the highest at the time of claiming:

  • The sum assured amount
  • 105% of the total premium policyholders pay
  • Present value of the fund at present