If you are looking for sensible tips to invest in a Unit Linked Insurance Plans (ULIP), good that you have landed on the right page now. With ULIP, you can get the safety and protection of having insurance, while also creating ample wealth in terms of profit. ULIP is the best choice in its way, as you can get life cover policy as a part of your ULIP plan, while the rest is invested in equity and debt.
1. Risk Portfolio
There is a high-risk, medium-risk and low-risk profile in ULIP plan, which can be simply defined as high-risk is more of equity and less debt, while the low-risk is a vice versa and the medium-risk is the balance of both. Be wise in choosing the risk portfolio while investing in ULIP, as every investment is subject to market risk and your intelligence in choosing the fund is the key to multiply your profit.
2. Monitoring Funds
ULIP plan has a 3 year locking period, so when you are investing the amount; make sure that you can let free the amount for the 5 years as you can take the amount only after 5 years. You have to invest once a year, at least for 3 years.
3. Structured Plan
ULIP is a structured insurance plan that is best suitable for medium or preferably long term investors. There includes allocation charges and fund management charges, excluding the amounts of which the remaining will be invested in the debt/equity that you wisely choose.
ULIPs are insurance cum investment plan that is linked with the share market, so when the market is increasing high, your ULIP plan is sure to bring good returns to you. This is a good choice for investors because ULIP is one right plan that gives you the choice to swap between different funds, based on their performance track.
Additional Reading: Why One Should Not Exit ULIP as soon as the Lock-in Period Ends
So if you are looking for a solution that can give you investment, savings and life cover insurance, ULIP is the right choice for you. Go for it, Gain from it !!