Human lives are uncertain; you don’t know what might happen the very next moment. Hence, it is important to keep our interests secured when things are in our hand. Insurance policies are the best means to protect our financial interests when and where the need arises. While insurance policies only provide you with the benefit of protection, there’s something that can protect and promote savings at the same time. 

Unit Linked Insurance Plan is a form of insurance plan that not only protects you but also encourage savings as well. One of the significant advantages of Unit Linked Insurance Plan that sets it apart from the rest of the traditional insurance and wealth tools is the advantage of life cover. With ULIP, you can expand your money along with securing the future of your loved ones. 

How To Find The Best ULIP?

There’s no doubt in asserting that ULIP is an investment and insurance plan. Hence, it becomes highly necessary to find the best policy that will provide you with the best benefits. Below are some factors to be considered while choosing the ideal ULIP:-

• Claim Settlement Ratio

Claims are highly important factors in an insurance plan and a Unit Linked Insurance Plan. Claim settlement ratio is the percentage of claims paid out by the company. The higher the ratio, the better the choice.

• Solvency Ration

Solvency ratio depicts whether the company will be able to fulfil the claims in the future as well. The ideal rate set by IRDA is 1:5. Here also, you should go for higher ratios. 

• ULIP Funds Performance

Along with insurance products, ULIPs are also investment instruments. Hence, it becomes essential to gauge the performance of ULIP funds’ performance over a period of time. ULIP have both equity balanced and debt funds. Equity funds have high returns with high risk, and debt funds have lower returns with lower risks. 

• Charges

ULIP entails charges like premium allocation charge, policy administration charge. Mortality charge, discontinued premium charge, policy administration charge, fund management fee, etc. 

• Investment Strategies

There are plenty of ULIP that provide investment strategies like Systematic Transfer Plans. Search for plans that best suit your goals. 

The Bottom Line

There are plenty of ways today in which you can save your money by making investments and protect your financial interests. But, ULIP, Unit Linked Insurance Plan is the only way through which you can do both. It is a form of insurance plan that also entails savings. From the benefits of regular savings to the advantage of life cover, ULIP is undoubtedly the best financial tool that you can opt for. 

Today, a majority of all the reputed banks and financial institutions provide the Unit Linked Insurance Plan. With such a huge number of companies providing plans, it becomes important to get hands-on the ideal plan that can serve you the best benefits. 

The above mentioned were some of the factors that you should consider while choosing for a ULIP. Make sure to adhere to these points whenever you are looking for a Unit Linked Insurance Plan.