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Unit Linked Insurance Plans - All you need to know


Investing in securities accrues double the benefits with Unit Linked Insurance. We analyse the benefits of this investment instrument.

In today's fast paced world, life changes in an instant. Where we may be healthy and happy one moment, the next moment can bring an irreversible change in our lives. Also, rising costs of living and inflation serve to take away a significant chunk of our income. This reduces the chances we may have of making investments and saving more money.

However, there is always a way to maximise one's earnings and make significant earnings through investments. We are referring to a useful investment instrument known as Unit Linked Insurance Policy (ULIP).

What are ULIPs?
ULIPs are investment options that offer the dual benefits of insurance with investment. These insurance plans are linked to the stock market and the premiums are paid in two components: one part pays the insurance premium, and the other part is invested in equity shares on the policy holder's behalf. The second component helps the insurer allot share scheme units to the policy holder. Every allotted unit has a specific value that changes daily based on market trends per business day.

ULIP plans help investors create a sound wealth corpus for the future. Also, the policy holder may choose the shares he or she wishes to invest in. This helps the policy holder exercise control over how much the eventual earning on the unit will be.
 
The ABSLI ULIP advantage:
Aditya Birla Sun Life Insurance has five excellent ULIP plans to choose from. These help investors grow their wealth while also staying protected through insurance. The ULIP policies provide significant wealth since the investment is essentially a long term one.
 
 
ABSLI Max Wealth Plan:
This is a one-time payment unit linked plan with the chance to top up the investment with additional savings. In case the investor requires funds in a hurry, the plan lets a partial withdrawal of funds. The sum assured ranges from 1.25 to 10 times the premium amount.
 
ABSLI Wealth Aspire Plan:
This is one the best ULIP plans, offering four investment options: Smart Option, Systematic Transfer Option, Return Optimiser Option, Self-Managed Option. The premium paying terms range from 5 to 40 years and the investor can top up the initial investment with more funds at a later date.
 
ABSLI Wealth Secure Plan:
This is an excellent unit linked plan that provides coverage to the entire family, as well as offers tax benefits under Sec 80C and 10(10D) of the Income Tax Act, 1961. It is a unique savings plan that provides lifetime coverage with premiums that range from Rs 20,000 (annually), Rs 30,000 (six-monthly) or Rs 60,000 (monthly or quarterly).
 
ABSLI Wealth Assure Plan:
This is a protection and savings ULIP plan that offers three investment options: Lifecycle option, Systematic Transfer Option and Self-Managed Option. It allows investors the chance to top up the initial investment with additional funds at a later date.
 
ABSLI Fortune Elite Plan:
This unit linked plan offers three investment options: Systematic Transfer Option, Return Optimiser Option and Self-Managed Option. It is one of the best ULIP plans that provide high returns on initial investment.