ULIP plans offer the flexibility of market linked returns on your investments and life insurance cover for you and your family.
https://www.bajajallianzlife.com/ulip/ulip.jsp
3. • From being once the most sought out investment products to the
most hated, ULIPs or Unit Linked insurance plans have completed a
full cycle. Now with a string of reformatory measures introduced by
insurance watchdog IRDA, ULIPS are trying to make a successful
comeback in the financial mainstream offering policyholders the
multiple advantages of investing in equity markets for wealth
creation as well as offering life protection.
• The high charges levied by insurance companies in the first phase of
ULIPs made way for rampant mis-selling by distributors and
insurance agents, and ULIPS became a “tread with caution”
product. Now with the Insurance Regulatory and Development
Authority capping the annualized charges of ULIPS at 2.25% for the
first 10 years of holding, the second innings of ULIPs are likely to be
more eventful and positive both for insurance companies and
investors.
• Introduction of reforms to make ULIPs more customer
friendly
• The first major reform in the ULIP segment was introduction of a
cap on charges and commissions which were not allowed to be front
loaded but evenly distributed throughout the tenure of the policy.
4. • Impact of new ULIP Reforms
• As a result of the new ULIP reforms, all unit linked insurance plans
introduced recently have been offering better avenues of growth by
balancing both protective cover as well as wealth creation for the
policyholder. While fundamentally ULIPs remain a long term
investment product, the increase in lock in period has helped since
all upfront charges get evenly distributed over the five year lock in
period.
• Another advantage offered by new ULIPs compared to the pre 2010
ULIPs is the reduced cost structure effectively allowing a large
chunk of the first year’s premium to be invested in the equity
markets allowing the money to grow from the initial period itself.
• Upcoming ULIP Plans
• The new reforms have brought ULIP back into the financial
mainstream with insurance companies with new plans that offer
both protection and wealth creation benefits. Some of the popular
insurance companies have introduced new ULIP plans or have
announced their plans to initiate ULIP funds in the near future. Two
of the most eagerly awaited unit liked insurance plans are as listed
below.