Finances & Money

What are top 5 most popular Unit linked insurance plans

With the introduction of capital gains tax for a long-term period in the field of equity investment, ULIPs have become popular. The investors have gained the option to roam around the capital market with unit linked insurance plan and acquire a high amount of returns after investing. If you are indecisive about which plan will serve you best, you need to go through this list of top 5 Best ULIP plans for investing efficiently.

According to the meaning of unit linked insurance plan, it is a productive financial tool that paves the path for investment chances in the capital market while enabling risk coverage on the insurance. Depending on various purposes the plans are categorized into different sections including health benefits, retirement, children education and wealth collection. Understanding the niche of the investment funds and their benefits on an investor’s life, the popular insurance companies have come up with plans with low charges.

PNB Metlife Mera Wealth Plan

Even though the policy administration expense of this unit linked insurance plan is 5.5%-5.6% per year, this plan has become popular in the market. An individual is likely to benefit out of the wide range of options given by Metlife life insurance unit linked plan.

  •    Receiving maturity in instalments, you can opt for a premium payment term of 5-10 years.
  •    The nominee will be able to deploy the lump sum.
  •    There is an additional loyalty amount from the 6th year for being invested here for a long period.

However, the lack of flexibility like the mixture of term plan and mutual fund along with fewer chances of switching to fund choices during its underperformance may not be preferred by everyone.

WEALTH PLUS Edelweiss-Tokio Life Insurance

In order to make best out of the unit linked insurance plan advantages, the users have shown an inclination this plan that has paid much attention to administration cost and premium allocation charges.

  •    In a unit linked insurance plan, the fund management expense becomes a burden to the policyholder.
  •    Paying for the mortality charges for the life cover is another limitation that the investors face.

Having put extra units at 1% in the beginning 5 years in the form of incentive, the rate will be increased at 5%, 3% and 7% in following years. As per the unit linked insurance plan review, there is no mortality charge associated with age and then the cost ratio becomes 1.14%.

However, if you wish to rely on this unit linked insurance plan for catering to insurance demands, it will be difficult. After paying Rs 5 lakh per year as premium, the life cover has a limit of Rs 50 lakh only.

SBI Life eWealth Insurance

This unit linked insurance plan provides the policyholder with maturity and death benefits along with giving you the excellent chance of increasing wealth. The minimum and maximum duration of the unit linked insurance plan SBI ranges from 10 years to 20 years.

  •    The maturity benefits are considered under the tax benefit 10(10D).
  •    You can opt for unit linked insurance plan returns withdrawal in case of emergency. However, the policy has to be active for 6 years.
  •    More funds are present because there are no premium allocation expenses related to this unit linked insurance plan.

The policy holder needs to be at least 18 years old and maximum 50 years old for enjoying the benefits.

Aviva iGrowth ULIP Plan

It is a non-participating unit linked insurance plan which aids in saving a huge part of the income with ease. The lock-in period is five years and there are 3 policy terms that you can avail as per your requirements. Without facing any medical examination, anyone from 18-50 years can apply for the policy.

  •    Enhancer fund, a bond fund, and balanced fund are the three types of fund options that you can get with this regular premium unit linked insurance plan.
  •    In a policy year, a user can apply for switching between fund options only three times.
  •    The nominee can get 105% of the entire paid premium or the sum assured on the event of the policyholder’s sudden demise.

Rs 35,000 is the lowest annual premium in this unit linked insurance; however, there is no top up available.

CLICK2INVEST HDFC Life Insurance

This one is a unit linked insurance plan with no premium allocation charges and the initiative was taken in 2014 by HDFC. Only paying for the mortality charges, the minimal amount of premium is Rs. 1,000 per month or 12,000 per year.

  •    Unlike other ULIPs in the list, this one does not offer any additional loyalty offers.
  •    This unit linked insurance plan is widely popular in the digital platform and HDFC applies no policy administration charges either.

Only by investing Rs 1 lakh per year and getting 8% of interest rate, within 10 years you can Rs 14.10 lakh of maturity corpus.

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Susan Paige

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