How to Choose the Best ULIP for Investment & Insurance?

2024-10-11

2280 Views

8 minutes read

Locate branch

Resume journey

Pay Premium

Live Life More Confidently

Get best insurance from our experts

Name is required Name should be Valid

Mobile Number is required Mobile Number should be Valid

Email is required Email should be Valid

DOB is required DOB should be Valid

Annual Income*

< 3 3-5 5-7 7-10 > 10

Annual Income is required

I agree that even if my contact number is registered with NDNC / NCPR, I would still want the Company to contact me on the given number and email id for the clarifications/product information sought by me and agree that I have read and understood the Privacy Policy and agree to abide by the same.

Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

Unit Linked Insurance Plans are one of the most popular investment options. They offer a variety of benefits like investment, insurance, and tax-saving at the same time. There is a variety of ULIPs available in the market. In order to know how to choose the best ulip for yourself, here are a few things to keep in mind

Get a Personalised ULIP Plan for Wealth Creation & Protection

Full Name* Please enter correct name Please enter the Full name

Mobile Number* Please enter valid mobile number Please enter Mobile Number

Email* Please enter valid email Please enter Email

...Read more Consent is required

Investment options

A ULIP invests across debt and equity. Usually, a ULIP offers fund options that you can choose from. You should always go for a plan that offers maximum choice in this regard so that you have the freedom to customize as per your financial goals.

For example, Canara HSBC Life Insurance offers 7 different fund options- Emerging Leaders Equity Fund, Equity II Fund, India Multi-Cap Equity Fund,Balanced Plus Fund, Growth Plus Fund,Liquid Fund, Debt Fund. You can choose to invest in any, all, or a combination of funds from amongst these. This also comes with a choice of 4 different portfolio management strategies- Systematic Transfer Option (STO), Auto Funds Rebalancing (AFR), Return Protector Option (RPO), and Safety Switch Option (SSO)

Online management: Many plans can now be purchased and managed online. Opt for a ULIP that allows you to save time, manage your investment conveniently, and eliminate agent charges. An online plan will also offer the option of auto-deduction of premiums from your bank account so you need not worry about that either.
Charge structure: There are plenty of charges associated with a ULIP such as premium allocation charges, surrender charges, mortality charges, etc. When a considerable part of your premium is spent on these charges, you are left with less money to actually invest. Go for a plan with minimum charges.
Flexibility: A ULIP can also offer you flexibility in aspects beyond fund selection. Go for a fund that gives you different premium payment options i.e. monthly, quarterly, half-yearly, and yearly.

Canara HSBC Life Insurance offers these options, along with three plan options to choose from: life option, life options with PFB, and whole-of-life option. It offers added flexibility through a settlement option. You can choose to receive maturity benefits in instalments at a frequency chosen by you, over a maximum period of 5 years. You can also opt for complete withdrawal of Fund Value at any time during this period. This plan also offers switching and redirection between fund options, and partial withdrawals to meet contingencies.
Life cover: While thinking about how to choose the best ULIP, you must not forget that a ULIP is basically an insurance plan with an investment component. It allows a minimum life cover of 10 times the annual premium. For example, if you have an annual premium of Rs.1 lakh, your minimum possible cover would be Rs.10 lakhs. Different plans offer different options in this regard as well, such as fund value, or a percentage of the premiums paid till death of the policyholder.
Define life goals: Any investment, be it a ULIP or other insurance product, should be made keeping your financial goals and dreams in mind. These could be anything from taking an international trip to being ready to pay for your child's higher education on time. The amount required to fulfil your specific financial goal and the time in which you want to achieve it should all be taken into account while deciding on your investment horizon and fund allocations.
Risk appetite: Your risk appetite should depend on your income, age, the dependents in your family, medical conditions in the family, etc. Usually, you can take greater risks when you are younger. If you are ready to do so, you can opt for a higher equity investment as it could give higher returns. If you want to stay safe, consider a debt-oriented investment. You could also consider a balanced fund as a starting point.
Research and compare: Research is always important before investing. Check the historical NAV (Net Asset Value) of the fund you are considering and evaluate its performance. Although the past performance does not necessarily signify future performance, it could help you set expectations for the fund. Run a background check of the insurer as well. See if they have a good solvency and claim settlement ratio so that you know that your money is in good hands.

These are the basics to keep in mind when considering how to choose the best ULIP. There is always scope for further reading and research, so ensure that homework is thorough before making an investment.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.

How Can ULIPs Help You Catch Up on Wealth Goals in India?

How to Plan Retirement with a ULIP Investment Plan?

Unit Linked Insurance Plans - Top Selling Plans

Canara HSBC Life Insurance offers online ULIP plans that blend life insurance protection with investment growth, helping you build wealth while securing your family's future.