plan in the easy steps

How to choose the best ULIP plan in the easy steps?


A ULIP (Unit Linked Insurance Plan) is an investment plan in which the life insurance policy serves the purpose of life insurance and investment both in a single plan.

At the time when the share market and mutual funds were dominating the investment portfolio, unit-linked insurance plans were started by the insurance providers to attract more customers towards the high returns on the investment. Now, the ULIP plans are one of the popular investment products that are offered by insurance companies to investors.

In this article, we are going to tell you everything about the ULIP polic and how it helps investors meet their financial goals.

Things you should consider while choosing the best ULIP plan

Here we have mentioned some things below that you must consider if you really want to buy the best ULIP plan.

1. Selection of the ULIP fund options

ULIP plans offers the option to invest in equity funds, debt funds, and a mixture of both. Equity funds give long-term and high growth potential, whereas debt funds work to save your wealth. So first, select the option to invest in either equity or debt funds, according to your risk appetite and goal.

2. Opt for the necessary amount in life insurance cover

ULIP plan helps the investors to fulfill their long-term financial goals such as marriage, the higher education of their children, etc. Also, they give financial cover to the dependents if any demise is caused to the policyholder. So, it is suggested to choose the right amount of insurance cover, by keeping all needs for the future.

3. Investment with the long-term ULIP

After considering the amount in the life insurance cover, the ULIP plan also helps in wealth creation, similar to the wealth insurance plan. In this way, they help us to achieve our financial goals.

4. Know the ULIP charges

Here, you have knowledge of the four charges related to the ULIP plan, such as the policy administration charges, premium allocation charges, fund management charges, and mortality charges.

5. Check the tax benefits. 

According to the income tax act, the ULIP plan also offers tax-saving benefits. Further, take a look at the tax benefits that you will get with the ULIP plans.

  • Entry benefits: You can get entry tax benefits on the premium payment.
  • Earning benefits: The money that you earn, or grow is not taxable.
  • Switching benefits: You can easily make the switches between the debt and the equity funds without paying any amount as tax.
  • Exit benefits: You can also avail of the tax benefits on the maturity amount.

6. Check the ULIP features. 

The final thing you have to consider while choosing the ULIP plan is its features. Here you have to check the features of the ULIP plan, such as the redirection of premium, fund switches, Top Ups, partial withdrawals, etc.


This article consists of information on the ULIP plans. Here we highlight the things that you should consider while choosing the best ULIP plans.


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