Things to Remember Before

Buying ULIP
ULIP is a four-letter word that is making a buzz among
the investors.

Compared to old ULIP, the new ULIP has a very low cost
and leaves a lot of benefits for the buyers.

If we investigate the statistics, ULIP have contributed to

12% annualized returns in the last 5 years.

One can easily buy it and it can be accessed online.

All these features have made this product attractive

and user friendly.
1 Check the reputation of company that
is offering ULIP
One of the important factors to check in Unit Linked Insurance Plans is the financial health of the brand.

In insurance terminology, it is measured in terms of solvency ratio and it indicates whether the company
has sufficient liabilities to meet in case emergency arises.

The insurance regulator IRDA suggests that the solvency ratio should be at least 150% and the higher ratio
vouches for the superior health of insurance company.

Also, it predicts a quick claim, settlement process, which can also be measured in the settlement ratio.

A simple Google search on these factors can help you to find the best ULIP plan.
2 Professional Staff
Another factor that you should look before purchasing Unit Linked Insurance plan is the kind of people that
you are going to work with.

A professional company is backed by expert staff who provides the right ULIP plan to the investor.

An experienced investor might have seen the different market cycles and will be in a better position to
market the products.

The tenure, stability of team and customer delight is other factors to investigate.
3 Price of the product
Price is an important factor to consider before purchasing ULIP plans in India.

ULIP come with several charges like premium allocation, fund management cost and policy related cost.

Contrary to popular perception that ULIP’s are costly, now in the present time ULIP is costly and is a value
packed proposition.
4 Risk
Next, the customers need to investigate the risk associated with the purchase of ULIP, for example how
much maximum amount can be withdrawn.

Before buying ULIP Plans it is important to determine risk factors.

5 ULIP Performance
Another important factor to consider is the performance of the plan. ULIP plans are designed to meet long-
time goals.

However, the investor needs to track different funds that are listed on the website or view the ratings of
the products.

An investor needs to check how insurance has performed in the last 5-10 years.

All this in totality will help you to purchase the right ULIP policy.
Thank You