How to Invest in ULIP: A Complete Guide

First of all, investing means setting your financial objectives very clearly. Are you saving for a kid's education, retirement, or wealth accumulation? ULIPs have funds tailored for different goals, ranging from aggressive equity funds to stable debt funds.
For instance,

• Equity ULIPs are the best choice if you have a long-term wealth creation goal, as they are the riskiest among the three.
• Debt ULIPs are less risky and, therefore, good for short-term or moderate growth.
• Balanced ULIPs use both equities and debts for moderate risk and steady growth.

Each investor has a different risk profile. So, if you can bear the unstable market, then equity funds are your bet. Again, if you want to take the safer route, then invest in debt funds. ULIPs allow you to move between funds based on your risk tolerance. This also ensures that you make money with the market while managing your risk profile.

Different ULIPs have different features. You can compare various ULIP plans by considering the fund options, charges and performance history. For example, you may checkout several ULIP Plans from Axis Max Life that are designed for different investment goals and risk profiles.

A question that puzzles the majority of investors is how to invest in ULIP plans monthly or yearly. You can pay your premiums monthly, quarterly, half-yearly, or annually, depending on your financial situation.

• Monthly premiums help keep the budget in check and reduce the financial burden.

Salaried individuals will have a better flow of income with monthly payments, whereas business owners may be better off with yearly payments. You must decide which payment method will keep your premium payments regular.

ULIPs give you the liberty to distribute your investment in various funds, such as:

• Equity funds - to get higher growth and for long-term goals.
• Debt funds - to ensure capital protection and a steady return.
• Balanced or hybrid funds - to get the combination of growth and safety.

Moreover, you have the option to shift between funds anytime during your policy tenure based on market trends or your changing life goals.

ULIPs investments can be made online or offline.

• Online purchase: Go to the website of the insurer, select your plan, complete the proposal form and pay safely.
• Offline purchase: Visit a nearby branch or meet an authorised advisor for guidance.

Axis Max Life makes it simple to invest online with a transparent, step-by-step process. If you’re interested in investing a ULIP policy, you can talk to our experts to take the right first step.

After investing, keep a close eye on your ULIP performance. Keep track of your funds' Net Asset Value (NAV) and, if required, switch or re-balance it. By reviewing, you can make sure your ULIP stays in line with your long-term objectives.

ULIPs provide both investment returns and life insurance. This implies that while your money keeps growing over time, your family will be financially stable in the event of your untimely demise.

Depending on your financial objectives or market outlook, you can quickly move between debt, equity, and hybrid funds. A few free switches are permitted annually by the majority of insurers.

ULIPs are intended for long-term financial commitments. Over time, you can develop a sizable corpus with the aid of market-linked returns and compounding.

Section 10(10D) exempts ULIP premiums and maturity proceeds from taxes, subject to the requirements of current tax legislation.

Contemporary ULIPs provide complete transparency. To make sure you know exactly where your money is going, you can monitor charges, fund performance, and NAVs online.

To understand in detail, you can go through the Benefits of ULIP Plans, so that you make the right decision.