Investing Hard Earned Money in ULIPs in India

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Investing Hard Earned Money in ULIPs in India
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• Until recession struck and the stock markets saw
  a steep fall, these used to be one of the widely
  sold products by insurance companies in India.
  However, a crashing stock market shattered the
  hopes of investors who were pained to see the NAV
  of their policies plunging down and putting them
  into losses.
• Fundamentally, these plans remain a good
  investment vehicle but the extraordinary returns
  that the stock market offered in the bull time
  had raised expectations of the investors to
  wildest levels. These investment plans are
  actually intended to be investment for a long
  term hence buyers should avoid making judgment
  by observing its performance over a short term.

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• ULIPs in India are now more attractive and safe
• In the year 2010, with a view to protect the
  interest of the consumers, IRDA had introduced a
  few changes in the ULIPs. IRDA made it mandatory
  for such plans to have a 5 year lock in period.
  It also revised the structure of charges.
• The way to go about investing your hard earned
  money
• If your past experience with ULIPs has not been
  pleasant, it is wise that you rather not be
  biased. You can hope for good investment returns
  from your unit linked saving plan by being
  disciplined and prudent.
• 1) Allow your money to remain invested for a
  longer term - In case, the markets fall, do not
  panic to liquidate. Rather continue with your
  premium payment and be assured of decent return
  rates.
• 2) Plan your premium payment as a systematic
  investment plan - Rather than paying your premium
  in one shot, opt for the systematic investment
  option under which you can stagger the payment of
  the premium over a 12 month period.

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• A few ULIPs also offer the investor an option of
  switching between investment plans. Currently, if
  you have invested in a 100 percent equity saving
  plan and you have a sense that the equity market
  will be underperforming during the year, you can
  switch your investment into an saving plan that
  primarily comprises debt. A unit linked
  investment plan will allow you a free number of
  switches every year.
• These days, some insurance companies are offering
  new versions of these investment options for
  money back policy in order to get back customers

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• Buy a ULIP online
• It is preferred that you buy ULIP online as it
  can save you the cost of agent commissions. In
  fact, some insurance companies in India are
  offering these saving plan only as an online
  offering in an attempt to save on the
  distribution cost and pass on the benefit to the
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• Policyholder in terms of lower policy charges.
  Moreover, when you buy a policy online, you also
  get the facility to compare various plans whilst
  sitting in the comfort of your home, so that you
  may buy a policy that fits your needs as well as
  your pocket.
• Article Source http//EzineArticles.com/8136249

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