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Unit-Linked Insurance Plans
ULIP full form is Unit Linked Insurance Plans, offering an amalgamation of insurance and investment. A portion of the premiums of ULIP plans is used to provide an insurance cover for your family. The remainder premium is invested in a market-linked mutual fund of your choice. You can select the mutual fund per your risk appetite, investment horizon, and financial goals. Further, a ULIP gives you the flexibility to alter your investment portfolio with changing needs and life stages in the future.
Typically, unit-linked plans have a five-year lock-in period. During this time, you cannot withdraw funds from your ULIP plan. ULIP plans offer tax benefits on premiums and maturity/death benefits received.
In terms of wealth accumulation, ULIP investments have been ruling the charts of investors. In a ULIP plan, you can choose to invest in mutual funds of your choice.
Depending on your risk appetite, you can choose from debt funds or equity funds to invest in. You also have an option to invest in hybrid mutual funds, offering a combination of equity and debt funds. Irrespective of the fund you choose, the market-linked returns of the plan help you accumulate wealth and fulfil your long-term financial goals, such as buying a house, saving for retirement, paying for your child’s education, and more.
Typically, an average ten-year ULIP produces annual returns between 10 and 12%. These returns are significantly higher than several other investment plans, including National Savings Certificate (NSC), Public Provident Fund (PPF), Equity-Linked Savings Scheme (ELSS), tax-saving mutual funds, etc. ULIP plans have the potential to outpace inflation if you remain invested in the policy for at least ten years.
ULIP stands for Unit Linked Insurance Plan. In these plans, one share of your premiums provides a secure life cover for the policyholder, whereas the other premium share is invested in different fund options. You can choose the fund aligned with your wealth creation plan and risk tolerance.
In case of unfortunate death of the policyholder during the ULIP insurance tenure, the nominated beneficiary of the policy will receive the death insurance benefit and/or the fund value, whichever is higher. On the investment front, the insurance company grants ‘units’ as per the proportion of money invested in the market-linked funds. This unit represents the investment value, denoted by a NAV (Net Asset Value) declared daily. If the policyholder survives the insurance duration, the maturity amount payable will be the fund value of the ULIP wealth plan.
Unit Linked Insurance Policy can best be categorised per the following parameters:
Type of funds they invest in
The end-use of funds
How to Choose the Best ULIP (Wealth Creation) Plans?
Here are some parameters that you can use to select the best ULIP in India:
Our Best ULIP Plans/Wealth Plans
PNB MetLife offers a range of wealth plans adequately fulfilling your investment and insurance needs. Our funds have reported consistently high performance over the last five years. You can check out the PNB MetLife ULIP plan charges that offer utmost investment flexibility and transparency.
Here are two of what can be considered as our best ULIP plans:
High Performing ULIP Funds
|Fund||Category (Group)||PNB MetLife Fund Rank||Total Fund per Category|
|Multiplier III||Large cap (equity)||1||102|
|Virtue II||Multi cap (equity)||1||51|
|Mid Cap||Mid cap (equity)||1||19|
|Balanced Opportunities||Balanced allocation (allocation)||1||91|
|Protector II||Medium to Long Duration (fixed income)||2||57|
*Source: Morningstar India, PNB MetLife website *1 year performance, as of December 13, 2021
How to manage ULIP funds?
There are two ways to manage your ULIP funds:
Key Features of ULIP
Benefits of ULIP
What is a ULIP Calculator?
ULIP calculator is an online free tool offered by insurance companies, allowing you to understand your ULIP plan cover and corpus requirements. The ULIP plan calculator asks for inputs like ULIP investment sum, premium payment frequency, investment period, expected rate of return, etc. These details will enable the calculator to give out the future value of your ULIP investment. You can use this information to estimate the amount you should invest in a ULIP plan to achieve your financial goals.
Some of the ULIP plan charges include:
Overall, ULIPs are a wise investment choice for you and your family’s future financial security. However, study different ULIPs before making an informed investment decision.
A ULIP offers a mix of both insurance and investment. A part of your premiums is used to provide insurance cover while the remainder is invested in the fund of your choice.
PNB MetLife ULIPs are among the best wealth insurance plans, allowing you to secure the financial future of your loved ones in your absence while also earning high returns through market-based investments.
Everyone with a stable income source should consider investing in a ULIP plan, irrespective of age, life stage and financial responsibilities. The earlier you invest, the more you benefit from the power of compounding.
ULIP lock-in period ensures you stay invested for an adequate duration, allowing your money sufficient time to benefit from the power of compounding.
ULIP fund value is the Net asset value (NAV) representing the per unit share market value.
NAV = Total value of cash and securities in the portfolio – liabilities/number of outstanding shares
PNB MetLife allows you to create your wealth plan with its self-managed option. In this medium, you manage your ULIP investments directly and can switch between ten other ULIP funds. You can redirect premiums per your risk appetite and market conditions.
Mutual funds are pure investment products, whereas ULIPs combine insurance and mutual funds in a single offering.
ULIP plans that align with your risk tolerance and financial goals are the best for your need. You can consider investing in PNB MetLife Funds that rank high across Morningstar ULIP Funds in four prime categories.
ULIPs are a good investment because they offer insurance plus investment benefits along with tax advantages.
You can withdraw ULIP funds penalty-free after the five-year ULIP lock-in period.
As your trusted life insurance partner, PNB MetLife is with you amidst the current COVID-19 outbreak. Our policies also cover COVID-19 Claims. In case of a Death Claim, kindly submit the signed Claim Intimation Letter mentioning the policy number, brief of the insured event and other claim documents on the email mentioned herewith. Please write-in to us at firstname.lastname@example.org or email@example.com. You can also call us on 1800-425-6969 for death claims intimations and for any queries on Monday - Saturday between 10:00 am - 7:00 pm.
PNB MetLife Insurance, amongst the trusted Life Insurance companies in India, aims to provide a wide range of Life Insurance products that suits the needs of an individual at every stage of his life. Life Insurance Plans range from Term Life Insurance Plans, Term Plan, Protection Plans, Long Term Savings Plans , Retirement Plans & Child Education Plan.