Monday, 21 January 2013

Most famous myths of ULIP Plans



Here are some more myths and realities for you to know about ULIP Plans. Before this blog, I have explained some very interesting and essential points of myths and realities in front of you about this plan.
  Lets have a look on some more points
Myth : After buying a ULIP, you also need to buy additional insurance policies to provide coverage for health, accident, etc.
Reality: Most ULIP Plans provide additional insurance benefits in the form of riders, which allow you to increase the existing cover benefits at additional marginal costs. Optional in nature, these benefits may provide coverage for accidents, disabilities, diseases and hospitalisation expenses, thereby, removing the need to buy separate insurance policies to cover such events.

Myth :  ULIPs are illiquid.  Access to funds is only available on death or maturity
Reality: ULIPs allow you to undertake partial withdrawals from your investment fund, after completion of specified policy years. Depending on the policy terms, there is a minimum and maximum withdrawal limit that must be met.

Conclusion
As ULIPs allow you to provide the safety net that will secure your family’s financial wellbeing even in your aftermath, understand the policy features. A wrong decision may prove to be harmful to your financial health!

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