The world entered 2020 full of hope. A new year with a new promise. And then a tragedy struck like never before. A new virus has been discovered that has infected nearly 180 million people around the world, and continues to count. The virus, which has been named the COVID-19 virus, has also killed nearly four million people and thousands of deaths are still reported every day. But that’s life. It is unpredictable and full of uncertainties. And the COVID-19 virus reminded us of this unpredictability again in 2021 when the second wave of the virus hit India with even greater force. In the first week of May, India witnessed four new infections per day, four times the peak of last year.
While COVID-19 may be a once-in-a-century event, it is just one example of how life can be derailed by something unexpected. Millions of families have lost their loved ones, including breadwinners, which has had an impact both emotionally and financially.
However, it should be remembered that the tragedy of losing a loved one can arise for so many other reasons. As an example, around 1.5 lakh people are killed and over 4.5 lakh are permanently disabled in around 4.5 lakh of accidents in the country every year.
The cases of serious fatal diseases like cancer are also on the rise in India.
While dealing with the emotional trauma of losing a loved one, not having to worry about finances can be a big relief for the grieving family. Therefore, working on a solid financial plan is crucial when things are going well for you and your family.
ULIP to the rescue
What exactly you need is to have a back-up plan to make sure that your family is financially protected while you are away, and simultaneously, you are also accumulating enough wealth to give them a bright future if you are still out. their sides to take care of them. . A life insurance plan is something that serves the first part of that plan, while investing wisely can support the second.
However, there is a third way that can help you achieve both goals simultaneously. Yes, we are talking about an insurance plan linked to units, or simply called ULIP. A ULIP is an effective, long-term financial planning instrument that combines both the investment and insurance needs of the investor.
So, in addition to life insurance coverage, you can invest in a ULIP to achieve various life goals, such as securing your retirement years, higher education and the marriage of your children, or to achieve any other goal. long-term financial support that you might have.
Ease of recharging in ULIPs
Although ULIP plans have grown in popularity overwhelmingly, few policyholders are aware of some of the features offered by a ULIP plan. One of these advantages is the possibility of recharging a ULIP.
An additional facility is provided by life insurance companies to allow policyholders to increase the amount invested in their ULIP policy. Note that the recharge facility can only be used if the policyholder pays the premiums at regular intervals. It should be used on basic policy.
How to top up your policy
When an insured takes out a ULIP policy, he may have the option of paying additional premiums at any time according to his choice, in accordance with the general conditions of the product. This is the amount paid at irregular intervals in addition to the ULIP base premium. However, this premium amount must not exceed the total premiums under the policy. Life insurance companies allow a minimum top-up premium of around INR 2,000, but this varies from insurer to insurer and product to product.
If you have an excessive accumulation of funds, be sure to channel your money into the right investment option. If your ULIP policy has always been effective, you can supplement it with an additional premium according to the limits defined by the insurer on their respective product. Top-ups will result in an increase in the amount of coverage chosen according to the general conditions of the product.
Insurers like Bajaj Allianz Life allow the online payment of additional premiums, which is the preferred and fastest way. It’s also safe now, with social distancing becoming the norm.
If you decide to go for a ULIP, you should consider a reliable plan like the Bajaj Allianz Life Goal Assure – A Non-Participating Unit Linked Life Insurance Plan. This is one of the preferred options because not only does it give you all of the benefits of a ULIP, but it also returns the life cover fee at maturity. Additionally, to get the most out of your ULIP investment, you can choose from four investment portfolio strategies and receive your maturity benefit in $ installments.
Due to the multidimensional nature of ULIP Advantages, you may want to consider adding them to your investment portfolio to find a balance between your insurance and investment needs. With the ability to choose from different funds and add a top-up if needed, ULIPs can be considered one of the preferred investment and insurance options available for you to build wealth while providing protection. financial to your loved ones.
# Reimbursement of Life Coverage Costs = Reimbursement of Mortality Costs (ROMC) which is payable at maturity, provided all premiums due have been paid.
The $ settlement option is subject to the terms and conditions of the policy
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