ULIP
plans are trending in the market more and more these days as they are extremely
buyer friendly and multifunctional. But there are certain sales pitches from
the insurance company’s end that you must know.
Firstly, before getting into any further details about
the pitches, we must know what ULIP is exactly. ULIP is an abbreviation for
unit-linked insurance plan that is a different kind of plan in the insurance
industry.
Usually, insurance plans offered by companies are plans
that either are categorized as life insurances or as medical insurances. In
both cases, you must be paying a certain amount of money every month as premium
and in the end you would get an amount that is your sum insured.
ULIP also has life insurance properties but whilst doing
that, it also lets you invest in other processes like stocks and mutual funds
etc. In allows you to use the money that you are paying as a n option for
investment in various different fields like stock and mutual funds.
Basically, ULIP is a very easy and convenient plan to
choose when you're looking for a policy and also want to make some right types
of investment.
However, there are so many ULIP options available in the
insurance market that often a buyer may be confused as to which one to choose.
Also, there are so many sales pitches prepared by these insurance companies to
sell the ULIP and a buyer must be aware of all these tactics to make the right
decision without being deceived.
Here are 4 sales pitch techniques that insurance
companies always use when they want to market a ULIP.
- The
premium pitch.
The sales agents get you by saying that you would have to
pay premium for only a period of 3 years or so and not after that. They often
don't say the other part of the story which is the fact that the premium you
don't pay gets cut from your original sum.
- The
fund manager technique.
Sales executives selling ULIP would give you a guarantee
saying your funds would be taken care of by a fund manager, while in reality,
all insurance funds are taken care by fund managers.
- New
ULIP sales tactic.
The sales person would make you believe that the newer
the ULIP plan he cheaper it would be for you. They overlook all the other
factors involved in buying a suitable ULIP.
- The
guarantee of returns.
The sales manager would tell you that with a ULIP you are
guaranteed to receive returns but in reality, it involves the same risk as any
investment done in the market would.
Here were the few pitches you just know about buying a Suitable ULIP Plans for Yourself.
Why
to buy a ULIP?
Though you might be given various sales pitches,
investing in a ULIP is still a great idea. It lets you be in control of your
funds while still having the security that you need, which is a great deal.
ULIP is different from any other form of insurance as it does not just provide
you with an insurance, but also gives you the opportunity to make an investment
through mediums like stocks and mutual funds. This is a really innovative and
efficient manner to buy a insurance policy.
Features
and benefits
Here are the few features and benefits of ULIPs
•Mostly, guaranteed returns. Most people buying ULIP have
had great returns after the prescribed time.
•More authority over the money invested.
•Multi functional since provides Botha security and
investment options.
•short term investment, though not very short, but still relatively shorter than other investment plans.
Eligibility
You must be above the legal age to buy a policy that is
18 years and must have your documents in place that is the only eligibility.
Also few more eligibility criterion a may be applicable depending upon the
actual company you take the ULIP from.
Documents
required
Few document that you would need to buy or invest in a ULIP
Are,
•address proof (your ration card or your passport)
•Identity proof (documents like a PAN card or an aadhaar
card)
•Age proof (documents like the birth certificate)
