Unit Linked
Policies (ULIPs) are more Customer friendly and will provide you handsome
return in long time investment with the coverage of Risk. How ULIPs products
are more Customer friendly and better option for investment. We are giving
present Guidelines of Insurance Regulatory and Development Authority (IRDA) who
certify that ULIPs are more customer friendly now.
IRDA Guidelines Regarding ULIPs :-
Minimum Policy term- 5 Years
Lock-In Period of – 5 Years
First partial withdrawal only
after 3rd Year
No Loans against ULIPS
Death benefit under a single a
premium ULIP Product should be at least 125% of the single premium paid.
In non-single premium ULIP
products, the death benefits should be a formula (0.5x term of the policy
annualized premium) or (5x annualized premium), whichever is higher.
The sum assured payable on
death shall not be reduced at any point of time during the term of the policy,
except to the extent of the partial withdrawals made during the two-year period
immediately preceding to death of the assured.
However on attainment of sixty
years of age of the life assured, all the partial withdrawal may be set of
against the sum assured payable on death.
The above are the regulations regarding ULIPs by IRDA and they not only
indication but also certified that the current ULIPs are more customer friendly
and will provide you handsome return. So if you are planning to invest in ULIPs
policies, you will definitely invest. This is the right time of Investment in
ULIPs. If you want your money give the return with security you should invest
in monthly premium mode for minimum period of 12 years.
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