By Manan Vyas
Unit Linked Insurance Plans- How does one choose his/her plan?
Who doesnt want to fulfil two objectives with one policy?
A Unit Linked Insurance Plan is one such product that helps one to fulfil both insurance and investment objectives at the same time.
ULIP, being better than Fixed Deposit, in terms of compounding, is no doubt the new trend in the market. As a result, it is provided by many financial institutions, a few popular ones being Edelweiss Tokio Life, ICICI, HDFC, Aviva Life Insurance, Life Insurance Corporation, Bharti AXA and others. Rating agencies like Morning Star rate these ULIP plans independently and help consumers in taking informed decisions.
Edelweiss Tokio Life Wealth Accumulation (Accelerated Cover) is a ULIP plan with 6 individual funds that gives the investor a flexibility of switching between various funds based on risk appetite of the investor, allowing the investor to maintain a control on his/her investment portfolio.
ICICI Prudential Life Insurance has 5 ULIP plans that are available to a customer. Aviva Life Insurance Company also offers various ULIP plans to suit the requirement of a consumer. On the other hand, Life Insurance Corporation of India currently offers only one kind of Unit Linked Investment Plan. Comparing with all this, the one plan that stands out is Edelweiss Tokio Wealth Accumulation (Accelerated Cover) because provides the customer more choice where he can switch between equity and debt funds. So if one wants to maintain a balance between both equity and debt funds even then he can invest in managed funds. Also, all individual funds of Edelweiss Tokio Life have been rated 5 star by Morningstar. Since all the Funds by Edelweiss Tokio Life have been consistently performing well one can invest without worrying about his money.
It is inevitable for one to look for the best possible ULIP plan available in the market, and one must keep in mind the ratings by independent rating agencies while deciding what to do with ones wealth.