Unit Linked Insurance Plans (ULIPs) are quite popular among customers. They combine the benefit of insurance with investment and fulfil two needs in one. While your customers get to enjoy market-linked returns, they also enjoy insurance coverage during the tenure of their ULIP plan. That is why you find many takers for ULIPs when you sell life insurance. Given this popularity, there are hundreds of ULIPs available in the market. Which, among hundreds, is the best ULIP for your clients?
The answer is Bajaj Allianz’s Future Gain. Yes, this ULIP has some very good features which make it ideal for your clients. Let’s see what these features are –
- Very low premium allocation charges
A thing to be careful about in ULIPs is its premium allocation charge. If the charges are high, a high proportion of the premium paid is subtracted before it is invested in the chosen funds. However, when the charges are low, maximum premium gets invested in chosen funds and as such, the returns are higher. In Future Gain, the charges are kept very low. In fact, if the premium amount is Rs.2 lakhs and above, there is no premium allocation charge at all.
- Option of tailor-made investment strategy
Availing maximum returns from ULIPs requires customers to invest strategically. While some of your customers might be seasoned investors, some might be new to investments. Future Gain offers investment strategies for both these types of investors. Under its Investor Selectable Portfolio Strategy, your customers get a choice of seven investment funds. They can choose one or multiple funds for investing their premiums. The second strategy which the plan has is a readymade strategy called Wheel of Life Portfolio Strategy. Under this strategy, the portfolio is managed automatically by the insurance company in a pre-defined manner. The strategy follows the principle of ‘Years to maturity’. The initial premium is invested majorly in equity-oriented funds. Thereafter, as the policy years pass and the policy approaches maturity, the funds are switched to debt-oriented funds. The rationale is to safeguard the profits earned in earlier years from market volatility when the plan is coming to an end. This strategy, therefore, helps in yielding good returns for investors who are not familiar with capital market investments.
- Top-up facility is available
What would your customers like to do when their ULIP is providing them with very high returns? Wouldn’t they want to invest more in the plan? They would and so Future Gain provides policyholders the facility of paying additional premiums through top-ups. These top-ups help your customers increase their investments into the plan. Moreover, they also get an additional sum assured for the top-up premium they have paid. Thus, top-ups allow not only increased returns but increased coverage too.
- Flexible options
Future Gain provides your customers with various flexible options. Like other ULIPs, your customers can make partial withdrawals or switch their funds whenever required. Partial withdrawals help customers to meet their financial liabilities, whether planned or unplanned. In addition to this, Future Gain also allows its policyholders the flexibility to change their premium paying frequencies, decrease the sum assured or avail additional protection through riders. In fact, the plan offers five separate rider choices which can be chosen for increasing the scope of coverage available under the plan.
- Tax benefits
The last benefit which your customers can avail if they buy Future Gain is tax saving. There are three distinct tax advantages which ULIPs have and which is provided by Future Gain too. These include the following –
- The premiums which your customers pay for buying the plan are allowed as tax deduction from their taxable income. This deduction is allowed up to Rs.1.5 lakhs under Section 80C. Thus, investing in Future Gain lets your clients save tax
- Even the plan benefits are tax-free in nature. So, whether your customer gets a maturity benefit or a death benefit, the total amount of benefit would not attract any tax in his hands.
- Partial withdrawals, too, are tax-free in nature.
Thus, Future Gain provides your clients triple tax advantages.
Educate your customers on these salient features Future Gain. When they see the advantages of the plan, selling the plan would become easy and rewarding. You might also get references and increase your sales volume. So, help your customers choose Future Gain for their ULIP needs and insure them under the best ULIP plan.
Read more about Did you know the tax efficiencies of ULIPs?