Start today! Yes, you read it right! Starting early in ULIP schemes gives you an added advantage. When you start early, your money gets more time to work harder on your behalf. Your money gets compounded for a longer period of time to accumulate wealth and reach the target required to achieve your life goals. Moreover, because of the built-in life cover, your family remains protected throughout your prime earning years, especially when your financial obligations towards them are really high. Thus, beginning in your 20s and 30s ensures that your investment grows steadily and significantly along with you. ULIPs (Unit-Linked Insurance Plans) are designed essentially for long-term capital appreciation. However, in case you have not begun your ULIP insurance journey yet, it is never too late indeed.

Anyone who is looking for:
• a long-term financial investment tool,
• to save consistently so that their wealth multiplies exponentially,
• with the power of compounding, and a flexible choice of market-linked funds
• to fund your life’s major goals, bigger milestones and even your financial responsibilities towards dependent members
• all this and more, blended with a life insurance plan travelling all along, to protect your family when you are gone

In other words, all that your investment strategy is currently missing is a well-structured ULIP scheme with Ageas Federal Life Insurance.

Sample Illustration: If you invest Rs. 1,00,000 annually for 20 years at an assumed 10% return, it may grow into a corpus of Rs. 63,00,000, however, if the same amount is invested for just 5 years instead of 20, it may yield a future maturity value of only Rs. 6,10,000 after the policy term ends.

Whether a ULIP plan is a good investment or not ideally depends on your financial goals. Generally speaking, ULIP schemes are versatile financial instruments that come in different structures according to your goals, risk appetite, and fund preferences. It’s an excellent product if you are in search of an option to combine investment returns with an insurance plan to maximize advantages for your loved ones. ULIPs allow you to choose market-linked funds to invest your money and accumulate wealth over time for different life goals, all this while protecting your loved ones with a life cover throughout. As your investment returns are linked to market performance and fund selection, you have the flexibility and convenience to align, switch and manage your portfolio based on your risk preference. You can opt for equity funds, debt funds or a mix of the two and modify your portfolio during the policy term to switch from higher risk to stable returns depending on your age, responsibilities and how your goals change with time. For example, a young investor starting with 100% equity allocation for higher growth can later shift to debt funds as priorities change during near-retirement age.

Not just that, when you invest in ULIP plans, you can also benefit from tax savings - both in terms of deductions for the premiums paid - under Sec 80C and exemption for the maturity amount / death benefit - under Sec 10(10D), subject to prevailing conditions. From the power of compounding to fund flexibility, from long-term disciplined savings habit to goal-based financial planning, ULIP schemes offer several advantages that indeed make them a good investment choice, ensuring great balance between family protection and wealth creation. ULIP plans are a strong and solid investment option for you, if you are ready to explore this holistic financial tool that can travel along with you for the next 15-20 years i.e. depending on when you start. The earlier, the better.

When you buy a ULIP plan online, you can strategize to build a financial safety net for your major milestones in life, with your policy working behind the scenes - a) to consistently deliver returns according to market performance, and chosen fund option, b) while also promising to help your loved ones, especially in your absence when they actually need a wealth cushion the most. Suppose you buy a ULIP scheme today, think of this investment decision as a powerful tool to give you the best of both worlds, unlike traditional insurance plans (with only life cover) and pure investments (with only financial growth). This is what makes ULIP both unique and popular among policyholders and insurers alike.

FINAL WORD: If you are having a very limited time horizon and are looking for quick gains, ULIP schemes may not be a perfect choice in such scenarios. However, if you can stay invested for a relatively longer duration to fulfill your medium-to-long-term financial goals, then ULIPs can work wonders in your case. This is a great pick and a compelling move for young professionals wanting to start investing early with dual benefits, for parents looking to build a significant corpus for their children’s education or future goals and for those individuals planning for their retirement stage with small steps starting today. For instance, a policyholder who invests Rs. 1 lakh every year, consistently for the next 20 years may potentially build a corpus of Rs. 45–55 lakh (assuming 8–10% average returns), along with insurance protection.

Yes. You can cancel your ULIP (Unit-Linked Insurance Plan). Knowing about cancellation terms in detail (i.e. when you can cancel your ULIP plan, how you must cancel your ULIP scheme etc.) beforehand helps you get back your investments in time when you need them the most. In certain cases, you may get your money immediately, in other scenarios, there may be a lock-in period until completion of which you may have to wait even after cancelling the policy.

Free-look Period Cancellation: This is the best time to cancel your ULIP scheme, that is if you want to surely exit. Because a free-look period is the time window given to the policyholder to review the policy conditions. If you think there is a mismatch between the plan and your expectations, you can re-evaluate your decision and get your premium back upon cancellation of the ULIP plan. So, you can get a refund from the insurer of the premium paid, after the company deducts the minimal charges as applicable for stamp duty, proportionate risk premium for the days covered, and medical exam costs (if any). Example: Suppose you paid Rs. 50,000 as the first premium and decided to exit the ULIP scheme within the free-look period, you may receive around Rs. 48,500 - Rs. 49,000 after all the necessary deductions.

Lock-in Period Cancellation: Since ULIP insurance plans as financial tools are primarily developed to support your long-term investment goals, they come with a mandatory lock-in of 5 years. To ensure that this basic feature of ULIPs is kept intact, and to discourage buying of ULIP plans online in order to meet short-term goals, the fund value is not paid out immediately if you exit from your plan during the lock-in phase i.e. before completing 5 years. It is instead converted into a discontinued policy fund with minimal returns and withdrawal is allowed only after 5 years in this case.

Cancellation After 5 Years: After the completion of the lock-in, you can surrender your Unit- Linked Insurance Plan (ULIP) anytime to get the fund value without any surrender charges (after 5 policy years). For instance, suppose you invested Rs. 1 lakh annually for 5 years (Rs. 5 lakh in total), and your ULIP fund value (the current value of your investments after NAV calculation) after 5 years comes to Rs. 6.2 lakh, you can surrender the policy and withdraw the entire Rs. 6.2 lakh.

While you have complete control and choice to surrender and discontinue your ULIP funds anytime, it is always preferred that you retain your ULIP scheme for as long as you can to maximize benefits and extend protection for your family. It is also very crucial to note that when you cancel your ULIP plan, you lose the inbuilt life cover, risking your family’s future, exposing them too soon. By exiting early, you may also miss out on the long-term compounding benefits from your ULIP funds. Instead of surrendering very early for your interim financial obligations, you can opt for partial withdrawals after lock-in to support your urgent needs.

A 5-year policy term is a relatively short window compared to a 10-year or a 20-year horizon for your ULIP scheme to grow into a substantial corpus. Moreover, most ULIPs have a lock-in of 5 years. Because of which, this time frame is usually considered volatile and returns depend majorly on the funds chosen and the market cycles in those years. You can expect a variety of outcomes in such scenarios i.e. from modest gains to even negative returns. Because an equity- heavy mix in your portfolio can be highly variable and a debt-only option may yield just low and unsatisfactory returns in this duration. To add to this, the first year of investing also brings certain costs like allocation charges, mortality charges, admin fees and fund management fees, which reduce the overall contribution towards the ULIP scheme.

Three years is not at all recommended in ULIP funds as most ULIPs come with a 5-year lock-in which prevents you from withdrawing your money even if you want to exit the plan prematurely in just 3 years. Out of a three-year horizon, the first-year charges which are deducted from your premium reduce your contribution for that year significantly. Over a short period, the impact of these charges are felt deeply affecting the early-stage performance of the ULIP funds, whereas, over a longer time frame, these costs get balanced out. Also, you can expect your returns to swing widely because over a three-year policy term, your ULIP funds either capture a bull phase with good returns or a bear / correction phase with poor / negative returns. For instance, over a 15-year term, these effects smooth out and you can anticipate more reliable outcomes. It is therefore important to register that ULIP insurance plans are fundamentally not to be treated as short-term financial instruments.

Sample illustration:
Suppose you invest Rs. 1,00,000 annually in a ULIP scheme. 85% of this premium is allocated to funds after deducting charges. Therefore, net amount invested per year = Rs. 85,000 Total investment for 3 years = Rs. 2,55,000 In an equity-heavy ULIP plan (at 12% annual return), the approximate fund value may be Rs. 3.01 lakh. In a debt-focused ULIP plan (at 5% annual return), the corpus may grow to Rs. 2.67 lakh. Whereas in a balanced ULIP fund (at 8% annual return), you can expect around Rs. 2.76 lakh at maturity. Thus, a 3-year policy term in ULIP schemes generally tends to underperform.

Sample illustration:
Let’s assume you pay Rs. 1,00,000 annually for 10 years.
Premium allocation after charges (85%) = Rs. 85,000 per year.

It is always recommended to periodically review fund performance and restructure your portfolio as needed to maximize returns.

A policy duration of 20 years and beyond is long enough for the amount you have invested in ULIP funds to grow by several times. A 20-year ULIP investment plan also keeps your loved ones safe throughout for an extended period, especially all along your prime working years when your financial responsibilities are really high. Generally, ULIP funds reward those individuals who are extremely patient with their investment, as a longer policy term allows the plan to multiply your corpus exponentially with the power of compounding, in turn maximizing the ULIP scheme’s wealth-building potential, specifically in case of equity-linked funds. Over this time frame of 20 years, your ULIP scheme can even outperform traditional instruments with the right fund choice, switch flexibility depending on market volatility, and long-term disciplined savings through premium contributions.

ULIP plan benefits in 20 years:
• Partial withdrawals (after 5 years lock-in) for life goals like buying a home, child’s education etc.
• Even if the fund value declines or fluctuates according to the market scenario, the life cover component keeps your family safe for the full term.
• Tax savings in the form of deductions for the premiums paid and tax exemption on ULIP maturity and death benefits (subject to prevailing tax rules and premium conditions as applicable).

Sample illustration:
You invest Rs. 1,00,000 annually in a ULIP fund, with 85% (i.e. Rs. 85,000) allocated after charges.

Knowing what happens when your ULIP scheme matures helps you to plan in advance for your financial responsibilities that are expected along the end of the policy term or thereafter. What has your disciplined investing habit culminated into after all these years of compounding? In simple terms, the value of your investment when the policy duration ends (i.e. after reinvesting your dedicated and regular savings year after year in your chosen fund option) is what is called the maturity benefit in insurance parlance.

When you buy a ULIP plan online, you need to decide your policy term (For example: 5, 10, 15, 20 years or more), depending on your financial capacity and life goals. This term decides your maturity date. At the end of this term, the insurance company shall pay the fund value accumulated in your ULIP investment plan. What is this fund value? It is a combination of several factors: 1) your premiums invested throughout minus the charges as applicable, 2) growth based on the performance of the funds you chose (equity, debt, or balanced) i.e. returns that got reinvested year after year and, 3) any bonuses or loyalty additions, as applicable. Another important thing to note: Your life cover comes to an end when the ULIP plan matures. This is because you have outlived the term and your family now needs no protection for any uncertainties. The pure payout from the ULIP scheme at maturity can take care of your key milestones and the family’s future too. You can explore from the options below for the maturity payout.

1. Lump sum withdrawal of the maturity value
   Example: You invest Rs. 1,00,000 every year for a policy term of 15 years in an equity ULIP insurance plan. Let’s say the fund grows at 10% annually. Assume your maturity corpus has grown to around Rs. 31 lakh. Now, at the end of the term, you can withdraw this entire amount and it is usually tax-free (under Section 10(10D) subject to certain premium conditions).
2. Regular payout or systematic withdrawal plan
   • Structured system
   • Ideal for retired individuals expecting
   • Periodic payouts i.e. monthly, quarterly or annually
3. Other alternatives:
   
   • Extension of the ULIP plan beyond its maturity
   • Transfer of the maturity proceeds into another financial instrument for reinvesting purposes

To enjoy a fulfilled investment journey spanning many years with your ULIP funds, plan the best use of your maturity payout by choosing an ideal option from above for your unique needs according to the different stages of your life.

Although insurance and investment as subjects have evolved over time, there’s still a lot of confusion when it comes to investing in a ULIP fund. ULIP (Unit-Linked Insurance Plans) are misunderstood by many even today. Let’s break down the several myths by understanding the corresponding facts in detail, one ULIP plan feature at a time. Older versions of certain ULIPs had some drawbacks, which is why there are many misconceptions that continue to exist till date. Getting your doubts cleared is the first step towards designing a great financial plan. Unlike individuals who are hesitant to buy a ULIP plan because of some misinterpreted information revolving around them, you can use this comprehensive guide below to bust those myths and make the best use of this excellent financial instrument to build a wealth cushion for your secured future. Today’s ULIP schemes are investor-friendly, here’s why:

Remember that when you buy a ULIP scheme online, you are choosing an all-in-one smart strategy for savings + protection + wealth building + family future + balanced risk and return. It’s high time to start seeing ULIPs for what they really are.

Generally speaking, most ULIP plans do not promise any guaranteed returns as these investments are dependent on the market conditions primarily and also on the type of funds you have selected (equity, debt or balanced funds) to a major extent. In other words, basically ULIP funds are not fixed-return instruments, they are long-term inflation-beating wealth builders. For instance, suppose you invest in equity funds, your portfolio may shift up and down based on the stock’s performance. In comparison to the volatility in equity funds, debt funds are definitely steadier. However, in that case, you may need to be mindful of the interest rates therein. Since, the flexibility lies in your hands - of picking and switching between different fund options, the insurance company can have no control over the returns.

On the other hand, ULIP schemes, unlike traditional endowment plans and money-back insurance plans which come with guaranteed returns, bring along higher growth potential with them. Moreover, if you are someone who prefers principal protection at maturity and certainty with minimum returns, then you may opt for guaranteed ULIPs / capital-protected ULIPs in place of the standard ULIPs. That is, a guaranteed ULIP may assure you at least 105% of the premiums paid at maturity, regardless of the market situation. Guaranteed ULIP plans come with a lower growth potential because of their limited equity exposure when compared to regular ULIP funds. While this brings down the volatility, and increases safety for the policyholder, it also adds another drawback - Higher premiums.

Example: If you invest Rs. 1,00,000 annually for 10 years (Rs. 10 lakh total)

Scenario 1: Non-guaranteed ULIP (equity, 10% annualized return)
Fund value after 10 years approximately around Rs. 17.5 lakh
Assuming if markets aren’t favourable (4% return), corpus drops to Rs. 12 lakh

Scenario 2: Guaranteed ULIP (capital protection, 5% assured return)
Maturity value guaranteed → Rs. 12.5 lakh
Upside capped at around 6–7% even if markets do better