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All You Need to Know about New Generation ULIP

Unit-linked Insurance Plan (ULIP) is an insurance product which gives you the option to make an investment with getting insured. A portion of the premium paid by you is utilized towards insurance, and the remaining portion is invested in funds chosen by you. This gives you an additional benefit of return on investment with a term insurance plan in just one scheme.

Why Should You Invest in New Generation ULIP?

There are certain benefits that make the new generation ULIP plan a perfect insurance product. The reasons are as follows:

Switching option: You can switch between the funds of your choice

Higher Returns: If you’re investing in ULIP over a longer period of time, you can expect 15 to 20 percent returns.

Insurance Cover: The sum assured is at least 10 times of annual premium you pay. You can increase this while choosing the policy. Different policies have different features. You can choose sum assured between 10-20 times.

Easy Liquidity: You can surrender your policy after 5 years of the lock-in period.

Popular New Age or 4th Generation ULIPs:

There are a few popular 4th generation ULIP plans in the market. They are:

Edelweiss Tokio Life-Wealth Plus:

Edelweiss Tokio Life-Wealth Plus plan is a ULIP scheme that meets the investment requirements by investing a 100% of your premiums. It also allocates an extra amount to a policy purchased by you.

Features and Benefits:

Additional Allocation: Wealth Plus makes sure that 100% of the premium is allotted to the fund as per your preference and Investment Strategy. Moreover, this plan offers an add-on allocation every year beginning from the first Policy Year until the end of the term of premium payment.

Apart from this, during the first five years, the additional allocation is added to the fund along with the premiums paid by the customer. At the beginning the sixth year, a premium booster is added to the fund at the end of each policy year.

Rising Star Benefit: This benefit is ideal for parents who wish to secure their child’s goals. Under this benefit, an additional death benefit will be applicable. In case of an unfortunate demise of the Policyholder (parent) the following benefits are applicable:

  • A lump sum amount is paid instantly.
  • An amount equal to the sum of all the future Modal Premiums will be instantly credited to the Fund Value
  • Additional allocation as and when due will be added to Fund Value
  • Life Cover on Life Insured will continue
  • The Policy continues till the maturity date or  the death of Life Insured, whichever is earlier

Unlimited free switches between the funds, Unlimited Premium Redirection, Partial Withdrawals, and Top-up Premiums are some more features of the plan.

Bajaj Allianz- Goal Assure:

Bajaj Allianz Goal Assure is a life goal based ULIP giving an opportunity to plan your unique experiences with no worries.

Features and Benefits:

  • Fund Booster at the maturity (for policy term 10 years or greater):
  • Loyalty additions (for Annualized Premium of Rs 5 Lakhs or more & for policy term 10 years or greater)
  • No premium allocation charge
  • Return of mortality charges at maturity (ROMC)
  • Option to take maturity in instalments with Return Enhancer
  • Choice of 4 investment portfolio strategies
  • Choice of eight (8) funds
  • Option to reduce sum assured and change the premium payment term

Max Life Online Savings Plan:

Max Life Online Savings Plan comes with two variants. Under both these variants, you’ll qualify to get the lump sum amount, equal to the Fund Value.

Variant 1

Under variant 1, a death benefit is described as the highest of 0.5 times the product of Annualised Premium and Policy Term or the Sum Assured or 105% of the total premiums you paid till the date of death or the Total Fund Value as on the death date.

Variant 2

Under the second variant, a death benefit consists of a Lump Sum benefit, which is payable instantly on demise, followed by the regular payouts in form of the total Fund Value and Family Income Benefit at the conclusion of the Term of your policy. Moreover, all the outstanding premiums after the death date of the Life Insured are funded by the Insurer. The cover multiple under this variant is fixed at 10 times the Annualized Premium.

Ajeet Sharma, the founder of Financegab and a well-known name in the field of financial blogging. Blogging since 2017, he has the expertise and excellent knowledge about personal finance. Financegab is all about personal finance which aims to create awareness among people about personal finance and help them to make smart, well-informed financial decisions.


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