People are nowadays more interested in investing in stock markets to get better return from their hard earned money. ULIP or the Unit Linked Insurance plans are the special way of investing money in the stock market without direct customer intervention. The profit from ULIP products is low when compared with mutual funds and share trading. However, ULIP plans provide better interest rates and growth when compared with normal bank savings, fixed deposit or recurring schemes. Another advantage of the ULIP is the insurance cover during the period of the plan.
The funds collected from the users are divided based on the latest NAV value and deposited in share market, government bonds and debentures. Each ULIP plan will have different funds that are designed on certain criteria. There will be a fund manager to switch the fund and shares to attain the best possible NAV value, in a pre-elected time frame. Until last October, ULIP companies were imposing huge charges on ULIP products. The new IRDA rules made them cut down the charges, and to offer redesigned ULIP products. Here is a list of new plans launched after September 2010.
- SBI Life: SBI Life Smart Performer, SBI Life – Saral Maha Anand and SBI Life – Unit Plus Super.
- LIC: Pension Plus and LIC Endowment Plus.
- ICICI Prudential: ICICI Pru LifeLink Wealth SP, ICICI Pru Pinnacle II and ICICI Pru LifeTime Premier.
- HDFC Standard Life: HDFC SL Crest, HDFC SL ProGrowth Maximiser, HDFC SL ProGrowth Super II, HDFC SL New Money Back Plan and HDFC Single Premium Whole of Life Insurance Plan.
- Reliance Life Insurance: Reliance Life Insurance Highest NAV Advantage Plan, Reliance Life Insurance Classic Plan and Reliance Life Traditional Golden Years Plan.
- Baja Allianz: Max Advantage Insurance Plan, iGain II, Shield Insurance Plan, Wealth Insurance Plan.
- Tata AIG: Tata AIG Life InvestAssure Plus Supreme.
- Aegon Religare: AEGON Religare Future Protect Plan, Future Protect Plus Plan, AEGON Religare Assure Plan
- ING Life Insurance: ING Prospering Life, ING Uttam Jeevan, ING Uttam Jeevan SP.
- IDBI Federal: IDBI Federal Wealthsurance Milestone.
Each Unit Linked Insurance Plan product differs in the charges levied, benefits and the equity exposure. Make sure that you read the offer brochure and check previous NAV performance before investing.