Choose between Ulip and traditional plan on your needs

Updated: February 20, 2019 7:07:28 AM

The child receives a corpus post the policy term is over. In case of any eventuality of the premium paying parent, death bene-fits are paid to the nominee and the rest of the premium is waived off.

Choose between Ulip and traditional plan based on your needs, risk-taking ability Choose between Ulip and traditional plan based on your needs, risk-taking ability

By Pankaj Razdan

I plan to buy life insurance plan with one-time payment. Should I go for market-linked or traditional plan? Are charges higher in market-linked plans?
– Vikas Saluja
Opting for a unit-linked insurance plan (ULIP) or a traditional policy will solely depend upon your financial goals and requirement, your risk taking ability and other savings and investments. The two are non-comparable as they cater to different financial needs of different individuals. While ULIPs have charges, traditional plans do not have any extra charge besides GST. How much a plan will cost depends on factors like sum assured, the plan offerings, your age, lifestyle, etc. Go for a plan that best suits your needs.

I plan to invest every year for my child’s education. The options are PPF, ULIP or mutual funds. Which one should I go for?
—Rudraksh
We all work towards building a corpus to finance our child’s future needs like education, marriage etc. You should first evaluate an estimated fund that would be required for your child, then evaluate the various finan-cial instruments, opt for one that best fulfils your requirement and suits your risk appetite. You can also look at child plans from life insurance companies, serving the dual purpose of insurance cum savings. The child receives a corpus post the policy term is over. In case of any eventuality of the premium paying parent, death bene-fits are paid to the nominee and the rest of the premium is waived off. There is no lapse in the policy and the child gets matu-rity amount at the end of the policy term.

I want to buy a cancer protection plan for myself and wife. Is the policy bought when one is diagnosed of the disease?
–Archit Saxena
It is usually difficult to purchase a product if an individual is already diagnosed with the illness.

Is it better to buy a life insurance plan from the company or from an agent?
–P S Raghu
An insurance agent or an advisor is an expert who is appointed by an insurance company itself. So you can purchase a policy from them. Before purchasing, check the authenticity of the person. Also understand the policy features, analyse individual needs, evaluate the insurance company’s brand, reputation, claims settlement record, etc. prior to buying it.

The writer is MD & CEO, Aditya Birla Sun Life Insurance and Dy. CEO, Aditya Birla Capital. Send your queries to fepersonalfinance@expressindia.com

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