Are ULIPs worth the risk? Find out!

Despite its various features and advantages, Unit linked insurance plan is one of the most often misunderstood financial tools. Because of the built-in investing component, ULIPs are often seen as hazardous vehicles.

ULPs let investors participate in a wide range of equities and debt securities, with rewards dependent on market performance. Thus, market volatility plays a significant influence in deciding the aggregate returns from these particular funds. However, the entire risk associated with Unit linked insurance plans is not dependent on a specific kind of fund choice. Instead, it is the sum of the risk profiles of the fund alternatives in which you choose to invest.

With a Unit linked insurance plan, you have discretion over which fund possibilities are included in your investing portfolio. For example, suppose you opt to maximise your profits by investing only in stocks. In that case, your investment risk rises as well since equity funds are the most vulnerable to market-related hazards. A ULIP portfolio consists only of debt funds; on the other hand, it would have significantly less risk exposure but far lower total returns when compared to equity investments.

However, depending on your risk tolerance and financial objectives, you may choose to invest in a combination of equity and debt fund alternatives (i.e. a balanced fund portfolio). This allows you to minimise your total risk exposure under the ULIP while still accumulating maximum rewards. Don’t forget about the ULIP plan’s built-in life insurance coverage, which considerably minimises your risk of financial difficulties and other unforeseen events.

The unit linked insurance plan is widely regarded as one of the greatest saving/investment products for maximising returns on investments. You have entire flexibility to invest your money in the funds of your choosing, based on your risk tolerance. In other words, ULIP investments are less vulnerable to market changes.

What is Invest 4G Plan by Canara HSBCLife Insurance?

The policyholder will bear the investment risk in the investment portfolio under this policy.

You are continuously striving for the finest in your life. Your signature is never settling for second best. As a loyal client, you deserve the greatest financial security and financial planning for your loved ones. This plan offers life insurance coverage to safeguard your family in the event of your untimely death, as well as the best value for your hard-earned cash.

No matter what stage of life you are in; a youngster just starting to save, a family man planning for a secure future for his children, planning for your own golden years, or even creating a legacy after you while safeguarding your wealth so that your personal financial goals are met even if you are not around. We’ve got a solution for you.

Invest 4G Plan is a Unit Linked Individual Life Insurance Savings Plan that you may tailor to your own objectives and changing needs. This plan provides you total control over your savings and insurance requirements with an unrivalled mix of Portfolio Management Options and flexibilities. This item is not a participating item.

Why Should You Go For it?

Invest 4G Plan is a Unit Linked Individual Life Insurance Savings Plan that you may tailor to your own objectives and changing needs. This plan allows you total control over your money thanks to an unrivalled mix of Portfolio Management Options and flexibilities. It also includes Life Insurance to cover your family in the event of your untimely death.

If you want to calculate the cover amount, you must try our ULIP calculator!

Why Invest 4G Plan is Worth Investing?

Canara HSBC Life Insurance Invest 4G is a unit-linked life insurance policy that may help you put your financial difficulties behind you. The policy provides both protection and savings, enabling you to save for your future goals while simultaneously giving life insurance cover.

1. Life Option and Century Option

The greater of the Sum Assured (minus any applicable Partial Withdrawal/ Systematic Withdrawal/ Milestone Withdrawal) or Fund Value will be paid as of the date of death claim notification and the policy will be terminated.

2. Care Option

As the Life Assured dies, a lump amount is paid immediately, and the remaining future premiums are reimbursed by the Company when they become due, with the Fund Value paid at maturity.

3. Maturity Benefits

You will get the Fund Value at maturity, depending on the current NAVs. Using the Settlement Option, you may also take the Fund Value in periodic payments at maturity.

4. Fund Options

This Plan allows you to manage and control your money in your own manner. There are 8 Unit Linked Funds to select from. You may assign your Premiums to any, all, or a mix of Unit Linked Funds based on your risk tolerance.

Don’t forget to check out the ULIP calculator for the most accurate calculations!

Alternatively, to manage and develop money, one may choose one of the four Portfolio Management Options listed below.

1. Systematic Transfer Option (STO)

Suppose you wish to participate in an equity-oriented fund but are concerned about market volatility and the danger of a lump sum investment. In that case, you may choose an STO, which allows you to join the stock market in a methodical way.

Your whole premium will be initially assigned to the Liquid Fund and then systematically moved monthly into any of the Unit Linked Funds – India Multi-Cap Equity Fund, Equity II Fund, or Emerging Leaders Equity Fund – that you choose.

2. Return Protector Option (RPO)

This option allows you to profit from the stock market while shielding your profits from potential equity market volatility. Starting with the second policy year, your profits from an equity fund based on your set ‘Target Appreciation’ are automatically moved to a lower risk Debt Fund through RPO. This protects your profits from additional market volatility.

3. Auto Funds Rebalancing (AFR)

You may use Auto Funds Rebalancing to keep your assets allocated in a specified proportion across multiple Unit Linked Funds regardless of market changes. Once enabled, it automatically rebalances your assets in various Unit Linked Funds to the allocation proportions you choose every three months.

4. Safety Switch Option (SSO)

As your policy approaches maturity, you may wish to avoid market fluctuations and protect your cash. The Safety Switch Option allows you to gradually transfer your assets to a reasonably low-risk Liquid Fund at the start of each of the previous four policy years.

Wrapping It Up

The Unit linked insurance plan allows you to securely balance your fund with equity and debt components and swap as the market moves, giving them a flexible approach to investment planning.

At the same time, the ULIP plan provides a financial safety net in the form of life insurance coverage, which protects your investments and life objectives.

Save your valuable time by using the ULIP calculator before buying any ULIP plan!