RIDERS: Riders are additional or supplementary benefits that are bought along with a main life insurance plan. Some of the commonly offered riders are critical illness benefit rider, accident & disability benefit rider, waiver of premium rider etc. For ex. In case you opt for a Critical illness rider you get additional protection from 9 critical illnesses.
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Insurance companies levy rider charges in case you opt for riders.
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SWITCH: ULIPs not only allow you to invest your money in fund options with various debt – equity exposure but also give you the option to switch between different funds. For example, you can switch money from a fund with 100% equity to a balanced portfolio, which has 60 per cent equity and 40 per cent debt.
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Your insurance company may charge you a fee for switching your funds Generally only a limited number of fund switches are recommended in a year as a ULIP is a long-term investment tool therefore most of the companies allow a certain number of switches each year free of charge, with subsequent switches, subject to a minimal charge.
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TOP UP: One of the unique feature offered by ULIP is Top Up where you can make additional contribution over & above the regular premium.
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Insurance companies deduct a certain percentage from the top-up amount as charges. These charges are usually lower than the regular charges that are deducted from the annual premium.
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| SURRENDER: You may decide to surrender (premature partial or full encashment of units) your policy before the term of the plan. |
Surrender charge may be deducted for premature partial or full encashment of units wherever applicable, as mentioned in the policy conditions. These charges are levied as a percentage of the fund value or as a percentage of the premium.
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