One of the key features enhancing the flexibility of ULIP plans is the top-up facility. This option allows policyholders to invest additional funds into their ULIP policy beyond the regular premium payments. Understanding how to effectively utilise this facility can help you maximise the ULIP benefits and tailor the policy to meet your evolving financial goals.
How to Use the Top-up Facility in your ULIP
The first step is to confirm that your ULIP plan offers a top-up facility. Most modern ULIPs include this feature, but the specific terms and conditions may vary.
Assess Your Financial Situation
Determine how much surplus you can afford to top up. It’s important to consider your overall financial goals and liquidity needs before committing additional funds to your ULIP policy.
Understand the Impact on Sum Assured
Depending on the terms of your ULIP plan, top-up contributions might increase the sum assured. Some plans automatically adjust the sum assured in proportion to the top-up amount, offering enhanced life coverage alongside increased investment potential.
Before proceeding, review the ULIP plan charges associated with top-ups. These could include allocation charges, fund management fees, and mortality charges. Understanding these costs will help you calculate the net benefit of your top-up investment.
Once you've decided on the amount, submit a request to your insurer. It can typically be done online or through a physical form. Ensure all necessary documentation is provided and keep a record of the transaction.
After making a top-up, regularly monitor the performance of your ULIP policy. You can switch funds or rebalance your portfolio if needed, depending on market conditions and your risk appetite.
Top-ups may extend the maturity benefits of your ULIP plans. The additional funds invested through top-ups continue to grow with your selected fund options, potentially providing a larger corpus at the end of the policy term. Regular monitoring and adjusting your investments as needed will ensure you stay on track to achieve your financial objectives, making the most of what ULIPs have to offer.
Disclaimers:
Unit Linked Insurance Products are different from the traditional insurance products and are subject to risk factors. The Premium paid in unit-linked life insurance policies are subject to investment risks associated with capital markets and NAVs of the units may go up or down, based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. IndiaFirst Life Insurance Company Limited is only name of the Insurance Company and _________________ (UIN__________) is only the name of the Unit Linked Life Insurance contract and does not in any way indicate the quality of the contract, its future prospects, or returns. Please know the associated risks and the applicable charges from your Insurance Agent or the Intermediary or policy document issued by the Insurance Company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. For more details on risk factors and terms and conditions, please read the sales brochure carefully before concluding the sale.
IndiaFirst Life Insurance Company Limited, IRDAI Regn No.143, CIN: U66010MH2008PLC183679, Address: 12th & 13th floor, North [C] Wing, Tower 4, Nesco IT Park, Nesco Center, Western Express Highway, Goregaon (East), Mumbai – 400 063. Toll free No – 1800 209 8700. Email Id:customer.first@indiafirstlife.com, Website :www.indiafirstlife.com, Fax No. +91226570600. Trade logo displayed above belongs to our promoter M/s Bank of Baroda and is used by IndiaFirst Life Insurance Co. Ltd. under license. Adv. Ref. No.:_________.
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