When you think of investments, you want growth. When you think of insurance, you want protection. A ULIP gives you both in one smart plan. That’s why so many people consider it a go-to choice for long-term financial planning.
By investing in a Unit Linked Insurance Plan (ULIP), you’re not just chasing market returns but building a safety net for your loved ones as well. But have you ever wondered: what exactly happens to your ULIP if something happens to you?
The answer is reassuring — ULIPs are designed to ensure that your family gets financial protection through a death cover, along with the value of your investments. Let’s break it down step by step so you know exactly how your nominee is protected, how payouts work, and what role they play in the claim process.
Understanding ULIPs and death covers
Think of ULIP as a 2-in-1 plan — part insurance, part investment. Here’s how it protects your family in the unfortunate event of your demise:
Life insurance component:
ULIPs provide a life insurance cover, ensuring that the nominee receives the sum assured or the fund value, whichever is higher.
Investment component:
A portion of the premium is invested in equity, debt, or hybrid funds to generate long-term returns.
Death covers:
If the policyholder passes away, the nominee is entitled to a payout that typically includes the sum assured and/or the fund value.
Premium waiver benefit:
In some ULIPs, future premiums are waived after the policyholder’s death, and the policy continues to generate investment returns until maturity.
Additional riders:
Some policies offer riders such as accidental death cover and critical illness cover to enhance financial security.
This means your family doesn’t just get financial protection, they also benefit from the growth of your investments. So, explore ULIP plans, aligning with your goals like education, retirement and wealth creation and get quote!
