ULIP or Unit Linked Insurance Plan was introduced back in 1971 and has been one of the most sought-after insurance plans in the country. It is a unique combination of a life insurance plan and an investment scheme. At the time of maturity, you will get the entire lump sum without any tax deductions. If anything happens to you before the duration of the plan is completed, your family will get the entire sum insured amount.
If you’re planning on purchasing a ULIP this year, you will get the following benefits:
a) Lock-in period
With a ULIP, you will follow a disciplined savings mechanism wherein you will have to invest a fixed amount every year for a period of minimum 5 years. This is a lock-in period and you cannot withdraw the money in this duration. This way, on the maturity of the insurance plan you will have a lump sum that can be used for a specific goal
b) Free-look period
This is a feature that is not available in most investment schemes. You get a free look period of 15 days with most ULIP plans. If you are unhappy with the plan or its terms and conditions, you can cancel it and your insurance premium will be reimbursed minus as deductions.
How to Check Eligibility for Ulip Online?
These days you can easily check the eligibility criteria for ULIP online on the insurance company’s website. There are three factors that help you determine if you’re eligible for a ULIP. These are:
a) Entry age criteria
The entry age varies from one plan to another and one insurance company to another. You should be of the minimum entry age of a particular ULIP in order to be eligible to purchase it.
b) Exit Age criteria
The exit age criteria are also different for each plan and vary from one insurance company to another. If your age is beyond the maximum exit age of ULIP plan then you are not eligible to purchase the plan.
c) Payment Rules
Each plan will have its payment structure. Before purchasing the ULIP, you will have to submit a few documents based on which the insurance company will decide if you will be able to adhere to the payment structure of the plan.
Documents Needed For Buying Ulip
You need to submit a set of documents at the time of purchasing a ULIP. These documents will help the insurance company verify your details against their eligibility criteria and approve the ULIP. The set of documents you need to submit are:
i) Income documents
These documents help the insurance company to assess the cover that should be provided to you. In most cases, an individual gets a cover close to 20 times of his/her annual income. This figure will vary from one insurance company to another. The necessary income documents are:
- a) Income tax returns of 2-3 years.
- b) Salary slips of previous 3 months.
- c) Bank statements of last 6 months with salary entries.
- d) Form 16 of the previous financial year.
- e) For businessmen and businesswomen, CA certificate is necessary.
ii) Address Proof
Providing address details is common practice for any major transaction. Similarly, you will have to submit your address details to purchase a ULIP. The standard address proof documents are:
- a) Credit card statement for last 3 months.
- b) Bank Statement for last 6 months.
- c) Passbook entries for last 6 months.
- d) Leave & License agreement.
- e) Driving License.
- f) Passport.
- g) Aadhar Card.
- h) Ration Card.
- i) Voter ID Card.
- j) Latest Electricity bill.
- k) Latest Telephone bill.
- l) Latest Water bill.
- m) Latest Gas bill.
iii) Identity Proof
It is also necessary to submit identity proof documents when you’re applying for ULIP. The accepted identity proof documents are:
- a) Passport
- b) Aadhar Card
- c) Voter ID Card
- d) PAN Card
iv) Age Proof
Since age is a major factor when applying for a ULIP, you need to submit valid documents to declare your age. The accepted documents are:
- a) PAN Card
- b) Aadhar Card
- c) Marriage Certificate
- d) Passport
- e) Voter ID Card
- f) Ration Card
- g) Birth Certificate
- h) School or College leaving certificate
- i) Driving License
Get ULIP Online Easily
Due to the advancement of technology and the subsequent benefits it has provided us, you need not visit an insurance company’s office to get more information about a ULIP in 2018. You can easily find all the information you need online on the company’s website or on third party websites. It is imperative that you thoroughly compare the different ULIP in India before purchasing one. You can easily do this on Coverfox.com and purchase the plan in a hassle-free manner.