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:

1. a) Income tax returns of 2-3 years.
2. b) Salary slips of previous 3 months.
3. c) Bank statements of last 6 months