Save Tax With U L I P How To Choose The Best ULIP Plan Unit Linked Insurance Plan (ULIP)

Under section 80C of the Income Tax Act, Life Insurance Unit Linked Insurance Plan (ULIP) of Rs one lakh on investment income can be exempted. In accordance with the provisions of the Income Tax Act ULIP is required to be invested for at least five years.

ULIP products are quite popular in the insurance market. Due to the popularity of these plans teasers and agents receive commission is sturdy, not the interest of investors.suffers heavy losses. Therefore, before taking the plan is essential to understand correctly.

How to work ULIP Plan: ULIP Plan benefits of investment to get insurance cover. These plans lock in five years - would be. Generally meets five times the annual premium for insurance cover. ULIP plan premium allocation charge from the premium fund monies remaining after the cut is made. There are various options in the Fund which may be invested in dept and equity in proportion to various risks and policyholders - based on the ability of the Fund may elect. Also from time to time can Switching various fund options. Returns of these policies depends entirely on the performance of fund and insurance companies do not guarantee that any of these plans.

ULIP plan, policy administration charges each month, Mortality charges, fund management charges, switching charges etc. are charged by fund units canceled.



If you are planning to invest more than 10 years.

. Even before you have adequate insurance cover for long-term and medium-term goals you only want to increase the cover.

. Insurance and you are not able to invest separately.

. You do not understand the various investment instruments.

. The market fluctuation risk reduction in equity from the dept or different fund options without switching to the tax burden.

The proposed Direct Tax Code: Direct Tax Code is proposed to be implemented from April 1, 2012. The proceeds will be received up to Rs 1.50 lakh. The lower limit is set to 2 all.

All limit -1. Up to Rs one lakh, Approved Funds (New Pension Scheme, Provided Fund, Super anutation gratuity etc.) may be obtained on the investment.

All Limit 2. The remaining discount of up to 50 thousand rupees, Life Insurance premiums (premiums, the insurance amount is not more than five per cent), health insurance premium and children's tuition fees will be obtained. So the Direct Tax Code is similarly applied all discount on the insurance premium - would find a limit on the basis of -2.

The obligation to get rid of long-term investments, return on investment and the necessary investment will be redeemed.He is able to.

You should also avoid over the years so that if you have selected the best of ULIP funds do not want to, you can not change it.

ULIP plan for tax savings, so if you're planning to deliberately make the decision. Lest you repent later?



First select your appropriate ULIP plans of various insurance companies individually expenses such as premium allocation charges schemes, Mortality harges, policy administration charges, fund management charges, switching charges, surrender charges etc. should compare. Additionally, various companies in the fund risk and returns of that fund should select the appropriate ULIP.