A type of insurance contract known as a unit linked insurance plan (ULIP) combines the security of a life insurance policy with the possibility of wealth growth. Under ULIPs, a portion of your premium is dedicated to your life insurance, and the balance is allocated to a fund which invests in either equity, debt, or a combination of the two.
How Does a ULIP Function?
A ULIP is a kind of plan that combines investing opportunities with insurance protection with. The death benefit, which is the amount given to the nominee in the event that the policyholder passes away while the ULIP is still in effect, is specified in the policy. If the policyholder lives out the whole duration of the policy, they are also entitled to the ULIP’s maturity value. This is the income the equity and/or debt investments in the ULIP have produced. The policyholder is typically offered the option of selecting which ULIP funds and asset classes would deliver these returns.
It should be noted that the designated death benefit will be paid to the policyholder’s nominee(s) even if the value of the ULIP investments falls below the sum insured specified in the ULIP.
The ULIP calculator is a simple and easy to use tool that you can use to predict the return you might get at maturity by entering a few details.
What Does It Mean to Renew a ULIP?
When you purchase a unit-linked investment plan, you can select your preferred payment method. You can choose to pay your premium in installments or all at once. You must pay premiums on a monthly basis or in accordance with the payment frequency, which may be on a quarterly, semi-annual, or annual basis. Due to the fact that it results in the renewal of your ULIP plan, this type of payment is known as a renewal premium. You must pay your premiums on time if you want to preserve your ULIP benefits. Thankfully, there are various ways to pay the fee necessary to renew your ULIP. Learn why renewing your ULIP is important and how to make your renewal payment by reading on.
The Best Ways to Renew Your ULIP
The ULIP premium renewal can be paid offline or online. There are many options for making this payment, and you can choose the one that suits your needs best depending on the payment options the Insurer has provided.
Payment via cheque
The most popular and convenient offline way of ULIP renewal is this one. You can mail your cheque to the life insurance company’s headquarters or leave it in a designated drop box at the company’s branch. The bank partner collecting centres are another option for sending the cheque.
Renewal With the use of Auto-Debit Service of Your Bank
To guarantee that you always remember to pay a subscription, you can renew your ULIP using this technique. With your bank account or credit card, you can enable automatic debit. Payment will be deducted automatically from your bank account or credit card when your premium is due.
Online Renewal with Payment
Paying your premiums online is another convenient and easy way to guarantee that you continue to gain benefits from your ULIP. Start by registering for the web portal of your insurer. After that, you can pay the premium online using a credit card or your internet banking login.
Customers can make payments online using the following methods, which are accessible on the website, customer portal, or mobile application, depending on the services provided by their life insurance company:
- Credit Card EMI on some credit cards Bank Debit Card Online Banking Universal Payments Interface
- Using Third-Party Applications to Renew
- If their life insurance company supports these services, customers can also pay renewal premiums for their policies using third-party mobile payment platforms like Paytm, Google Pay, PhonePe, and Amazon Pay.
Considerations for Online ULIP Renewal
Before renewing your online ULIP, consider the following points.
- Be aware of the cost of your premium and the payment deadline. Businesses frequently send payment reminders to your registered mobile phone number or email address in order for you to complete the necessary activities on time.
- Confirm that you have enough money in your bank account or credit card to cover the entire premium amount.
- You can also use this method to renew your ULIP if your bank enables mobile payments.
- Things to Think About While Renewing Your ULIP Offline
- These are some considerations to keep in mind while renewing your insurance offline.
- On the back of the check or demand draught, if that is your preferred mode of payment, write your policy number, name, and phone number.
- To ensure the transaction went smoothly, contact your bank and/or insurance company.