In this video, we discuss an important feature of unit linked insurance plan (ULIPs) called top up
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Edited highlights
0:07 In this video, we discuss an important feature of unit linked insurance plan (ULIPs) called top up
1:49 ULIPs are flexible life insurance plans and they are market linked
2:02 Policyholder gets units and the sum assured is in the form of units. The price of units changes with the market. At any point, one check the investment value
2:18 In some ULIPs, the sum insured is the higher of the sum insured or the fund value
2:24 There is another category of ULIP, where the sum insured is separate for death plus whatever is the fund value
2:41 Coming to ULIP top up, over time you might more savings that the regular ULIP premium for a particular financial year
2:48 Instead of buying another plan or the case maybe that the savings may not be enough to buy another plan but the savings need to be deployed
3:01 In the existing ULIP, you can invest more. This additional investment is called ULIP top up
3:32 In an ULIP plan you would have chosen an allocation to various ULIP funds such as equity fund, debt fund and money market fund
3:39 The top up investment in ULIP will be deployed according to the existing proportion of allocation to different funds
4:08 According to insurance regulator, IRDA, in case the top-up involves an increase of 25% or more of the existing premium, it has to be accompanied by an increase in death benefit in the same proportion
4:23 Also, you can not avail the top facility if you have missed out on paying your regular premium
5:35 Some life insurance companies accept upto 100% of the premium as top ups
6:33 Over time, your income is going up and you get lump sums such as pay hikes, increments, bonus and refund
