What You Need to Know About ULIP Plans

WHAT YOU NEED TO KNOW ABOUT ULIP PLANS SBI LIFE INDIA’S LEADING LIFE INSURANCE COMPANY

WHAT IS ULIP? ULIP - UNIT LINKED INSURANCE PLAN = INSURANCE + INVESTMENT ULIP IS A COMBO PLAN – IT COMBINES THE BENEFITS OF AN INSURANCE POLICY WITH INVESTMENTS, SO THAT THERE IS WEALTH CREATION TO HELP FULFILL YOUR MEDIUM- TO LONG-TERM FINANCIAL GOALS. IN A REGULAR INSURANCE POLICY, YOUR ENTIRE PREMIUM GOES INTO YOUR COVER. HOWEVER, IN A ULIP, YOUR PREMIUM IS DIVIDED INTO TWO PARTS: • THE FIRST PART IS A LIFE INSURANCE POLICY • THE SECOND PART INVESTS INTO EQUITY FUNDS, DEBT FUNDS OR BONDS

WHAT ARE THE FEATURES OF A ULIP? • TWIN BENEFITS OF RETURNS FROM MARKET-LINKED INVESTMENTS AND SECURITY OF LIFE COVER • LOWER FEES FOR FUND MANAGEMENT • PLAN OPTIONS BASED ON WHETHER YOU WANT MORE ASSURED RETURNS OR HIGH GROWTH • SIMPLE PLAN THAT IS EASY TO UNDERSTAND • NOMINAL PREMIUM PAYMENTS • ALLOWS PARTIAL WITHDRAWALS AFTER LOCK-IN PERIOD • TAX EXEMPTIONS • OPTION OF SINGLE PAYMENT OR SIP (SYSTEMATIC INVESTMENT PLANS)

WHY CHOOSE A ULIP? • SECURITY FOR YOUR FAMILY’S FINANCIAL FUTURE IN CASE OF THE HOLDER’S DEMISE • FLEXIBILITY TO INVEST BASED ON YOUR FINANCIAL GOALS AND RISK APPETITE • POTENTIAL FOR WEALTH CREATION • OPPORTUNITY TO FULFIL YOUR MEDIUM- TO LONG-TERM FINANCIAL GOALS • FUNDS AUTOMATICALLY REBALANCED TO COUNTER MARKET FLUCTUATIONS • EASY TO UNDERSTAND AND HASSLE-FREE PROCESS • HIGHLY AFFORDABLE, WITH LOW PREMIUMS AND LOW FEES • FREEDOM TO MAKE PARTIAL WITHDRAWALS TO FUND UNEXPECTED EXPENSES • TAX BENEFITS

HOW IS LIFE INSURANCE DIFFERENT FROM ULIP? Parameters Life Cover Savings Market-Linked Returns Premium Goes Into Tax Benefits Goal

Life Insurance Yes No No Life coverage Yes Financial security to family

Lock-in Period

Till maturity or demise of the holder

ULIP Yes Yes Yes Life coverage + wealth creation Yes Financial security to family + earn yields on investment Typically 5 or 6 years

TIPS TO CHOOSE THE BEST ULIP • CHOOSE A ULIP FROM AN ESTABLISHED, LEGACY FINANCIAL INSTITUTION • OPT FOR ONE THAT OFFERS A RANGE OF OPTIONS ACROSS ASSET CLASSES • SELECT A ULIP THAT CAN BE BOUGHT ONLINE AND ALLOWS PREMIUM PAYMENTS ONLINE • CHOOSE BETWEEN BALANCED AND GROWTH ULIPS DEPENDING ON YOUR ABILITY TO TAKE RISK AND YOUR FINANCIAL GOALS • OPT FOR A ULIP THAT HAS AUTOMATIC REBALANCING TO BE PROTECTED FROM MARKET SWINGS • CHECK THE LOCK-IN PERIOD AND THE TOTAL TERM OF THE POLICY • ENQUIRE ABOUT ALL THE CHARGES • ALWAYS ENSURE TO READ THE FINE PRINT BEFORE SELECTING A POLICY