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Ulips 2.0: Insurers simplify product to woo buyers

Changes made to Ulips with regard to charges, sale strategy and transparency have made Ulips much easier to understand and buy.

March 14, 2017 / 07:01 PM IST

Unit-linked insurance plans (Ulips) are coming back into the industry in a different avatar. Changes made to Ulips with regard to charges, sale strategy and transparency have made Ulips much easier to understand and buy.

Among all the life insurance products, Ulips have the lowest charges both in terms of fund management fee as well as commission charges.

Rushabh Gandhi, Director Marketing and Sales at IndiaFirst Life Insurance said that from a customer standpoint, it is far more transparent than traditional products. "We have launched Wealth Maximizer plan to make it easy for customers to buy a Ulip. Since Ulips are long term products, his investment strategy may change over 15-20 years. We give them an option to switch funds as well choose from multiple funds including debt to equity and vice versa," he added.

Earlier, there was a set percentage of allocation between debt and equity which would remain constant. Now, as your age progresses, the debt-equity mix changes.