Switch Investment Mix with ULIPs

Many of us reading this article have invested in ULIPs or planning to invest in it. We are familiar with ULIP as an investment tool that offers insurance also and know that the ULIP full form is Unit Linked Investment Plan. Today let’s understand the switching option offered by ULIP that is not much popular but is nevertheless, an effective feature. Here you will get to know how you can change your investment mix and that too without having to bear any additional costs.

Read more
Best ULIP Plans
  • Guaranteed Tax Savings

    Guaranteed Tax Savings

    Under sec 80C & 10(10D)
  • savings

    ₹1 Crore

    Invest ₹10k Per Month*
  • Zero LTCG Tax

    Zero LTCG Tax

    Unlike 10% in Mutual Funds

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

Top performing plans with High Returns*

Invest ₹10K/month & Get ₹1 Crore returns*

+91
View Plans
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company Tax benefit is subject to changes in tax laws
Get Updates on WhatsApp
We are rated
rating
58.9 million
Registered Consumers
51
Insurance
Partners
26.4 million
Policies
Sold

Being an ULIP investor, you are allowed to change the investment options under your plan. For example, if you find the market favorable, you can change exposure to equities. There is a huge count of people who are unaware of the switch feature available with ULIP. Approximately, only 20% know about this option and less than 5% access it. You might lose some major benefits by not utilizing this feature.



Switching requires a proper analysis of the market and needs the ULIP investor to create a perception of market and decide on his/her risk capacity. The triggering market level can be used to pull your asset allocation with every 10% change. A proactive policyholder is expected to yield good result with clever switching and systematic asset allotment.

Switching feature is free hence you don’t require worrying about the cost, and utilize the option for as many times you wish to. Earlier there was a predefined number set for free switches in a year but not anymore. The process of switching simply requires you to access your policy online on the insurance company’s website and alter the investment mix as desired. In case you are unable to check online, just submit a switch request form to the insurance company.

Switching decisions can be linked to Price to Earnings (PE) ratio of the index by the sophisticated investors. PE is derived on dividing index level by the earning per share (EPS). In April-June 2014-15 the Nifty EPS was Rs 376. The value of EPS depends on the quarterly results declared by companies. On 15 September, Nifty was at 8,040 and PE was 21.38 i.e. little above its average of 18.5.

You are free from any sort of tax implication when switching asset allocation of your ULIP.  Being an insurance product, ULIP offers tax-free long and short- term gains. In case of mutual funds, the tax-free label is applicable only on equity-oriented balanced funds and long-term gains from equity funds. In case of equity funds, short-term gains are taxed at 15%.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply

The change in market needs proper analysis for availing the switching feature. You could have increased your exposure to stocks a year ago when Nifty was at 5,285 and PE was 15.23. Currently, it is better to cut down exposure to stocks as the index has touched 8000.

Grow your wealth & meet your Financial goals

Systematically Invest in high growth plans with returns upto 18%*
View plans
Standard T & C Apply*
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Invest more get more
capital guarantee
Investment Calculator
  • One time
  • Monthly
/ Year
Sensex has given 10% return from 2010 - 2020
You invest
You get
View plans

Ulip plans articles

Recent Articles
Popular Articles
What is NAV in ULIPs?

28 Mar 2023

ULIPs offer the dual benefit of life coverage and investments
Read more
ULIP Plans for Child Education

16 Mar 2023

In a world full of uncertainties, securing the future of
Read more
Whole Life ULIP Plans

16 Mar 2023

Imagine your future and where you want to be in a few years
Read more
Tata AIA ULIP Plan Calculator

07 Feb 2023

A Tata AIA ULIP Plan Calculator is a premium and returns
Read more
Difference between ULIP and Traditional Plans

03 Feb 2023

ULIP or Unit Linked Insurance Plan offers two options to a
Read more
ULIP Calculator
A ULIP calculator is a specifically developed tool which helps the insurance buyers to calculate the premium
Read more
ULIP Fund Returns
ULIP or Unit Linked Insurance plan  provides a combined benefit of investment and life cover. According to the
Read more
7 Things to Know About the Tax Benefits of ULIPs
Nowadays, Unit Linked Insurance Plans, i.e., ULIPs, have evolved as the popular income tax saving investment
Read more
SBI Life Smart Privilege Plan - All You Need to Know About Benefits & Features
One of the most trusted life insurance companies in India, SBI Life has recently come up with a new SBI Life
Read more
11 ULIP Charges You Should Know About
Unit-Linked Insurance plan (ULIP) offers dual benefits of insurance and investment. Unlike traditional insurance
Read more

top
  • Zero% commission
  • No hidden charges
  • Expert Advice
  • 100% calls recorded
Invest ₹10k/month Get ₹1Cr
Tax free on maturity*
Mobile +91
*T&C Applied.
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL