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Decide your goals
It is crucial to analyse your investment goals before you finalize the best ULIP plan in India you wish to buy. Multiple fund options to choose from allow the investors to research and analyse their investment horizon and insurance goals to zero in on the best plan. Whether to go for equity investing aggressive ULIP plan or a conservative plan that invests in low-risk debt funds depends on the financial goals of the investor.
Identify the insurance objectives
ULIP plan is a long-term investment hence you should identify your insurance objectives and choose the plan that helps fulfill them. To get the maximum from a Unit Linked Insurance Plan you plan to buy, it is imperative to understand different ULIP plans. Clarity of investment and insurance objectives plays a vital role in choosing the plan that aligns with your financial goals and provides financial security to the family in case of the policyholder’s untimely death.
Understand the features and benefits
Different ULIP plans offer different features and benefits. One should be well-versed with the features and benefits offered by the ULIP plans available in the market to choose the one that helps meet their financial goals. If you have a clear understanding of the pros and cons of different ULIP plans, it becomes easier to choose the one that suits your requirements.
Individual Death Claim Settlement Ratio
A crucial factor to consider while choosing a ULIP plan is the claim settlement ratio of the insurance company. The claim settlement ratio denotes the percentage of claims settled by a company out of the total claims received. Insurers with a high percentage are more likely to settle your beneficiary’s claim request, making them more reliable. HDFC Life’s individual death claim settlement ratio was 99.50%## in 2023-2024.
Solvency Ratio
The solvency ratio indicates whether an insurance company can honour claims in the future. The higher the ratio, the better. Most companies aim for a solvency ratio of at least 1.5. As per press release on half yearly performance ended December 31, 2024, HDFC Life’s solvency ratio was 1.88 as on December 31, 202410
