What is ULIP Renewal?

ULIP, or a Unit Linked Insurance Plan, is a dual benefit plan offering policyholder financial security and providing life security. A portion of the premium is contributed to the insurance plan. At the same time, the remaining amount is invested in various funds like equity, debt, or a combination of both, depending upon the policyholder’s preference.

Do you wonder what ULIP renewal meaning is? Worry not! This article covers the details regarding ULIP renewal.

While investing in a ULIP plan, you get the option to choose your premium payment mode. You can pay the premium for the ULIP plan as a single lump-sum payment or pay your premium periodically. Depending on the premium payment frequency, which can vary from monthly, quarterly, half-yearly or annually, you are required to pay the premium every month or as per the chosen frequency. Such payments are known as renewal premiums.

Paying the premium amount on time is essential, as the delay in payment can lead to additional charges on the plan, thus reducing the ULIP benefits. There are numerous ways to make the premium payment needed to renew your ULIP. Now that you know what is ULIP renewal, keep scrolling through to see the importance and ways to pay for ULIP renewal:

Importance of ULIP Renewal

Renewing the policy at the right time is essential for several reasons, as failing to do so can affect your financial plan adversely. Here are some of the importance of ULIP renewal:

Ensures that the Policyholder Reaps Benefits in Long Run

ULIPs offer the policyholder a protective life cover to protect them and their family during any unfortunate incident. Apart from this, ULIPs also offer investment opportunities that help the policyholder with capital appreciation. By renewing your ULIP policy timely, you can continue to enjoy these benefits in the long run and keep your financial safety net intact.

Helps to Keep Life Goals on Track

The inability to pay the renewal amount on time can lead to extra charges or discontinuation of the policy, which automatically leaves you with no investment to rely on or no insurance. Therefore, it is crucial to get your ULIP renewed on time.

Enjoy the Tax Benefits

ULIPs offer tax benefits to the policyholder. As per Section 80C of the Income Tax Act, 1961, the premium paid is deductible from your total income for that year. This reduces your taxable income and, in consequence, your tax liability. Renewing your policy will help ensure you enjoy the tax deduction benefits.

Ways to Renew your ULIP Policy

The premium for the ULIP policy can either be paid online or offline mode. In addition, there are several options available for you to get your policy renewed.

Cheque Payment

Paying the ULIP renewal amount via cheque is one of the most conventional offline modes. You can either drop the renewal amount cheque in the drop box of your insurance branch, or you can submit your cheque at the Insurer’s office.

ATM Payments

It is another offline ULIP renewal mode. The policyholders can pay their renewal premium through bank ATMs that the banking partner supports.

Bank’s Auto-Debit Facility

It is an easy way of paying the premium amount without missing any premium payment. In addition, you can activate the auto-debit facility on your bank account or Credit card, from which the amount would be automatically each time your payment is due.

Online Payment

To enjoy the benefits of ULIP, you can opt to pay for online premium payments. To begin with this, you need to register on your Insurer’s web portal. Afterwards, you can go online and make the premium payment using your internet banking portal or credit card.

You can prefer to pay the renewal amount via the following methods:

Third-Party Applications

The customer can alternatively pay renewal premiums through third-party mobile applications like UPI, PayTM, Google Pay, PhonePe and Amazon Pay.

Things to Consider for Online ULIP Renewal

A policyholder must consider the following things while opting for only ULIP Renewal.

• Know the amount of your premium and the due date. For you to complete the necessary tasks on time, businesses typically send payment reminders to your registered mobile number or email address.
• Verify that you have enough money in your bank account or credit card to complete the transaction.
• You could also renew your ULIP swiftly using this technique if your bank accepts mobile payments.

FAQs

Is ULIP good for the long term?

Numerous advantages, including high return, tax savings, life insurance, fund switching, investment flexibility, etc., are provided by the flexible features of ULIPs. Unquestionably, ULIP is recognised as one of the lucrative investment solutions to help policyholders achieve their long-term investment objectives.

How can I renew ULIP?

You have the choice of a premium payment method when you invest in a ULIP plan. You can either pay your premium in one large sum or regularly. You are obliged to pay the premium every month or in accordance with the set frequency, which may be monthly, quarterly, half-yearly, or annually. Since it helps to renew your ULIP plan, this payment is known as a renewal premium. If you want to keep receiving the advantages of your ULIP, you must pay your premium on time.