Cost Is The Key

With their low-risk and high-return possibilities and easy switch options, New-age Unit-Linked Insurance Plans (NULIPs) offer a great solution to investors who worry about volatility in the market and prefer to hedge their investments. Targeting the new fourth-generation or 4G population and lure them to start early on their investment journey, NULIPS have greatly reduced most charges, including premium allocation, policy administration, fund management, and mortality. Most insurers have capped the fund management charge at 1.35 per cent of the fund’s value. This is deducted before computing the net asset value of the fund. Nowadays many insurance companies are also returning the mortality charges at the time of maturity. Hence these tax-saving investments are also offering a good value for your money. It is but natural for any reduction or abolition of charges to sow doubts in...