ULIP is a insurance plan, which is market linked. The way of investing the premium money is difference between ULIP and other insurance plans. General premiums like an endowment plan is invested in instruments, which are risk free like government securities and AAA rated corporate paper. And these ULIP premiums are invested in stock markets and in corporate bonds. So, it is attractive to individuals, because of this reason.
Benefits of risk protection and flexibility in investments are provided by Unit Linked Insurance Plan. Depending on the performance of the funds in the capital market, returns will be received by the investor in a ULIP. There is an option for an investor to invest in different schemes like equity funds, diversified funds, debt funds, balanced funds etc. Here the important thing is risk.
Transparency: If we compare with traditional investment plans, a transparent option is offered by the ULIP for the customers to plan their different life stage needs by market-led investments.
Savings and Insurance cover: Life insurance with savings at market linked returns are provided by ULIP. We can say ULIP as two in one plan because life insurance and savings are provided by the ULIP. It is not similar to the mutual-funds because those do not provide the life insurance cover.
Multiple Investment Options: There are multiple options for individuals to invest and it offers life insurance plan. Generally, ULIP comes with three variants like:
Benefits of risk protection and flexibility in investments are provided by Unit Linked Insurance Plan. Depending on the performance of the funds in the capital market, returns will be received by the investor in a ULIP. There is an option for an investor to invest in different schemes like equity funds, diversified funds, debt funds, balanced funds etc. Here the important thing is risk.
Transparency: If we compare with traditional investment plans, a transparent option is offered by the ULIP for the customers to plan their different life stage needs by market-led investments.
Savings and Insurance cover: Life insurance with savings at market linked returns are provided by ULIP. We can say ULIP as two in one plan because life insurance and savings are provided by the ULIP. It is not similar to the mutual-funds because those do not provide the life insurance cover.
Multiple Investment Options: There are multiple options for individuals to invest and it offers life insurance plan. Generally, ULIP comes with three variants like:
- Aggressive ULIPs in which 80 percent invest in equities and 20 percent in debt.
- Balanced ULIPs in which around 40 to 60 percent of investment in equities.
- Conservative ULIPs in which up to 20 percent investment can be done in equities.
The allocation of equity and debt are changed as per insurance company, these are generally designed options.
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