A Unit Linked Insurance Plan is an insurance plan that offers you a life cover and is also an investment. In a Unit Linked Insurance Plan, part of the premium that you pay goes towards giving you a life cover and the remainder of the premium is invested for you by the insurance company. Read this guide to learn all about Unit Linked Insurance Plans.
Which smartphone to buy seems to be an everyday question of various Facebook groups. We are spoilt for choice in this day and age. This or that is a constant question. When it comes to investments, we seem to have a lot of choices as well. One question that often perplexes many insurance takers… Read More »
Now remember guarantees and stock markets don’t mix. The returns from the equity markets are not guaranteed. So in order to give you guaranteed returns these plans tend to shift their portfolio between debt and equity in such a way that that the plan’s highest NAV is locked by shifting a part of equity assets… Read More »
ULIPs basically work like a mutual fund with a life cover thrown in. They invest the premium in market-linked instruments like stocks, corporate bonds and government securities. Investments in ULIPs attract tax benefits under Section 80C. The returns and the lock-in period depend on the plan chosen.
ULIPs are similar to mutual funds except that they provide life cover, tax benefits and need to be kept for long term. On the other hand, term insurance is actually insurance where your dependents get sum insured in case you die, but nothing if you outlive the insurance term. Both term plan and ULIP do… Read More »
ULIPs have higher costs associated with it in the initial years because of the policy charges. Also, market fluctuations will tend to provide lower amount of returns as the amount invested would be slightly lesser in the first couple of years in the policy. However, overall charge structure for the term comes down substantially after… Read More »