2006-08-08 08:56:21 · 4 answers · asked by himanshu s 1 in Business & Finance ➔ Insurance
Universal life insurance policy is based on interest rates and stock market and has a risk of loss of premium.
Traditional life insurance or whole life has a guaranteed cash value usually less accumulative than a UL but with no risk of loss.
2006-08-08 09:34:06 · answer #1 · answered by Badkitty 7 · 0⤊ 1⤋
ULIP means Unit linked insurance plan.
Premia are paid in lumpsum or in instalments to insurance companies. A nominal charges are appropriated out of it towards insurance cost and balance is invested in market through units of that company. The companies usually call for the option of insured as how the relevant funds are to be deployed (i) equity (ii) securities (iii) balanced investment constituting in both equity and govt. securities. On maturity, the insured gets maturity proceeds as per NAV of units. Meanwhile in case of contingencies, the insured get insurance benefits as per terms chosen by insured.
Traditional insurance plans are normal insurance plans with (i) guaranteed or (ii) usual maturity benefits. The funds collected by insurance company are deployed according to their consolidated plans.
ULIP seems better option.
2006-08-10 01:30:26 · answer #2 · answered by PK LAMBA 6 · 1⤊ 0⤋
main difference is that ULIP invests based on the type chosen in equity market, half equity and half debt and debt only. they can either grow very high based on stock market and also have loss of capital if stock market falls. in the traditional insurance, these are guided by Govt regulation and they presently invest in GILT only.
2006-08-09 04:04:47 · answer #3 · answered by harrypotter 1 · 0⤊ 0⤋
Traditional life insurance is guaranted
2006-08-10 17:13:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋