2006-12-22 02:53:39 · 5 answers · asked by Raju R 1 in Business & Finance ➔ Insurance
It is a scheme promoted by Unit trust of India. Unit LInked Insurance Plan is commonly known as ULIP. Your investments in the said plan is apportioned into insurance premium and investment. In other words it is a combination of Insurance and mutual fund. Advantages: It is a two in one scheme. Two: The cost of insurance is high as the unit trust of india is not a insurer.
2006-12-22 03:18:33 · answer #1 · answered by cvrk3 4 · 0⤊ 0⤋
Not Unit trust of India but almost all the life insurance players in India are offering unit linked insurance plans now. It is just like a mutual fund linked with the insurance. suppose you want to save 10000 every year for ten years. So you target for a saving of one lakh. You want high returns too. Not the bank rate. And also think that you have a necessity after ten years. Considering the present growth rate of our economy the investment in units will give high return if the fund manager of your choice company is efficient. why it is different from mutual fund is vital. In this uncertnies you want a wealth after certain years. The insurance attached to the scheme assures that your dream amount will reach the hands of your affectionate ones even though some thing bad happens to the policy holder. Further it saves tax and its income too. The insurance coverage charges will be minimum and will be on the difference between the sum assured and the total unit NAV . You can also opt for critical illness, accident permenanat disability riders at little extra premium. you can have the liqudityafter 3 years with no charge on NAV. if u need more clarification contact me with u re mail id
2006-12-24 06:39:16 · answer #2 · answered by satheesh 4 · 0⤊ 0⤋
Unit-Linked Insurance Plan is a life insurance with an investment element which operates on similar principles to mutual fund.
In US, they called it Universal Life insurance or Variable Life insurance.
In Malaysia, we call it Investment-linked insurance. This type of insurance is available in the market since 1997.
Merits:
1) Flexibility to choose your own level of protection (the sum assured)
2) Option to choose from a wide variety of investment fund to invest in ( from high risk to low risk fund depending on your risk profile). The invsetment part of Tradisional Insurance is control by insurer.
Demerits:
a) The premium is not guaranteed. In Malaysia, the annual premium we pay for investment-linked insurance is call 'annual targeted premium'. For example, if you pay an annual premium Ringgit Malaysia 1,800 over the last few years, it does not mean you are paying the same amount from next year onwards.
b) The insurance charges is not guaranteed, for example, insurance charges for death benefit, total & permanent disability benefit, etc. The insurance company has the right to increase the insurance charges.
2006-12-22 13:17:39 · answer #3 · answered by malaysiainsuranceguide 3 · 0⤊ 0⤋
hi i will furnish you with some examples in random order: a million) A balanced existence (Prayer circumstances provides you you with that) 2) A happier existence (understanding what your purpose is) 3) a lot less desseaces (good issues and undesirable issues on your body are inspired/prohibited) 4) effective and rich society (following the comparatively cheap, enviremental and social regulations) those are some examples, yet as a muslim community we've plenty to develop. many human beings ignore what islam teaches..
2016-12-01 02:12:30 · answer #4 · answered by ? 3 · 0⤊ 0⤋
Unit plans are investment plans for those who realise the worth of hard-earned money. These plans help you see your savings yield rich benefits and help you save tax even if you don?t have consistent income.
demerits are nothing but , the performance depends the market fluctuations
2006-12-23 18:28:36 · answer #5 · answered by lic k 1 · 0⤊ 0⤋