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Showing posts from April 23, 2008

Traditional Life Insurance or Unit Linked Insurance Plan

Types of Insurance Plans - Traditional Life Insurance or Unit Linked Insurance Plan Insurance Plans - At a glance Broadly, insurance plans can be distinctly divided into ULIPs and traditional plans. A brief detail of both segments: Unit Linked Insurance Product ULIPs have gained high acceptance due to attractive features they offer. These include:    1. Flexibility          1. Flexibility to choose Sum Assured.          2. Flexibility to choose premium amount.          3. Option to change level of Premium /Sum Assured even after the plan has started.          4. Flexibility to change asset allocation by switching between funds    2. Transparency          1. Charges in the plan & net amount invested are known to the customer          2. Convenience of tracking one's investment performance on a daily basis.    3. Liquidity          1. Option to withdraw money after few years (comfort required in case of exigency)           2. Low minimum tenure.