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.
Life Insurance in India