Friday, 29 January 2016

ULIPs Insurance Policy

As world is changing situation are also changing, risk of life is also changing. So,We need security for life. So, according to risk, different life insurance policies are there in the market. These policies varies according to age, economic status and situations. In the market, there term, Endowment,Unit linked, Money Back, Whole life are policies available. In this policies Term, Endowment, Whole life are the traditional policies. Let see the difference between ULIPs and Other traditional policies.

Traditionally Policies:

This Policy have less risk. Insurance Companies will investment majorly on bonds with our payments. This policies gives constant and fixed income. So the premium, Sum Assured are also fixed and can't be changed later. So, customer don't have any right in companies investments. Company hold rights where to invest. we don't any info on the charges. In term period, the charges may varies. We can taken loan on the policy. So customer don't have and don't need any information.

ULIPs Policies:

ULIPs Policies have high risk. Risk factor depends on market. As risk is high, even profits are more with right kind of risk.We have rights on the premium which we pay in ULIPs and we can decide on which share to invest.We can decide sectors and shares where company can invest. Company invest on majorly on equity markets. ULIPs , Mutual Funds have similarities. In ULIPs premium and life cover can be rised. Policy terms amount  and the charge don't change.Only after 3 years, money can be with drawn partially. All Charges on the policy will be well explained to the customer.

ULIPS= Life Insurnace + Investment( Mutual Funds)

People who have enough time and earnings will choose ULIPS

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