Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is Ulip based insurance plan?

0
Posted

What is Ulip based insurance plan?

0

Insurance companies are no longer focused on insuring your life, health & assets. They are more eager to manage your investments. Almost 60% of their new insurance sales are ULIPs. Their profitability depends largely on attracting investments in the garb of life cover. The most common misconception of retail investors is the belief that insurance is a part of one’s portfolio. Objective of ULIPs: Triple benefit: Life Cover, Tax Benefit and Capital Appreciation. Objective of MFs: Good returns, Various investment choices, Tax benefit in ELSS. Tenure of ULIPs: Minimum tenure of 5 yrs. Max. term depends on age. 3 yrs. lock-in Tenure of ULIPs: Open ended- no tenure. Close ended-fixed tenure. ELSS- 3 yrs. lock-in Investment amounts in ULIPs: Determined by the investor & can be modified as well, but high. Investment amounts in MFs: Minimum amount is determined by the fund house. As low as Rs.500 Expenses for ULIPs: Agents get very high commission so initial charges are high. Some of them are:

Related Questions

Thanksgiving questions

*Sadly, we had to bring back ads too. Hopefully more targeted.