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While Mutual Funds have their advantages, ULIPs come with the benefit of Insurance cum investment. ULIP stands for UNIT LINKED INSURANCE PLAN. They are a combination of Insurance and Investment plan. You could start with a small investment. ULIPs give you the benefit of investment and an insurance policy together. They are good avenues to invest in.
A ULIP is nothing but Mutual Fund + Insurance. Apart from the fact that ULIPs provide Life Insurance, the working of a ULIP is very similar to how Mutual Funds work. They both invest in the Stock Market.
Wiki User
∙ 13y ago
Wiki User
∙ 12y agoAs per my knowledge. commission on Ulip is 10% and 4% Renewal Commission for agent.
I don't agree with 15-70 percent. commission. writer here is misleading
Advantage About MF :
01. Short Term to Medium Term Investment 02. Fund Management Expenses will be less 03. Equity Mutual Funds has some income tax benefits (In India Equity Mutual Funds are exempted from Income Tax) 04. Varieties of Mutual funds / Sectoral Funds are available 05. Incase of open end mutual funds, having easy liquidity 06. Growth oriented investment 07. Investor can Easy to understand 08. Investor who can view only Investment can go for Mutual Fund
Advantage About ULIP : 01. Medium Term to Long Term Investments 02. Fund Management Expenses will be High 03. Insurance Maturity Amouts are Tax Free in the hands of the investor (In India) 04. Not much of varieties are available 05. In General ULIP Products has min of 3 years lock in period 06. Value based investment 07. Need to explain the benefits of the investor and make them understand about hidden charges and benefits involved 08. Investor who would like to protect his life / health and also make some money, can invest in ULIP
Regards
Ramkumar S
Insurance is NOT an investment. ULIPs are definitely NO-NO.
because ULIPs are being mis-sold (mis-sold being a polite way of saying con job) like no financial product has ever been mis-sold in this country. In India, ULIPs are a product which have been cynically designed to maximise profits to insurance agents and insurance companies while hiding the true numbers from investors. Nominally, a ULIP is a product that combines insurance and investment characteristics. In reality, they combine an extraordinarily high cost structure (meant primarily to feed agent commissions) with a non-standardised revelation of expense so that any meaningful comparison of investment performance between different ULIPs or between ULIPs and mutual funds is impossible. In other investment products, either there are no agent commissions (as in bank FDs) or agent commissions range from 0.25 per cent to 2 or 3 per cent (as in case of Mutual Fund Advisors). In ULIPs however, commissions range from 15 per cent to (hold your breath) around 70 per cent and are typically 25 per cent. And for some bizarre reason, this is considered acceptable by everyone concerned
Basically, ULIPs are expensive and opaque mutual funds disguised as insurance. This permits insurance companies to circumvent the strict transparency, expense, and commission-related laws that govern mutual funds. It also enables them to escape the scrutiny of SEBI, which has historically been a tougher regulator than IRDA.
Insurance is a great idea and most of us need it. But we need real insurance, which is to say term insurance. Here's what you should do. Make a liberal estimate of how much money your family will need if you die suddenly. Shop around and buy the cheapest term insurance you can find. You'll be stunned at how cheap term insurance is and also at how difficult it is to buy (The quickest way to get rid of an insurance agent is to say that you're interested only in term insurance). You probably won't be able to think logically about insurance as long as you don't realise that it's an expense. It's a necessary expense, like buying a helmet or going to a doctor, but it's not an investment. You need both insurance and investment. To get the best deal in both, don't mix them up.
Best of luck,
Srikanth Shankar Matrubai
visit my blog http://goodfundsadvisor.blogspot.com for more details
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Which is the best ULIP plan in India?
Right now, LIC's Wealth Plus ULIP policy is having moderate to reasonable Nav, in comparison to performances of private insurers' ULIP policy.
How do you make questionnaire on consumer awareness about ulip insurance plane?
icici mutual fund
What is a ULIP?
In terms of functioning, ULIPs are very similar to Mutual funds. A ULIP can be considered as a type of mutual fund that provides you insurance benefits and that too, to the extent you want. The money you invest would be converted into units just like in MFs and invested in the stock market and also you would be charged an amount out of your premium to provide you the insurance coverage you want. For a layman we can assume that ULIP = Mutual fund + Insurance
Is ULIP a combination of insurance and mutual fund?
ULIP stands for UNIT LINKED INSURANCE PLAN. They are a combination of Insurance and Investment plan. You could start with a small investment. ULIPs give you the benefit of investment and an insurance policy together. They are good avenues to invest in. ULIPs are Unit Linked Insurance Plans which are meant to give you safe and high returns. Yes- From a layman perspectiveULIPS can be considered a combination of Insurance and Mutual Funds
What is common in Mutual Fund and ULIP?
ULIP stands for Unit Linked Insurance PlanIn terms of functioning, ULIPs are very similar to Mutual funds. A ULIP can be considered as a type of mutual fund that provides you insurance benefits and that too, to the extent you want. The money you invest would be converted into units just like in MFs and invested in the stock marketand also you would be charged an amount out of your premium to provide you the insurance coverage you want. For a layman we can assume thatULIP = Mutual fund + Insurance
Is ULIP better than a combination of Mutual fund plus term insurance?
No. The combination of a Mutual Fund + Term Insurance is better than ULIPs
What is the ULIP and IRDA?
ULIP stands for Unit Linked Insurance Plan In terms of functioning, ULIPs are very similar to Mutual funds. A ULIP can be considered as a type of mutual fund that provides you insurance benefits and that too, to the extent you want. The money you invest would be converted into units just like in MFs and invested in the stock market and also you would be charged an amount out of your premium to provide you the insurance coverage you want. For a layman we can assume that ULIP = Mutual fund + Insurance IRDA stands for Insurance Regulatory and Development Agency. It supervises the Insurance sector in India
Definition of ulip?
ULIP stands for Unit Linked Insurance PlanIn terms of functioning, ULIPs are very similar to Mutual funds. A ULIP can be considered as a type of mutual fund that provides you insurance benefits and that too, to the extent you want. The money you invest would be converted into units just like in MFs and invested in the stock marketand also you would be charged an amount out of your premium to provide you the insurance coverage you want. For a layman we can assume thatULIP = Mutual fund + Insurance
WhAT is meaing of ulip products?
ULIP stands for Unit Linked Insurance PlanIn terms of functioning, ULIPs are very similar to Mutual funds. A ULIP can be considered as a type of mutual fund that provides you insurance benefits and that too, to the extent you want. The money you invest would be converted into units just like in MFs and invested in the stock marketand also you would be charged an amount out of your premium to provide you the insurance coverage you want. For a layman we can assume thatULIP = Mutual fund + Insurance
What is the full form of ulip?
ULIP stands for Unit Linked Insurance PlanIn terms of functioning, ULIPs are very similar to Mutual funds. A ULIP can be considered as a type of mutual fund that provides you insurance benefits and that too, to the extent you want. The money you invest would be converted into units just like in MFs and invested in the stock marketand also you would be charged an amount out of your premium to provide you the insurance coverage you want. For a layman we can assume thatULIP = Mutual fund + Insurance
What is ulip plan?
ULIP stands for Unit Linked Insurance Plans. These are a combination of mutual funds and insurance. The investment is split up into units and invested in the stock marketlike mutual funds. At the same time, based on the amount invested, the investor gets an insurance coverage in case of any mishap. This way an investor stands to gain two things in one shot, investment in the stock market as well as insurance protection.
What type of insurance would be most affordable and still provide death benefits if one of owners dies?
I think ulip is the best option in insurance. I prefer Aegon Religare for ulip plans.
