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Let us say you invest Rs. 10,000/- in a ULIP plan with NAV at Rs. 20/- per unit. There would be a number of charges associated with the ULIPs. Let us say they constitute 15% of your investment hence Rs. 8500/- Ideally speaking you should be getting 425 units but you may not get it fully. As there is insurance provided to you, the ULIP house would deduct a portion of your money for that. Lets say it is 2.5% then that would leave Rs. 8250/- for buying units. Which means you would get 412.5 units during your first year. Every year when you invest, after deducting all the charges units would be allocated to your account. The policy duration typically is around 10 years or more. You would be provided insurance coverage only during the policy tenure.
Assuming you had paid your premiums every year properly and at the end of 8 years you have 4000 units. Now let us say due to some unforeseen circumstances, the policy holder dies the ULIP company would pay the nominees (Our parents or spouse) the insurance amount plus the market value of the 4000 units that we hold. Lets say the unit price at that time is Rs. 45/- and your insurance was Rs. 2 lacs then your family would get Rs. 1,80,000/- (Fund value) + Rs. 2,00,000/- (Insurance Amount) which works out to a total of Rs. 3,80,000/-
Assuming we outlived our policy duration of 10 years and at the end of it we hold 5500 units and the unit price at that time is Rs. 55/- then we would get Rs. 3,02,500/-
Either ways we are getting a good yield on our investment. (Provided the equity markets fare well and the fund house does not suffer huge losses like what has happened now)
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∙ 12y ago
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What are unit linked and traditional linked policy?
ULIPS are basically Unit linked plans .e in these plans you get the benefit of insurance as well as investing in Equity and bonds or debt... whereas in case of TLIPS these are traditional linked plans wherein you get the benefit of endowment plans with that of ULIPS as well...!!
Differences between mutual funds and ulips?
Mutual funds and ulips are almost similar in one aspect - They invest in the stock market and the investors own units of the fund that have a face and market value. The difference lies in the fact that, ulips provide life insurance coverage to its investors by charging a certain fee on the investment whereas mutual funds do not provide insurance coverage. In simple terms, 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. I personally am a ULIP holder from Bajaj Allianz and have been very satisfied with their returns. I invest in an online ULIP called iGain which allows you flexibility of payment and involves no middlemen/paperwork. So its nice and easy to invest in.
Is advance premiums allowed in ulips?
It depends. Some ULIP houses allow it while some dont. check with your ULIP provider if they allow. In most cases they do allow advance premium payments
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
What is the definition of '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 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
How many company sells ulips?
Many companies in India sell ULIPs. Some of them are:HDFCICICI PrudentialLICSBIBajaj Allianzetc
Why ulip band by sebi?
SEBI did not ban ULIPs but they banned some Insurance companies from selling ULIPs, that's all
Why uLIP was banned by sebi?
SEBI did not ban ULIPs but they banned some Insurance companies from selling ULIPs, that's all
How do you invest in ulip?
By contacting an authorized agent who sells ULIPs. Most banks these days sell ULIPs in their branches. You can visit any bank and ask for ulip investment options and their customer care exec will be happy to assist you.
What are unit linked and traditional linked policy?
ULIPS are basically Unit linked plans .e in these plans you get the benefit of insurance as well as investing in Equity and bonds or debt... whereas in case of TLIPS these are traditional linked plans wherein you get the benefit of endowment plans with that of ULIPS as well...!!
What a comparative study says about ulips and mutual funds while investor have question.1 to plan for tax. 2. maximising the returns. 3. get insured only. or various combinations of the three.?
To plan for Tax - Yes ULIPs are a good optionFor Maximizing Returns - Mutual Funds are a good option. Choose a well managed equity diversified mutual fund schemeTo get Insured Only - Choose a pure term life insurance policy. Neither Mfs nor ULIPs are useful for pure insurance purpose
Is invesment in ulip is safe now?
Actually, you could start with a small investment. You can not say definitely that ULIPs are bad. They give you the benefit of investment and an insurance policy together. They are still good avenues to invest in. ULIPs are Unit Linked Insurance Plans which are meant to give you safe and high returns. I persoanlly am a ULIP holder from Bajaj Allianz and have been very satisfied with their returns. I invest in an online ULIP called iGain which allows you flexibility of payment and involves no middlemen/paperwork. So its nice and easy to invest in. Dont be afraid, go in for ULIPs with small amounts.
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
Differences between mutual funds and ulips?
Mutual funds and ulips are almost similar in one aspect - They invest in the stock market and the investors own units of the fund that have a face and market value. The difference lies in the fact that, ulips provide life insurance coverage to its investors by charging a certain fee on the investment whereas mutual funds do not provide insurance coverage. In simple terms, 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. I personally am a ULIP holder from Bajaj Allianz and have been very satisfied with their returns. I invest in an online ULIP called iGain which allows you flexibility of payment and involves no middlemen/paperwork. So its nice and easy to invest in.
What are ULIPs?
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 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 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 ulips in insurance?
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 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
