123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Insurance >> View Article

Features Of Unit Linked Insurance Plan

Profile Picture
By Author: Terry Jonnathan
Total Articles: 148
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Unit linked insurance plan is a unique investment that gives you chance to enjoy twin benefits of protection through insurance and saving through investment. A part of such investment goes towards unit linked life insurance cover, while residual portion is invested in any investment fund such as stock, bonds etc. Investment in ULIP is denoted in units and is represented by the net asset value (NAV). The value of the policy varies according to the value of underlying assets. Invested amount of premium is pooled together after subtracting all associated charges and premium for risk cover to form a unit fund. A unit fund is a component of ULIP fund.

A unit linked insurance plan combines features and benefits of investment and insurance. Common features and benefits of unit linked life insurance plan have been discussed below:


• Depending upon risk level, customers can choose to invest funds in various schemes such as debt, balance and equity funds under unit linked life insurance plan. If policyholders choose debt plan, they have to invest their premiums in debt securities like bonds, treasury bills ...
... etc. In case of equity plans, they have to pay their premium by investing in equity market.
• Policy holders can switch their money from one fund to another during the term of the policy.
• Policyholders can make lump sum addition to investment at any time which is known as top up. With this addition, the risk cover will remain same but amount going into fund for investment will change.
• Policyholders can redirect current premium into any fund, in any proportion, irrespective of the fund in which it has been earlier invested.
• If policyholder does not pay premium in a particular year, no new units will be added to his fund. However, his fund will be reduced to the extent of additional charges such as administration, fund management etc.
• Policyholders can ship out of unit linked insurance plan at anytime by withdrawing the amount invested. The loss will be a nominal fee.

In order to choose right ULIP, it is essential to consider your saving budget and your risk bearing level. Also beware of any unscrupulous agents and if you choose any agent to instruct him to keep you regularly updated about your unit linked insurance plans. Many private and public organizations offers unit linked insurance products. It is essential to compare products offered by different companies on parameters such as risk, expenses, premium payments, returns etc. It is also advisable to be a knowledgeable investor and take help of unbiased, independent and experienced insurance agent to get best return from your ULIP investment.
Author Bio-
Terry Jonnathan is a specialist in article & blog writing. Working with Insurance industry as a consultant has enriched his knowledge base and his passion for writing got fire. Now he has researching on Unit linked insurance planand he has find interesting fact related to this like what is the ULIP plans & what is the best unit linked insurance plans for you for more info visit- http://www.sbilife.co.in/

Total Views: 303Word Count: 507See All articles From Author

Add Comment

Insurance Articles

1. Mastering The Brass Player's Secret Weapon - The Embouchure
Author: victor12johnson

2. Term Life Insurance
Author: Bimastreet

3. A Day In The Life Of An Insured Fiddle From Its Own Mouth
Author: micheljordan4

4. The Story Of The Oboe Instruments Evolution
Author: musicinstrumentsins

5. The Ethical Considerations Of Selling Musical Instruments
Author: victor12johnson

6. What Women Need To Know About Life Insurance
Author: Joffry Daniel

7. Technology's Impact On The American Music Industry
Author: micheljordan4

8. The Art Of Flute Making And The Science Behind It
Author: musicinstrumentsins

9. The Enchanting World Of Woodwind Instruments
Author: victor12johnson

10. Sustainability And Insurance: How Car Insurance Brokers In Uae Are Leading The Way
Author: Stephan Rose

11. The Composition Of Cello Music
Author: micheljordan4

12. Understanding The Different Types Of Clarinets
Author: musicinstrumentsins

13. Essential Insurance Plans For Music Store Owners
Author: victor12johnson

14. The Evolution And Cultural Significance Of Heritage Musical Instruments
Author: micheljordan4

15. The Ultimate Car Insurance Calculator For New Car Owners: What You Need To Know
Author: Stephan Rose

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: