A Life cover for a particular tenure is Term Insurance; the Insurer promises to pay a specified pre-decided sum of money to the assigned beneficiary in the occurrence of the policyholder's death during the policy term.
The term Insurance plan is the pure protection plan that only covers the risk of death without any savings benefit connected to the plan. However, few plans have been introduced to pay back the premium at the end of the policy tenure if the policyholder survives. Every bread earner of the family must have adequate protection to secure their loved ones from monetary trauma that may result from an unforeseen event like death.
A Life Insurance that helps you create assured savings for your financial goals. The plan has a death benefit and also a maturity benefit. In case of death of the insured during the term of the policy, a promised death benefit is paid. Moreover, if the insured survives till the end of the policy tenure, a promised maturity benefit would be paid. Thus, endowment Insurance plans cover both death and maturity and help in creating savings.
ULIP is an integrated financial product that offers the finest of mutually worlds – Insurance and investment. ULIP or Unit Linked Insurance Plan is a fusion product provided by Insurance companies that provides the dual benefit of protection and capital appreciation. Being a market-linked investment product, ULIP gives its investors opportunities to earn from the capital market. ULIP is unique when compared to other Insurance products offered by the Insurance providers. Let’s understand how ULIPs are structured and how do they work.
When it comes to the ‘investment’ part, ULIP consortia investor's (policyholders) money and invests them into funds chosen by them; the total corpus funds are allocated into units. The units will be assigned to each policyholder in proportion to a subsidized amount. A per-unit value (net asset value) will increase or decrease depending on the fund's market performance.
