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Investment Amount

Life Cover Lock-in period Portfolio holdings Tax benefits Time Horizon

Regular Income

ULIPs No restriction on investment amount. Investor can modify as well Yes 3 year Regular disclosure not required Yes for all plans Benefits only in long term, generally over a period of 10 years No such provision

Mutual Funds Minimum amount is decided by the fund house No None Half year disclosure is mandatory Yes conditions apply Products offering short term duration to as long as one wants to remain invested. Dividend pay-out at regular intervals can provide income

Nature

Mortality charges

Transparency

Multiple investment options Investment Risk Returns

ULIP Traditional Insurance Provides protection cover. Aimed primarily to encourage savings and have adequate Works as tool for wealth protection or life cover. generation. Traditional policies are Investment risks associated with considered risk-free, as they the capital markets. provide fixed returns in case of death or maturity of the term Mortality charges increase over In traditional products the mortality time, according to policy holders chares are averaged. It is known as age. This is known as natural level premium. premium All activates will be discoursed Firm will not disclose the break up of risk premium and investment amount, value of investments. Policy holder can choose the fund Investments are made solely at the type of as per his/her risk aptitude discretion of the insurance company Borne by the police holder After deduction of allocation charges Policy owner invest the remaining premium in the fund they choose. It can be a low risk fund such as fixed income fund, or other equity funds which are higher risk. Policy owner may get higher return or cash value when the market is bullish, but all the return might be wiped away when market turns bearish. The investors can immediately switch to secure investment mode in such cases. Return shield also can secure similar return as traditional product, if the market is bearish Upwards potential are available Borne by the insure At least 85%need to be invested in debt instrument which can only give a fixed return. Reversionary bonusaccumulated until the death or maturity and paid whichever takes place first. The non-reversionary bonus policyholder is allowed to encash it The bonus is declared in yearly basis. Once it is declared, it is said to be vested. The amount of bonus depends upon profits made by the company and the declaration of the bonus at the sole discretion of the company.

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