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  • All about the ULIPs – new charges

    Unit-linked insurance products or ULIPs are perhaps the most widely discussed and written about financial products in recent times, and not all for the right reasons. First, there was the battle over who would regulate them, and then came a series of regulatory changes to reform the product.

    The changes over the past few months have [...]


    The unit linked pension plan is basically an insurance contract, which is designed to provide a retirement income for life. Your premiums are invested in units of the investment fund of your choice, based on the prevailing unit price. On vesting the value of your units will be used to buy your retirement benefits…


    A typical whole life policy runs as long as the policyholder is alive. In other words, the risk is covered for the entire life of the policyholder, which is why they are know as whole life policies. The policy monies and the bonus are payable only to the nominee of the beneficiary upon the death of the policyholder. The policyholder is not entitled to any money during his or her own lifetime, i.e. there is no survival benefit…


    The policy is basically a savings contract, which is designed to provide an income for life from retirement, with an option to take the lump sum elsewhere to buy the annuity, provided it is permitted by the prevailing regulations. Your commitment: You agree to pay a single premium or level premiums with installments due every quarter, half-year or year throughout the deferment period of the policy…


    Payment of cash lumpsums, each of which is a proportion of the basic sum assured, at a regular interval during the term of the policy. On survival up to maturity, a payment equal to the basic sum assured plus any bonus additions less the cash lumpsum paid earlier is provided. In case of the unfortunate death of the life assured within the term of the policy, the basic sum assured plus any bonus additions is provided. This is over and above the earlier payouts…


    Term insurance has lower initial premiums in the beginning, so you can afford higher levels of coverage when you’re young. This could be helpful in covering things like mortgage payments. Term life insurance premiums increase as you age and the policy generally doesn’t offer cash value or paid-up insurance. If you want insurance protection only, and not a savings and investment product, buy a term life insurance policy…


    Unit-linked insurance plans (ULIPs) have become something of a rage with their ‘promise’ of market-linked returns combined with the dual benefit of insuring your life from eventualities. To put it simply, ULIPs attempt to fulfill investment needs of an investor with protection/insurance needs of an insurance seeker. ULIPs work on the premise that there is a class of investors, which regularly invests its savings in products like fixed deposits…


    Insurance products that offer coverage to low-income households. A microinsurance plan provides protection to individuals who have little savings and is tailored specifically for lower valued assets and compensation for illness, injury or death.


    Insurance means promise of compensation for any potential future losses. It is used a s effective tools of risk management. It is a hedging instrument used as a precautionary measure. against contingent losses. This instrument is used for managing the possible risks of the future.