This website is purely ACADEMIC in nature and NOT a stock market recommendation service or a tip provider. No live data or feeds are provided and all information is historic only. Information is provided for ease of understanding for the purpose of learning. Accuracy of definitions etc is not mantained. I am not a SEBI or IRDA registered.
Difference between revisions of "Unit Linked Insurance Plans"
Cooleo (talk | contribs) (Created page with "{{Alphabets}} Unit Linked Insurance Plans (ULIP) offers a mix of insurance and investment in a single policy. Hence, by paying a single premium, you will get both insurance c...") |
Cooleo (talk | contribs) |
||
| Line 8: | Line 8: | ||
Studies have shown that when insurance and investments are mixed, the investor will not be that successful with either of the domain. | Studies have shown that when insurance and investments are mixed, the investor will not be that successful with either of the domain. | ||
| − | Either the insurance cover would be low, or returns would be poor or in worse | + | Either the insurance cover would be low, or returns would be poor or in worse scenarios, both. |
Hence, in general, it is better not mix both. | Hence, in general, it is better not mix both. | ||
| − | A bit of study will usually allow you to pick a good [[Term Insurance]] and a good [[Mutual | + | A bit of study will usually allow you to pick a good [[Term Insurance]] and a good [[Mutual Funds]] scheme at a cost less than that of a ULIP. |
==Related Topics== | ==Related Topics== | ||
*[[Introduction to Insurance]] | *[[Introduction to Insurance]] | ||
Revision as of 10:28, 7 March 2017
| Home | Personal Finance | Mutual Funds | Equity |
Unit Linked Insurance Plans (ULIP) offers a mix of insurance and investment in a single policy.
Hence, by paying a single premium, you will get both insurance cover and also invest in the underlying schemes which help you create wealth.
Unfortunately, this might not be the right tool for everyone.
Studies have shown that when insurance and investments are mixed, the investor will not be that successful with either of the domain.
Either the insurance cover would be low, or returns would be poor or in worse scenarios, both.
Hence, in general, it is better not mix both.
A bit of study will usually allow you to pick a good Term Insurance and a good Mutual Funds scheme at a cost less than that of a ULIP.
Related Topics
- Insurance