Insurance today is not just the market trend; it?s the requirement of the day. For an individual who is working daily to meet the two ends and the demands of his family, is equally responsible for a comfortable life after his death or when he is not in a position to carry out his duties.
When Insurance inculcated itself in the Indian Market, it focused on insurance plans which gave a assured return- those which were secure in terms where the money (premium) was being put up and how it would give assured benefits. It was the time of money back or cash back. Advertisement, marketing made people more aware of the market, insurance and insurance policies. Bubbling with these ideas, Insurance companies came up with the idea of ULIPs or Unit Linked Insurance Plans.
Unit Linked Insurance Plans or Ulips as they are called, are the insurance policies which rolled out the premium paid by the insurer in the stock market. As the market changed its way, so did the profits/benefits linked with the policy, thus giving more returns than the usual ones. Ulips too are classified in three categories ? Full Equity, Balanced and Partial Equity ones. In full equity, the entire premium was put in the stock market, in balanced only 50% was put in the market ? rest 50% was kept as in normal policy and in partial only a certain percentage of the premium was kept for equity market. Depending upon the choice of the insured person, the ?allocation of assets? is made.
Despite of the good points of ULIPS and the risk involved in them ? the big question is ? are Ulips better than the traditional insurance plans? It all depends upon you ? when you take a insurance policy and are na?ve, you depend totally of partially on your basic instinct. Same is the case with Ulips. When you take a Ulip, even if you are not aware of the stock market trends, you rely upon your basic income, forecasted income and your basic instinct. Calculated along these factors you choose the unit linked insurance plan. For those who are na?ve, can take the Balances Ulip plans which will give them better than a basic money back plan as well as the assurity of a good insurance plan. After all, the idea is to buy a insurance plan which gives the benefit of protect and gain along with life insurance?