Covering risk while earning money
5 years ago

Covering risk while earning money

The Hindu  

There are a variety of life insurance policies. While term policies cover only death risk and for a given period, whole life policies offer longer coverage periods with options like return of premium and other add-ons. This return, or bonus, is a share of the returns that the life insurance company realises when it invests your premium and is usually more modest than even bank fixed deposit interest. We can infer that the risk profile of this investment is pretty different from other life insurance policy bonuses because, in the case of the latter, the funds are invested according to prudential norms laid out in the insurance regulations designed for the safety of funds and not to maximise returns. Capital market investments in equities, typically, are long term in nature so you should also take a long-term view on your ULIP investment strategy given that there is a five-year lock-in period anyway.

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History of this topic

Investment word of the day: Unit-linked insurance plans — how ULIP works, pros & cons and more
2 days, 7 hours ago

Investment word of the day: Unit-linked insurance plans — how ULIP works, pros & cons and more

Live Mint  

Investment word of the day: Imagine you have a sum of money and you are confused about whether to use it for investment or as a measure to protect finances from unforeseen circumstances. They come with a mandatory five-year lock-in period which motivates long-term savings and ensures deep commitment to wealth accumulation,” according to Siddharth Maurya, MD & Founder of …

A Guide for New-age Investors to Master Stock Market Strategies
1 year ago

A Guide for New-age Investors to Master Stock Market Strategies

The Quint  

ULIPs vs Direct Stock Market Investments ULIPs offer a unique combination of life insurance coverage and investment opportunities. On the other hand, direct stock market investments mean buying shares of a company straight from the stock market, making you a part-owner of the company. While direct stock market investments provide greater control and potential for higher returns, they carry higher …

Can a high sum-assured Ulip offer better cover, returns?
1 year, 2 months ago

Can a high sum-assured Ulip offer better cover, returns?

Live Mint  

Most insurance policies that mix life insurance and investment offer neither adequate life cover nor good investment returns. The sum assured multiple in TULIPs could be 100-200 times of the annual premium, depending on the combination of the policyholder’s age, policy term and premium payment term). Data from Kotak Life Insurance shows that a 35-year-old paying a premium of ₹1 …

Pramerica Life Insurance launches new age ULIP designed for the new generation’s financial ambitions. Details here
1 year, 6 months ago

Pramerica Life Insurance launches new age ULIP designed for the new generation’s financial ambitions. Details here

Live Mint  

Pramerica Life Insurance Company has announced the introduction of its latest offering, “Pramerica Life Super Investment Plan ”. On the occasion of the launch Pankaj Gupta, MD & CEO, Pramerica Life Insurance, said, “Modern India is aspirational and is looking out for new age life insurance products that support changing lifestyles and aspirations. Pramerica Life Super Investment Plan is designed …

Which investment options are available other than mutual funds to fund your children’s higher education?
1 year, 7 months ago

Which investment options are available other than mutual funds to fund your children’s higher education?

Live Mint  

The tagline “Mutual Funds Sahi Hai” has seemed to catch the fancy of many investors with many of them even planning their children’s education around mutual fund investments. Start with buying life insurance Parents planning their funds to pay for their children’s future education must first consider buying a life insurance policy. Guaranteed funds : A life insurance policy ensures …

Planning to invest in ULIPs? These are the factors to consider before choosing a plan
2 years, 1 month ago

Planning to invest in ULIPs? These are the factors to consider before choosing a plan

Live Mint  

ULIP, a hybrid financial product that offers a mix of insurance as well as financial growth, appears to be the best of both worlds: insurance and investing. “Every financial product in the market exists because there are underlying needs and varied customer personas that require those instruments,” says Subhrajit Mukhopadhyay, Executive Director, Edelweiss Tokio Life Insurance, while talking about ULIPs. …

Investment And Insurance: What Is Unit-linked Insurance Plan That Offers Dual Benefits?
2 years, 1 month ago

Investment And Insurance: What Is Unit-linked Insurance Plan That Offers Dual Benefits?

News 18  

While presenting the Union Budget 2023, finance minister Nirmala Sitharaman announced the proposal to limit income tax exemption from proceeds of insurance policies with very high value. 5 lakh shall be exempt.” An individual will be liable to pay tax on the maturity amount of life insurance policies where the aggregate annual premium exceeds Rs 5 lakh. ULIP or Unit …

Why one should not invest in ULIPs
2 years, 3 months ago

Why one should not invest in ULIPs

Live Mint  

When it comes to investment, ULIPs are frequently recommended. ULIPs come with significant upfront charges for setting up an account, higher premium rates than other types of insurance, and fund management fees. Furthermore, regulatory bodies set regulations on ULIPs which limit the fund investments offered by the insurers. This makes ULIPs a less flexible option when compared to other types …

Why do Indians prefer insurance to mutual funds?
2 years, 5 months ago

Why do Indians prefer insurance to mutual funds?

Live Mint  

The Reserve Bank of India published household financial savings data based on select indicators last month. In 2020-21, the new business premium that came in from selling term insurance policies stood at just 0.33% of LIC’s new business premium during the year. Given that LIC sold nearly three-fourths of all new individual policies sold in India in 2020-21, what’s true …

ULIPs: Is it possible to maximize investment returns with right strategy?
2 years, 6 months ago

ULIPs: Is it possible to maximize investment returns with right strategy?

Live Mint  

Investing in equity can help you achieve the goal of long-term wealth creation. A ULIP gives you many benefits, right from a life cover and market-linked investments to tax benefits and several insurers even offer free fund switching. With the right investment strategy, you can maximize the benefits from your ULIP further and optimize the returns you earn over the …

What are ULIPs? How do they work? Are they good for long-term investment?
3 years, 5 months ago

What are ULIPs? How do they work? Are they good for long-term investment?

Business Standard  

When you think of investing your money, the first thought that you have is investing in conventional instruments like fixed deposits or gold. However, you might want to check out more modern financial tools like ULIPs, which offer better returns and also offer insurance coverage. Premium allocation One part utilised for insurance Another part used for investing in funds The …

5 myths around ULIPs that must be debunked right away
3 years, 8 months ago

5 myths around ULIPs that must be debunked right away

Hindustan Times  

We live in a world that is flooded with financial instruments. Being a combination of insurance and investment, a ULIP can help you secure you and your family’s financial life goals. These plans provide you a life cover, and at the same time, offer an opportunity of market linked wealth creation. Contrary to general perception, ULIPs are affordable and offer …

Decoding unit-linked insurance plans
5 years, 10 months ago

Decoding unit-linked insurance plans

Live Mint  

Unit-linked insurance plans or Ulips are products sold to you by insurers which area combination of a pure life insurance policy and a marketlinked investment product. A part of the premium you pay to your insurer, certain portion gets allocated to equity or debt funds,” said Dheeraj Sehgal, chief institutional business officer, Bajaj Allianz Life Insurance. “You are allowed to …

Ulips: Here’s all you need to know
6 years, 3 months ago

Ulips: Here’s all you need to know

Live Mint  

Unit-linked insurance plans have been rightly bashed by financial planners for their cost structure. However, the online Ulips have either reduced it to minimal or completely removed charges, except fund management cost and charges for the insurance cover. Comparable fund performance: Though the objective of a fund under Ulip was similar to its corresponding mutual fund, the fund performance was …

‘Online ULIPs will eventually become pull products owing to performance’
6 years, 9 months ago

‘Online ULIPs will eventually become pull products owing to performance’

Live Mint  

Tarun Chugh, who joined Bajaj Allianz Life Insurance last April, wants to focus on pension, health and savings products and develop a multi-distribution channel company. During early days, Bajaj Allianz Life Insurance was among the top 3 private sector insurance companies, but it has lost its market share now. As someone from the insurance industry right from the time it …

Productcrack | Unit-linked insurance plan (Ulip)
13 years, 7 months ago

Productcrack | Unit-linked insurance plan (Ulip)

Live Mint  

Name of the product AEGON Religare Life Insurance Co. Ltd’s iMaximize Plan. First, to get the higher of the sum assured, the fund value and 105% of all the premiums paid. As soon as the fund value in accelerator fund equals or exceeds 110% of all the premiums paid, the excess amount is switched to a secure fund, which is …

ULIPs: insurance regulator scores a point
14 years, 9 months ago

ULIPs: insurance regulator scores a point

The Hindu  

Through an ordinance issued on June 18, the Central government amended, in one stroke, the Reserve Bank of India, Insurance, Securities and Exchange Board of India and Securities Contract Acts just to clarify that unit-linked insurance products come under life insurance business. Between 1990 and 1999, new premium income under life insurance grew at an average rate of 17 per …

ULIP hoax: Make Rs 6 lakh in six years
16 years, 3 months ago

ULIP hoax: Make Rs 6 lakh in six years

News 18  

First things first, let’s get the concept of ULIP clear. The charges are usually high in the first three years, which could be anywhere between 20 to 100 per cent in the first year! “He should stay invested ideally for the whole policy tenure or should consider paying a lesser premium after a few years.” says, PV Subramanyam, financial domain …

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