ULIP stand for unit linked insurance plans. Thes plans are involved with the share market of india. The amount paid by the policy holder is invested in the share market for buying the units. Usually one unit denotes one share. Some 30% to 40% of the premuim paid by the policy holder is taken as administration charges and part of the rest of ghe premium is taken towards the life cover of the policy holde. The rest o the amount will be investes on buying the shares for the policy. The minimum lock in period for these kinds of policies will be a minimum of 3 years and a maximum of 5 years. The lock in period denotes the period for which the premium should be paid by the policy holder towards the insuranc company without fail. After the ck in period it is the choic of the policy holder to pay the premium. If he pays the premium units will be bought on his policy. The policy holder canalso surrender his policy after the lockin period.
The benefit or profit in these kinds o policy ourely depends uopon the NAV(NET ASSET VALUE). This value denotes the peice of a single share or unit on the current day. If the policy holder has dwcided to surrender his policy he should check the number of units in his account(this will be notified by lic periodically or it csn be enquired at an lic office) and the value of a single unit then multiply them together to find the current total value. some of the plans available in the lic on this basis are
Money plus
Market plus
Fortune plus
Child future plus
We will discuss more on these policies in the future coming posts
I can see that you put a lot of hard work on your blog and written very good about LIC plan. I am impressed with content of your article..Good Job ! Keep It up !
ReplyDelete