ULIP is a product offered by insurance companies that, unlike a pure insurance policy,gives investors both insurance and investment under a single integrated plan.
BREAKING DOWN 'Unit Linked Insurance Plan-ULIP'. A unit linked insurance plan acts just like a savings vehicle, but also has the benefits of an insurance contract. When an investor purchases units in a ULIP, he or she is purchasing units along with a larger number of investors, just like an investor would purchase units in a mutual fund Unit-linked insurance plan. From Wikipedia, the free encyclopedia. A Unit Linked Insurance Plan (ULIP) is a product offered by insurance companies that, unlike a pure insurance policy, gives investors both insurance and investment under a single integrated plan. Since ULIP (United Linked Plan) returns are directly linked to market performance and the investment risk in investment portfolio is borne entirely by the policy holder, one needs to thoroughly understand the risks involved and one’s own risk absorption capacity before deciding to invest in ULIPs. Investment-linked insurance policies (ILPs) have both life insurance and investment components. Your premiums are used to pay for units in investment–linked sub-fund(s) of your choice. Some of the units you buy are then sold to pay for insurance and other charges, while the rest remain invested. ILPs provide insurance protection in the event of death or total and permanent disability (TPD), if included. Rating Newest Oldest. Best Answer: Index linked normally means that the maximum amount the insurance company will pay for the complete rebuilding of your house if it is destroyed (most often by fire, but it could be a gas explosion or other accident) is linked to an index. Your premium is not linked to this index. The insurer will decide what premium to charge each year, and this depends on a lot of factors, one of the most important being competitive pressure. Your premium could go down even if the sum insured has gone up. A Unit Link Insurance Plan is basically a combination of insurance as well as investment. A part of the premium paid is utilized to provide insurance cover to the policy holder while the remaining portion is invested in various equity and debt schemes. Since ULIP (United Linked Plan) returns are directly linked to market performance and the investment risk in investment portfolio is borne entirely by the policy holder, one needs to thoroughly understand the risks involved and one’s own risk absorption capacity before deciding to invest in ULIPs. ULIP is an abbreviation for Unit Linked Insurance Policy. A ULIP is a life insurance policy which provides a combination of risk cover and investment. The dynamics of the capital market have a direct bearing on the performance of the ULIPs. In a ULIP policy, the investment risk is generally borne by the investor. Keywords Unit-linked insurance is an endowment policy in which the premiums are invested in a unitized insurance fund. These types of policies are mainly found in the UK. Low-cost endowment policies aim to pay off mortgage debts.  Unit linked insurance plans allow for the coverage of an insurance policy, and provide the option to invest in any number of qualified investments, such as stock, bonds or mutual funds. A unit linked insurance plan acts just like a savings vehicle, but also has the benefits of an insurance contract. Participating policies are insurance policies which provide both guaranteed and non-guaranteed benefits. The sum assured is a guaranteed benefit and is paid when the policy matures or upon the death of the insured. Non-participating policies pay just the sum assured when the policy matures or upon the death of the insured. The policyholder does not participate or share in the profits of the insurance company’s participating fund and is not entitled to any
http://www.investopedia.com/terms/u/unit-linked-insurance-plan.asp https://en.wikipedia.org/wiki/Unit-linked_insurance_plan http://www.moneysense.gov.sg/understanding-financial-products/investments/types-of-investments/investment-linked-insurance-policies.aspx https://uk.answers.yahoo.com/question/index?qid=20070322104356AAOQ5QB https://en.wikipedia.org/wiki/Unit-linked_insurance_plan http://www.moneycontrol.com/glossary/unit-linked-insurance-plans/what-is-a-ulip-_4177.html http://www.diffen.com/difference/Endowment_vs_Whole_Life_Insurance http://www.investopedia.com/terms/u/unit-linked-insurance-plan.asp http://www.moneysense.gov.sg/understanding-financial-products/insurance/types-of-insurance/life-insurance/types-of-life-insurance/participating-policies.aspx
what is linked insurance policy