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Unit-linked life insurance is actually in insurance product where the benefits are expressed in terms of number of units and unit price. They can be viewed as a combination of insurance and mutual funds. The idea here is that you put in your money and it grows with time. So you also have life cover and therefore money grows at the same time. You get in units like mutual funds, and the value of these units grows because the company invests it for you. ULIP provides you the option of choosing the investment option as per your risk coverage. These are provided by the insurance companies or even banks. Unit link insurance plan or ULIP is the advance type of insurance plan. When you pay a premium, you are given a cover insurance and part of premium is invested in the fund of your choice. In the initial years, a major part of the premium goes towards buying insurance to cover and remaining portion is invested. You can also switch between funds if the market condition or your personal circumstances changes.

The advantage of unit-linked plans is that they are simple, clear and easy to understand. The transparency of the policyholder gets the entire upside on the performance of its funds. Besides all the advantages they offer the customers, unit-linked plans also lead to an efficient use of capital. Unit link insurance is better if you want to enjoy the flexibility of investing in different asset classes or if you want a higher return. Flexibility in choosing your own protection (the insured) & option to choose from a variety of mutual funds to invest, depending on your risk profile. The investment is part of the insurance by insurers because ULIPs offer investors the opportunity to create a product that, with its risk profile.

A normal person will be confused if you right or plan that is best for his needs? Consultants use these buyer ignorance and promote policies that bring the highest returns. So, whenever you want for the purchase of new or investments in any kind of insurance plan, it is better to deal with financial advisers. ULIP also the same function of providing insurance against death and the provision of long-term savings, but they are structured differently.

A unit-linked investment cum plant, with its limited time premium payment facility of 5 years, premium payment flexibility, higher premium for your investment, one-off special supplements and life insurance benefit, not just your money grow, but also your investment, the special treatment, it deserves. In the market there are many insurance companies offering unit link insurance, but buyer has to decide which unit link insurance is better if you want to enjoy the flexibility of investing in different asset classes or if you want a higher return.

For more details visit: Unit Link Insurance Plan