what is better between traditional plan and ulip plan inlife insurance looking to the investment made over a p?



eriod of 10 years and life risk is covered for 30 years at present my age is 35.

3 Replies to “what is better between traditional plan and ulip plan inlife insurance looking to the investment made over a p?”

  1. traditional plan like term insurance is not meant for investment. It covers only risk. Ulip you can take it for investment but note that the returns are subjectto market risk.


  2. INSURANCE IS NOT INVESTMENT. No Insurance policy will make you rich. The returns from insurance is very low. Go for PURE TERM COVER. They are the cheapest. Go to http://www.aegonreligare.com Their premium rates are the lowest. For INVESTMENT – go for a combination of PPF , SIP in MUTUAL FUNDS & DIRECT EQUITY. Any other insurance plan only benefits the agent and the company.


  3. I presume by “traditional” you mean endowment or “with profit” policies. These policies share in the profit of the insurace company and give returns of around 6% p.a. These are good products to safeguard your life as well as to protect future expenses like children education, marriage etc.

    ULIP are investment oriented insurance products which give returns based on investments in share market. The insurance component here is low as compared to traditional product.

    Term insurance is purest form of insurance. At a low premium life is insured for high amount. There is no maturity amount payable here.

    My suggestion is to go for combination of term plus endowment wherein you get adequate cover and also get premium back.





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