These are two types of insurance plan that will provide several benefits to cover your risk, safety for your money, income returns which are fixed as well as the other tax benefits. Traditional insurance plans count in very previous and oldest plan for insurance policy. These traditional plans adapt a quality to provide a very limited exposure that will be in high risk equity. Even its downside probability is too low. Basically the purpose of this plan is compatible for the purpose, if anybody is interested to do tax planning.
ULIPs are like one is not allowed do premature withdrawal which is possible in traditional plan. Yes, one can do the premature withdrawal without having any loss to the deposited amount. ULIPs stand for Unit Linked Insurance Plans. Insurance facilities are divided into two kind of policy. One can choose either traditional insurance policies or ULIP plans policies.
Insurance is totally centered or developed for the benefits of its customer. It has launched many products after being thrown on the private sectors in the year of 2000. Numerous and several plans are there that secure you from the other unwanted tragedies. It is also increasing day by day competition with many private companies running in same sector.
ULIPs contain facility for customers who include protection as well as savings which get combined with the market investors. Such products are genuinely linked with market and has capability to serve their customer high returns. It has flexibility to switch their funds within the service. The entire invested amount as well as funds which has withdrawal provides find as well as the partial withdrawal is also can occur systematically. These plans provide convenience to user and people will use it more because it has flexibility as well as partial withdrawal policy. Even it has some risk but it is more suitable for many users.
Traditional insurance plans include the whole life policy, endowment plans as well as term policy. It offers many policy plans which include the safety criteria, risk cover as well as return without having any loss. It provides policies which include fixed return even in case of a person’s death as well as if it completes its maturity. There are guidelines available which provide investment guidelines so that you can evaluate your investment amount’s cost.
These plans of traditional insurance policies include traditional life plans product which has became more popular in India and running since many decades. People are still not completely aware about their terms and conditions as well as it provides the other customer’s surplus share as policy holder approximately 90 percentage of share where it only includes 10 percentage of a person’s share. Many people are not aware from such stuffs and get confuse about how they can able to enhance their money.
ULIP is better or traditional is good depends on the requirement of the customer. So both plans have their own values. Traditional plans are good for long term investment whereas ULIP plans are good if you are planning to break your invested amount before getting its maturity. Before deciding which are good you need to decide what you are planning to invest your amount for what purpose, then you can easily get your answer.