The balance amount is further invested in a preferred financial plan. Investment plans offer advantages such as creation of wealth, financial protection, saving for retirement, tax benefit, etc. The different types of Insurance Investment plans in India are Endowment plan, ULIP, Money Back plan, etc
In case of death of the life assured, the life insurer pays the higher of the fund value or the sum assured to the beneficiary of the policy. Say for instance, you have purchased a ULIP for a sum assured of Rs.30 lakh. But, in a span of 4 years, the amount accumulated is only 8 lakhs. In case you pass away in the fifth policy year, your family will receive a sum assured of Rs. 30 lakhs, since the plan pays out the higher of the fund value.
In case of death of the life assured, the life insurer pays the fund value as well as the sum assured too the beneficiary of the policy. Taking the above example in consideration, your nominee will receive the sum assured of Rs 30 lakh as well as the fund value of Rs. 8 lakh, in case of your demise
We all know that ULIPs offer both death as well as maturity benefits to the policyholder. In case of death of the policyholder within the policy period, the nominee will receive either the sum assured or the higher of the fund value as well as the sum assured or the sum assured as well as the value of the fund. Mentioned below is a step-by-step process to claim the ULIP:
Mentioned below are the benefits of buying investment plans:
The insurance company agrees to make the payment of a certain amount to the nominee in case of death of the life insured. This amount is the sum assured in a ULIP.
ULIPs are considered as Hybrid product since they offer life cover as well as allocate savings in different channels in various market-linked assets to achieve long-term goals. For instance, milestones such as your child’s education, marriage or your retirement can be easily achieved if you opt for ULIPs. ULIPs facilitate saving for such goals as well as financial security.
Mentioned below are the funds that ULIPs provide to invest in:
The Net Asset Value (NAV) of the Unit Linked Insurance Plan is the total amount of its holdings net of admissible costs or expenses. The ULIPs holdings on a particular day are added and the liabilities such as the operating expenses, management fees, marketing expenses, etc. are deducted, to get the NAV amount.
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