life insurance policies - ULIP vs Traditional Plans
When it comes to investing in India, one of the most popular options is life insurance policies. Life insurance policies offer financial protection to your loved ones in case of your unfortunate demise. In India, there are two primary types of life insurance policies - Unit Linked Insurance Plans (ULIPs) and Traditional Plans. Both types of plans come with their unique features, benefits, and drawbacks. In this article, we will discuss the difference between ULIPs and Traditional Plans in India to help you make an informed decision. Unit Linked Insurance Plans (ULIPs) ULIPs are life insurance policies that provide both life insurance coverage and investment opportunities. In a ULIP, a part of the premium paid is allocated towards the life cover, and the remaining amount is invested in various market-linked funds, such as equity, debt, or balanced funds, based on the policyholder's risk appetite. The returns in ULIPs depend on the performance of the underlying funds. Advantages of U