Wide Difference between Insurance (ULIPS) and Mutual funds

blogDid not thought of writing this post but the Diwali LIC incidence force me to share the thoughts where a neighbor uncle forced me to buy a LIC Unit Linked Insurance Policies (ULIPs)

ULIP as an investment avenue are closest to mutual funds in terms of their structure and functioning. As is the cases with mutual funds, investors in ULIPs are allotted units by the insurance company and a net asset value (NAV) is declared for the same on a daily basis.

Similarly ULIP investors have the option of investing across various schemes similar to the ones found in the mutual funds domain, i.e. diversified equity funds, balanced funds and debt funds to name a few. Generally speaking, ULIPs can be termed as mutual fund schemes with an insurance component. Continue reading “Wide Difference between Insurance (ULIPS) and Mutual funds”

Term Insurance

This is the phase of year where people get starting the calls from the insurance agents . The very simple reason we like to sandyyadavprocrastinate and the financial planning turn up saving tax for that particular financial year. Here is a small primer on the Term insurance why you need it :-

There is nothing more affordable than purchasing term policies. The prices offered on this insurance policy are lower as compared to other policies. There may not be much of a difference in whole life policies and term policies. Term policies are affordable Continue reading “Term Insurance”

To buy or not to buy Insurance policy ..Caveat Emptor

I did not intend to write on this  topic but in the last couple of days the cold calls from insurance agents provoked me . Few days back there is a very interesting column done in the mint on the insurance policies which die due to lapsation or the

product cost is too high.  Insurance in India is still a huge commission based business what is interesting the lapsation ration is on the high-rise from the data collected.

In insurance, customers return this product by either letting their policy lapse or by voluntarily surrendering their policy. Continue reading “To buy or not to buy Insurance policy ..Caveat Emptor”