Many of us are investors and we are investing for different reasons such as retirement, emergency funds, child education, and so on. Having goals is not incorrect. In fact you should have goals and work towards them. Getting Insurance is also recommended. A Term Life Insurance, Health Insurance, Travel Insurance, etc. are all very imperative.
However, many people are confused between a traditional insurance plan and a non-traditional plan (ULIP). This could be due to various reasons such as ignorance, fear and so on. In order to reduce this confusion, Moneymindz thought of listing down the differences between the two and explaining them. India Best Free online ULIP(Unit Linked Insurance Plans) Insurance Financial Advisory Portal
Before investing in an insurance plan, it’s important to know which one suit you better, which one offers your expected returns and so forth. Never follow the herd in financial matters. Always use your rational judgment before deciding on any financial matter.
1. A Traditional Plan gives no information about which funds it has invested in. A Non-traditional Plan (ULIP) provides investment options according to your risk profile.
2. You can’t track your portfolio in a Traditional Plan but ULIPs allow you to track your portfolio.
3. There is a three year lock-in period with surrender charges in case of Traditional Plans. However, Non Traditional Insurance Plans (ULIPs) have a 5 year period with no surrender charges.
4. In Traditional Plans, an investor has no information about funds hence cannot switch funds. But an investor has the flexibility to switch between funds in a non-traditional Plan (ULIPs). India Best Free on-call/online ULIP Insurance Financial Advisory Portal
5. Traditional Plans have fixed maturity proceeds while Non-Traditional Plans ensure higher returns on maturity as per prevailing unit prices.
6. The return from a traditional insurance product ranges between 3-5% while the returns from UIPs have been 12-15%% over the last 5 years. Free online Health Insurance Financial Advisory
7. Traditional insurance doesn’t offer much liquidity so you can invest if you have surplus money to invest, Non-Traditional Plans offer safer bets.
You can find more information at www.moneynmindz.com or by give a missed call to 022-62116588