CAFS ULIP

Unit Linked Insurance Plan

Insurance with an investment of your choice. Make sure you end your insurance term with assured returns.



    ULIP

    ULIP is more or less an advancement to endowment plans. Under this plan the user pays the premium to the insurer. A part of the premium is allocated for investments where the user can choose the desired investment options.

    Who should buy ULIP

    ULIP is for investors who look for insurance and look for an investment option. ULIP also known as unit linked investment program. ULIP plans is just an add-on towards traditional plan. The add-on is that the policyholder can opt the fund where the money needs to be invested.

    Investors whose goal is to make an investment with good returns as well insure his/her life can opt for ULIP. These investments come with different level of risk. The policyholder has to decide how much risk he wants. In genral high risk is associated with high returns.

    Facts to be considered for choosing Traditional Insurance

    Investment type

    The policyholder has to choose the investment type. These investment types include Equity, debt or mix of both. The policyholder has to analyse the risk he can handle can choose the investment option accordingly. In genral equity is known for high risk, debt is known for low risk and hybrid is a mix of both.

    Investment goals

    Investment goals should be set before signing the policy as traditional policy has different customisation. The policyholder must decide the interval of returns that he is expecting form the policy. This should be decided before it could disturb the investors future financial decisions.

    Life cover

    Life cover has huge impact on the premium paid by the investor every month. The investor has to decide the life cover as he shouldn’t face the situation of defaulting the premium payment. The life cover should also be chosen in a way that it could support the family’s financial needs.