DIFFERENCE BETWEEN THE ULIPS AND TRADITIONAL PLANS

PLANS ULIPS
· The premium on the excess risk coverage is reversed as desired by the policyholder.
· The return on investment can vary depending on market movement and the risk investment is borne entirely by the policy-holder.
· Withdrawals are allowed. the loss, NAV for loans are not permitted.
· There are no bonuses, except loyalty bonus in some cases.
· Amount of premium Th used for insurance coverage, other expenses and the purchase of   the units are unbundled and transparent.
· Benefits are variable.
· Loss is likely.
· Earnings likely depending on market movements.
traditional Plans
· All prizes will be pooled and invested in the insurer's discretion.
· There are two categories of benefits: secured and unsecured. for guaranteed. benefits, the insurer assumes the investment risk. But no - guaranteed benefit, such as bonds,depend on the evolution of the insurer.
· It pays, but is allowed at a loss. loans can be provided.
· To participate policies, premiums are paid.
· The amount of the premium used for insurance coverage, other charges and investment are bundled.up and is not known.
Advantages · The pre-determined.
Loss of the UN is likely.
· Get ​​more probable is expected through bonds.

FEATURE OF TRADITIONAL PLANS

A traditional plan will guarantee the following function. When you change the characteristics or comb addition and some of them, any number of plans can be developed.
· Who can be insured? The various possibilities are
1) * individual adults
2) * Children
3) * Two or more people together under one policy.
* What contingency SA paid? It could be about death or survival.
· * What can be a SA? Some plans stipulate minimum SA. There can be also maximumfor SA, as well as some benefit, as a subsidy by accident.
· * When the corporation will pay? It could be in a lump sum or in installments
· * Reduced SA? This can happen because of the involvement of surplus and addingbonus or guaranteed due to the increase in SA.
·
· * Are there additional benefits? These, also called fringe benefits and can be providedby brokers, in addition to the basics covers
· * Increases the SA? This can happen because if participation in surplus and in addition to bonds or guaranteed due to the increase in SA.
* Piece of mutual funds are in debt instruments.
* Constant returns and almost certain in the long term.

TRADITIONAL PLANS

All traditional plans of life insurance are the combination of these two basic plans. Aterm assurance plan with an unspecified period is called "Whole Life POLI CY 'in whichthe sum assured (SA) is paid with death, whenever that may occur. A term assurance-plan, along with a pure endowment plan, when offered as a single product called an endowment assurance Plan, in which the SA is paid in the period indicated abovesurvival or death. A term assurance plan with a pure endowment plan twice the value ofplan is called a double-manning requirements under which the amount payable on survival is twice the amount payable on death. What is called a return of money "or the policy of allocation provided, under which say that 20% of SA is payable on survival in five years and 40% in survival for 20 years and complete SA in death at any time in 20 years is actually a combination of a guarantee scheme within 20 years if it is for the fullSA and four different plans for the provision of 20% of the SA 5yeras. 20% of SA for 10years, 20% SA for 15 years and 40% SA for 20 years).