Whether you are a young professional, just married, a young parent or planning for retirement, your family’s security and happiness would always be on top of your priority list. Life Insurance can help you to secure your family’s financial future, even in your absence. We at abode wealth, work to make life insurance simpler through our custom-tailored insurance plans suiting all your changing needs. Explore our plans and choose a plan that is most suitable to your life stage!
Term insurance is a type of life insurance policy that provides coverage for a certain period of time, or a specified “term” of years. If the insured dies during the time period specified in the policy and the policy is active – or in force – then a death benefit will be paid or You can choose Whole Life Policy, Wherein the policyholder pays regular premiums until his death, upon which the corpus is paid out to the family.
Endowment plans differ from term plans in one critical aspect i.e. maturity benefit. Unlike term plans which pay out the sum assured, along with profits, only in case of an eventuality over the policy term, endowment planspay out the sum assured under both scenarios – death and survival. However, endowment plans charge higher fees / expenses – reflected in premiums – for paying out sum assured, along with profits, in either scenario – death or maturity. The profits are an outcome of premiums being invested in asset markets – equities and debt.
Unit linked insurance plans (ULIP)
ULIPs are a variant of the traditional endowment plan.They pay out the sum assured (or the investment portfolio if its higher) on death/maturity.
ULIPs differ from traditional endowment plans in certain areas. As the name suggests, performance of ULIP is linked to markets. Individuals can choose the allocation for investments in stock/debt markets. The value of the investment portfolio is captured by the NAV (net asset value). To that end, there are many similarities between ULIPs and mutual funds. ULIPs differ in one area, they are a combination of investment and insurance, while mutual funds are a pure investment avenue.