Traditional Life Insurance or Investment Linked plans: Which is the right plan for you?
An investment-linked plan (ILP) is a life insurance policy that provides life insurance coverage and investment components. The premiums paid by the policyholder under this plan are used to pay for units in funds of the policyholder’s choice. Some of the units purchased are then sold to pay for life insurance coverage and other charges, while the rest remained invested in the investment funds. This is why ILPs have become popular and are a centrepiece in the product portfolio of various insurers. A traditional life insurance plan offers coverage to the policyholder at a premium which remains the same for the entirety of the... READ MORE : Traditional Life Insurance or Investment Linked plans: Which is the right plan for you?