A Unit Linked Insurance Plan is basically a combination of insurance and investments offered by insurance companies to suit the wealth enhancement needs of their customers. The premium, a policyholder of Unit Linked Insurance Plan pays is divided into two parts, one of which is used to provide an insurance cover to the policy holder while the other is used to invest in various equity and debt schemes. The policy holder has the option of choosing a suitable equity or debt scheme for himself keeping in mind his needs and his appetite for risk.
A Unit Linked Insurance Plan has the following advantages over other investment schemes:
1. The policy holder is given insurance as well as investment, both tied up in one instrument. This gives him an option to keep a close eye over his investments and switch between the most profitable funds as per his risk appetite.
2. The returns awarded to the policy holder are not only based on his choice of fund allocation but also linked to the market. Which means there is a possibility of much higher returns upon the funds bifurcated from his premium which is invested into the equity or debt schemes?
3. Unit Linked Insurance Plan also caters to policy holders with a varying risk profile. As mentioned before, the holders have an option of selecting the schemes their funds are invested in, in accordance with their risk appetite and market outlook.
4. Another major advantage of such plans is that they help inculcate habits like saving and safe investing of your wealth, which in the long run would help you build wealth for your family.
At Edelweiss Tokio, they strive to protect your dreams and aspirations by helping you choose the most favorable investment option for your needs and hence, protecting your future and that of your loved ones.