Ulips
SYNOPSIS
“A COMPARATIVE ANALYSIS OF UNIT LINKED INSURANCE SCHEMES OF PUBLIC AND PRIVATE INSURANCE COMPANIES”
INTRODUCTION
The insurance plays a major role in the life of the humanity. Slowly people stared to realize the necessity of the insurance and these needs are unending as long as life exists. In fact insurance is not restricted for any category neither of the society nor in term of cast, ages or life styles. As Indian investors are now more exposed to the capital markets and have started understanding its working, they want to multiply their money rapidly.
This can be done through Unit Linked Insurance Plans (market linked plans ) introduced by the insurance players. ULIPS also known as UNBUNBLED, VARIABLE INSURANCE PLANS has possibly been the single largest innovation in the field of life insurance in the past several decades. It wasn’t too long back, when the good old endowment plan was the preferred way to insure oneself against an eventuality and to set aside some savings to meet one’s financial objectives. Then insurance was thrown open to the private sector. The result was the launch of a wide variety of insurance plans, including the ULIPs.
Two factors were responsible for the advent of ULIPs on the domestic insurance horizon. First was the arrival of private insurance companies on the domestic scene. ULIPs were one of the most significant innovations introduced by private insurers. The other factor that saw investors take to ULIPs was the decline of assured return endowment plans.
These were the two factors most instrumental in marking the arrival of ULIPs, but another factor that has helped their cause is a booming stock market. While this now appears as one of the primary reasons for their popularity, it is believed that ULIPs have some fundamental positives like enhanced flexibility and merging of investment and insurance in a single entity that have really endeared them to individuals. ULIPs came to play in the 1960s and became very
“A COMPARATIVE ANALYSIS OF UNIT LINKED INSURANCE SCHEMES OF PUBLIC AND PRIVATE INSURANCE COMPANIES”
INTRODUCTION
The insurance plays a major role in the life of the humanity. Slowly people stared to realize the necessity of the insurance and these needs are unending as long as life exists. In fact insurance is not restricted for any category neither of the society nor in term of cast, ages or life styles. As Indian investors are now more exposed to the capital markets and have started understanding its working, they want to multiply their money rapidly.
This can be done through Unit Linked Insurance Plans (market linked plans ) introduced by the insurance players. ULIPS also known as UNBUNBLED, VARIABLE INSURANCE PLANS has possibly been the single largest innovation in the field of life insurance in the past several decades. It wasn’t too long back, when the good old endowment plan was the preferred way to insure oneself against an eventuality and to set aside some savings to meet one’s financial objectives. Then insurance was thrown open to the private sector. The result was the launch of a wide variety of insurance plans, including the ULIPs.
Two factors were responsible for the advent of ULIPs on the domestic insurance horizon. First was the arrival of private insurance companies on the domestic scene. ULIPs were one of the most significant innovations introduced by private insurers. The other factor that saw investors take to ULIPs was the decline of assured return endowment plans.
These were the two factors most instrumental in marking the arrival of ULIPs, but another factor that has helped their cause is a booming stock market. While this now appears as one of the primary reasons for their popularity, it is believed that ULIPs have some fundamental positives like enhanced flexibility and merging of investment and insurance in a single entity that have really endeared them to individuals. ULIPs came to play in the 1960s and became very