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Comparison between
ULIPS and Traditional plans
ULIPS
Traditional Plans
Traditional plan is
insurance cum
investment plan that
promises both risk cover
and returns to the
investor
Traditional Plan is
insurance oriented
Investm
ent
Flexibili
ty
ULIPS
Traditional Plans
Risk Factor
Transparen
cy
Payback
Potential
Being a no risk
investment, no
substantial returns can be
expected from Traditional
Plans
Liquidity
Conclusion
After understanding ULIPs and traditional plans it is
important to understand the criteria for choosing
between a traditional insurance plan and a ULIP.
The choice requires considerable analysis, and largely
depends on the profile and goal of the investor.
The investors risk taking ability, which includes her
age, income or return expectation is a crucial factor in
determining the right choice for him.
For instance, a young investor may be more
aggressive and opt for ULIPs, whereas an older person
within the same income bracket may choose an
endowment policy for stability.