%20combines%20investment%20andinsurance,%20just%20like%20a%20unit-linked%20insurance%20plan%20(ULIP).%20Variable%20life%20insurance%20schemes%20offer%20flexibility%20in%20the%20ratio%20of%20mortality%20and%20savings%20components.These%20plans%20also%20offer%20more%20clearness,%20simplicity,%20quick%20liquidity,%20guaranteed%20minimum...){kind=link}
Take benefit of investment avenues with variable life insurance plan
Take benefit of investment avenues with variable life insurance plan
A variable life insurance plan (VLIP) combines investment andinsurance, just like a unit-linked insurance plan (ULIP). Variable life insurance schemes offer flexibility in the ratio of mortality and savings components.
These plans also offer more clearness, simplicity, quick liquidity, guaranteed minimum returns, transparent charges and ample risk cover. This type of life insurance allows you to contribute in several investment options simultaneously targeting your premiums to separate accounts.
Generally, the optional investment funds include stocks, bonds, money market funds, equity funds, or a mixture of them all. Variable Life Insurance allows you to switch from one sub-account to another.
You can also apply the interest earned on these investments toward the premium, reducing the amount you pay. In a going away from theULIPs, the returns are declared by insurance companies annually and are not linked to the stock market.
One part of the premium is allocated to buylife insurance. The balance is invested in bonds or equities. The premium amount cannot be changed in the course of the policy, but the death benefit and savings element can be reviewed and altered as the policyholder's circumstances change.
You can increase your insurance protection and decrease the investment component, or vice versa. Another feature of this plan is that it does not get automatically cancelled if the policyholder fails to pay the premiums as long as the premiums paid till date meet policy requirements. Under the plans, the premiums paid by the holder, after deduction of charges, will be credited to the account maintained separately for each policyholder.
If all due premiums are paid, the amount held in the policyholder's account will earn an annual interest which will be guaranteed for the entire policy term. In addition to this guaranteed return, if all due premiums are paid; the individual policyholder's account may earn an additional return depending upon the experience under the plan.
There is an option to pay additional (top-up) premiums without any increase in risk cover to the extent of total basic premiums paid under the policy. The premiums can be paid regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the term of the policy. The sum assured ranges from 10 to 30 times the annualized premium, depending on age of entry.
There are two types of variable life insurance plans - participating and non-participating. Participating plans offer a guaranteed return, while nonparticipating plans offer an annual bonus at the end of each financial year in addition to guaranteed returns.
The minimum sum assured is Rs 50,000 or 10 times the annualized premium, whichever is higher for entry at the age below 45 years. After that age, the maximum is Rs 50,000 or 7 times the annualized premium.
Top-up premium is allowed throughout the term. In case the insured decides to increase his contribution through a onetime top-up, a maximum of up to 3 percent charges may be deducted from the top-up. The product also provides for loans up to 60(%) percent of the balance at a specific rate of interest. How Soon Does Life Insurance Get Paid Out? Minneapolis Bank Foreclosures: Affordable Life In A Global City Weight reduction Ideas -- Little Way of life Changes Will help you Lose weight Quicker Uk Life Insurance Renders Help For People You Love An Instant Term Life Insurance Is Like A Necessity For Everyone Mesothelioma Treatments To Sooth Your Precious Life Fitness Yoga For A Better Life Life Goes On for Breast Cancer Survivors Cosmetic Dentist San Antonio TX - An Invisalign Cosmetic Dentist Gives Advice To Prolong Your Child's Life Bad Credit Loans No Broker Pay Off All Their Credits And Lead A Healthy Life. Secure your life with An Instant Term Life Insurance Effective Methods To A diet In Daily Life Cheap Car Insurance For A Cheerful And Content Life!