LIC policy : The country’s largest insurance company LIC is preparing to bring new ULIP plans and health policies before bringing its IPO Should you invest in them? Know all the important things related to it
The country’s largest insurance company Life Insurance Corporation of India (LIC-Life Insurance Corporation of India) is giving edge to its business before bringing IPO.
In view of the good performance of the stock market, the company is preparing to increase the business of Unit Linked Plan ie ULIP. LIC currently has only 3 ULIP (Unit Linked Insurance Plans) plans and only 3 health plans. There are 11 endowment and 9 money back plans.
These plans of the company attracted a lot of people but not now… because these plans gave less return of 4 to 6 percent. Awareness has increased among people and they want better returns. In such a situation, LIC is preparing to bring a market linked plan like ULIP.
LIC’s new plan for policyholders – These plans are called non-participating plans in which the investor does not get any bonus or dividend. When a plan like ULIP matures, the investor is likely to get attractive returns.
The funds of these schemes are invested in equities. That is, the return of ULIP depends on the performance of the stock market.
देश की सबसे बड़ी बीमा कंपनी LIC अपना IPO लाने से पहले नए ULIP प्लान और हेल्थ पालिसी लाने की तैयारी कर रही है? क्या आपको इनमें निवेश करना चाहिए जानिए इस वीडियो में @devgzb @anshuman1tiwari#LIC pic.twitter.com/bLl7CYcIsG
— Money9 (@Money9Live) January 5, 2022
LIC is also preparing to bring new health plans… because after Kovid, people are buying health insurance a lot. Health plans of life insurance company are of long term. These schemes have a long lock-in.
Experts are of the opinion that if you want good returns from investment, then it is better to invest in mutual funds instead of plans like ULIP. They get the flexibility to withdraw money. At the same time, the health cover with long lock-in from the life insurance company does not get the facility like porting and increasing the sum assured.
Know about ULIPs on the go
ULIP is an insurance product. The insurance agent gets a hefty commission on selling these policies. That is why agents often offered plans to investors here. But now the rules have changed.
You pay a premium for your insurance cover. The insurance company invests the rest of the money after deducting life cover and other expenses from it. Pure term plans offer only insurance cover and do not have any element of savings or investments.
In this way you are able to buy a huge life insurance cover with very low premium. If the policyholder dies during the term of the policy, the nominee gets the Sum Assured.
If someone survives beyond the policy term, he/she gets nothing. Not getting anything and missing out on the premium paid is what most people like this policy less.
This is the reason why insurance companies started promoting products with savings or investments with insurance. Indians happily adopted endowment plans and expensive products like ULIPs.
