Unit Linked Insurance Plan


Insurance link units are self-protection and investment products in one package turn out to be a good acclaim from society. This type of insurance is believed to be the more interesting community because of the two benefits that can be taken at once.

Insurance link units give priority on the protection or the protection of the inhabitants. While on the other hand also gives tantalizing enough investment benefits for long-term financial planning.

Unit Linked Insurance Plan
Unit Linked Insurance Plan


Although it is a combination of life insurance and investment products, insurance benefits within the unit links remain highlighted. There is a clause of the contract mentioned in the life insurance policy to be met first and then discuss the allocation of funds for investment.

Insurance benefits are offered cooperatively with Conventional Insurance

As other conventional insurance, unit link also has the principle to provide protection of financial losses. Unit link insurance offers a range of basic benefits as other life insurance coverage, i.e, the risk of death, serious illness, hospitalization, and others.

Link units also allow the existence of the rider or the required additional protection benefits policyholders.

Why is investment-based insurance?
It may be very important to know why insurance is said to be based on investment. This insurance is said to be based on investment because of all the costs, both the administrative costs, insurance costs, and so on are converted into the form of units and premium payment are entered into the accounts.

The share of investment in the unit’s link is actually and has prices that vary every day. More important than that, the ownership of the investment in the unit links marked with the units of the unit.

Link units are suitable for long term investment
With the investment opportunity given the insurance unit of the link, the investment is not actually intended for short-term investments due to the allocation of the funds deposited through the fact that the premium is focused on life insurance. Then the rest of the premium payment is allocated for investment.

The condition that is causing the investment-based insurance is not suitable if it is used as an investment vehicle with expect short term gains. Because link units instead of pure investment. Apart from that, basically, the investments in the Fund management unit links are like mutual funds. Therefore, this investment result determined the economic market conditions.

Investment allocation can adjust the risk profile
Buy investment-based insurance policies are also closely related to how big the risk is accepted. Therefore, it is important to know the risk profile. Knowing the risk profile is very important for you to be determined what the most appropriate investment for you. In principle the same actually, the higher the risk, the greater the benefits.

Once you understand your own risk profile, next is determine the desired investment. Whether stocks, bonds? Every investment has its advantages and disadvantages.

How can I see the value of the investment?
You can monitor how the value of investments owned via transaction reports issued the insurance every month. In the report, you can view the balance in the account policy unit, who then can convert back into dollars.

Other Considerations before buying Investment-based Insurance Policies

If you have a strong  desire to buy a policy, then there are other things to consider
First, know the cost of buying and selling. Remember, any payment of premium or other transactions means you have bought investment. Investment not only deals with the activities of buy and sell, but considers also that overall it costs. Usually, the cost of the sale between 3-5% of the transaction value.

The second, related to the cost of a premium when compared with the benefits of sum assured. Look for companies that offer the greatest value for coverage and costs are as small as possible. Frequent-often looking for information related to this.

The third, which is also very important, is to recognize the reputation of the company which issued the insurance policy. What is their reputation? Whether the company along with its products already has a license? Does the company have a lot of clients? How the processes and procedures of their claim? How is the company's track record for this?

Remember, insurance-based investments are aimed at long-term, choose a company that is really good from all sides.

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