Licentiate Examination - IC 14 - Regulation of Insurance Business Exam - Important Points
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ULIPs are different from other insurance products because of the manner in which the premium money is invested. The premiums of other insurance products are invested primarily in debt securities. The policyholder has no say in choosing the type of securities in which their funds are invested. However, in the case of ULIPs the policyholder can choose the fund in which their premium will be invested. Hence, ULIPs allow the policyholder to choose the fund (asset type) in which their premiums will be invested.
Investment fund options offered by ULIPs - Equity Fund, Debt Fund, Balanced Fund, Money Market Fund
Aggressive / Equity fund invests major portion of the money in equity and equity related instruments. High Risk Category
Conservative / Debt fund invests major portion of the money in Government Bonds, Corporate Bonds, Fixed Deposits etc.
Balanced fund invests in a mix of equity and debt instruments.
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