Comparison of Ulips with Mutual Fund

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The insurance plays a major role in the life of the humanity. Slowly people stared to realize the necessity of the insurance and these needs are unending as long as life exists. In fact insurance is not restricted for any category neither of the society nor in term of cast, ages or life styles. Also many people have a notion that Insurance is very good form of an investment, which is not right. Insurance is just creating a protection for you and your family. As Indian investors are now more exposed to the capital markets and have started understanding its working, they want to multiply their money rapidly..This can be done through Unit Linked Insurance Plans (market linked plans ) introduced by the Insurance players.

Therefore the only reasons for selecting this topic are
* To get more knowledge about insurance sector in India
* To undergo a comprehensive study of ULIPs.
* To get experienced of corporate scenario.


Today, only one business, which affects all walks of life, is insurance business. That’s why insurance industry occupies a very important place among financial services operative in the world. Owing to growing complexity of life, trade and commerce, individuals as well as business firms are turning to insurance to manage various risks. Therefore a proper knowledge of what insurance is and what purpose does it serve to individual or an organization is therefore necessary.

The future is never certain

Insurance, essentially, is an arrangement where the losses experienced by a few are extended over several who are exposed to similar risks. Insurance is a protection against financial losses arising on the happening of an unexpected event. Insurance companies collect premium to provide security for the purpose. In simple words it is spreading of risks amongst many people.

It is a fundamental part of a sound financial plan which helps to insure your loved ones and Life insurance – the only instrument that takes care of these 3 probabilities Marriage
Wealth creation
Living death

* Benefits:

For unforeseen circumstances.

For child’s education and for higher studies.

Facilitates adequate savings for worry free retired life.

* Insurance ------------a Flash back:

The earliest transaction of insurance as practiced today can be traced back to the 14th century AD. The business of insurance started with marine business by Traders who used to gather in the Lloyd’s coffee house in London, wherein they had agreed to insure their ships in transit.

The 1st Life Insurance Policy was issued on 18th June, 1583, on the life of William Gibbons for a period of 12 months. Life Insurance in its current form came in India from the UK, with the establishment of British firm, Oriental Life insurance Company, in 1818

The 1st Indian insurance company was the Bombay Mutual Assurance Society Ltd, formed in 1870. By the year 1956, when the life insurance business was nationalized and the Life Insurance Corporation Of India ltd (LIC) was formed on 1st September, 1956 and there were 245 companies existing at that time in India.

By 31.3.2002, eleven new insurers had been registered and had begun to transact Life insurance business in India.

1. Life
2. Term
3. Endowment
4. Unit-linked
5. Money-back

To make comparison of ULIP plan of ing vysya life with mutual fund and to create awareness about ulip benefits.the overall goal of the project is to create awareness about investments above problem arises because many life insurance companies has many plans having many positive and negative aspects. Life insurance is booming sector in today’s economy. So the responsibilities of the insurance companies have been increased compared...
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