Term plan and a ULIP (Unit Linked Insurance Plan) are two different types of life insurance policies that offer different features and benefits.
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Term plan |
ULIP (Unit Linked Insurance Plan) |
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A type of life insurance policy that provides coverage for a specific term |
A type of life insurance policy that combines life insurance coverage with an investment component |
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Designed purely for life insurance coverage |
ULIP combines life insurance coverage with an investment component |
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Provides coverage for a specific term in the event of the policyholder's death |
ULIP provides life insurance coverage and investment gains |
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Premiums are lesser than ULIP |
Premiums for a ULIP may be higher due to the investment component |
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Death benefit for a term plan is typically a fixed amount |
Death benefit for a ULIP is equal to the sum of the policyholder's premium payments plus any investment gains |
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Involve a process of filing a claim to receive the death benefit |
Involve a process of filing a claim to receive the death benefit |