5. In case of ULIP, after the first three years of premium payment, one can take a premium holiday and the life insurance cover still continues.
6. Using the switching option given in the ULIP, one can actually ensure that the investment portion of the premium is in the best managed fund. The NAV and the fund performance of the ULIP plan is available on the website of the insurer & also gets published in newspapers.
7. In ULIPs, as the fund value grows, the insurance payout actuall decreases unlike in term plan where it remains constant thruout the life of the plan.
This, then is the real story of term plan. If one is looking for a higher cover, the cost in term plan is quite prohibitive!!!
