Return on Mutual fund under Unit linked Insurance Plan

Abstract

Thailand is entering a completely aging society in the near future. The social order has shifted. Financial planning is essential for persons of working age nowadays. This research therefore studies an alternative to financial planning- unit-linked insurance plan (ULIP) and create long-term health insurance welfare with supplementary health contracts by studying the working principles of unit-linked insurance including the profitability of the funds invested by life insurance companies. and returns received by the insured when investing every month for a period of 10 years.

The study found that the return of mutual funds under the investment-linked life insurance is between 3.05% and 6.74%. In addition, when considering the operation of the unit-linked life insurance, it is found that the premium payment remains constant throughout the contract. However, the cost of insurance increases with age.  The principle of investing money is to bring insurance premiums to pay for insurance costs first. And invest the remaining money in mutual funds of the insured's choice from the calculations, it is found that from the selected funds can provide the highest return on investment at 16.26 percent, however, there are other funds that have negative returns as well. Therefore, the insured should understand mutual funds and financial management principles of life insurance before deciding to choose a fund. in order to get the desired return.