What is NAV? I see some NAV based life insurance plans? Do they involve stock markets?

General
1

I was not knowing that life insurance plans also work like stock market prices

Example this plan, http://www.licindiaguru.com/samridhi.php

In moneycontrol this is the chart.

http://www.moneycontrol.com/insurance/ulip/life-insurance-corporation-of-india-LI/lic-samridhi-plus-fund-ILI129.html​

Do they invest the premiums in stock market to get such rising curves?

What are NAV? How it works?

2

Nav = NET ASSET VALUE

ULIPS or similarly structured plans can have nav , it can have an equity component

generally 3 plans are there EQ Debt and balanced plan .

3

NAV is Net Asset Value of a UNIT, which is akin to share price of a company. ULIP’s are Unit Linked Life Insurance Plans, here money is collected from the people and invested in stock market by the particular Insurance Company. Some eg. of ULIP plans are MOney Plus, Market Plus of LIC.

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