Unit Linked Insurance Plan (ULIP)

Unit Linked Insurance Plan is commonly known as ULIP. It is a type of insurance plan which offers the dual benefit of life insurance and investment through a single instrument. 

If individuals are keen to invest in market-linked instruments they can choose ULIP plans and get financial protection for the family.

The premium an individual pays towards a ULIP plan is divided into 2 key parts after deduction of all applicable charges and fees:

- One part is directed towards paying for life cover

- The remainder is invested in the fund of his / her choice.

Individuals can choose the approach they would like to invest in market, i.e. via an aggressive investment approach, a moderate one or a conservative one. 

The life cover is fixed right from the time policy is purchased, the returns are based on the market. Customer can expect significant returns if investments are for a longer period, preferably at least 10 years to see the better appreciation. In addition, individuals have flexibility of switching between fund options as the market shifts based on professional advice or their wish.

It should be noted that the risks in the investment portfolio of a ULIP are borne by the policyholder.

In other words, investing in one of the best ULIPs provides a flexible approach to investment planning. ULIPs helps you safely balance your fund with equity and debt components, with options to switch as the market changes.