Reply To: ULIPs
Vanshika Gupta
Unit linked Insurance Policies or ULIPs are insurance policies which offer you potential of wealth creation while providing the security of a Life Cover. In ULIPs, a part of your premium is dedicated towards your Life Cover and the rest is assigned to a common pool of money, called fund, which invests in equity, debt or a combined of both. The return on your investments depend upon the performance of the fund opted by you.
It gives you freedom to choose your life cover and freedom to choose your investment type.
The premium can be paid monthly or annually as a lump sum. ULIPs have the potential to garner better returns than any other insurance product because of its equity advantage.