Unit Linked Insurance Plan (ULIPs)

A Unit Linked Insurance Plan (ULIP) is a multi-purpose product that gives you both life insurance and market investment through a single plan. Your money is split to provide life cover and buy units in equity or debt funds that track market values daily.

Key Features of ULIPs

• Dual Benefit: Combines life protection with potential market growth.
• Fund Choices: Lets you pick equity, debt, or hybrid funds based on your risk comfort.
• Lock-in Period: Requires a mandatory five-year wait before full withdrawals or surrenders are allowed.
• Fund Switching: Allows you to move your money between different funds as markets change.
• Tax Savings: Offers deductions on investments and tax-free returns under standard income tax laws.

Common ULIP Charges

• Premium Allocation Charge: Deducted upfront from your payment for setup costs.
• Mortality Charge: Cost for the life insurance cover.
• Fund Management Charge: Fee for managing your chosen asset pool.
• Switching Charge: Cost to move money between different fund types (often free for a set number of switches).