ULIPs 2024: Guide to Benefits, Features, and How They Work

Unit-linked insurance Plans (ULIPs) have emerged as a popular investment option, offering a unique blend of insurance coverage and market-linked returns.

As we navigate the financial landscape of 2024, understanding ULIPs is crucial for anyone looking to optimize their investment portfolio. This guide will explore:

• The benefits and features of ULIPs
• How ULIPs work in today’s market
• Why ULIPs remain relevant in 2024

Since their introduction, ULIPs have evolved significantly, adapting to changing market conditions and investor needs. With their dual advantages of life insurance and investment, ULIPs offer a versatile solution for those seeking long-term wealth creation while ensuring financial protection for their loved ones.

Whether you’re a seasoned investor or just starting your financial journey, this comprehensive guide will help you make informed decisions about incorporating ULIPs into your financial strategy.

What are ULIPs?

ULIPs, or Unit Linked Insurance Plans, are financial products that combine insurance and investment. They offer life coverage while allowing you to invest in market-linked funds. ULIPs work by allocating a part of your premium towards life insurance and the rest into investment funds of your choice.

The history of ULIPs in India dates back to the early 2000s. Initially, they faced criticism due to high charges and lack of transparency. However, over time, regulations have improved, making ULIPs more customer-friendly.

Key Aspects Of ULIPs Include

• Premium flexibility
• Fund switching options
• Tax benefits under Section 80C

ULIPs allow you to choose from various fund options based on your risk appetite. These might include equity funds with high growth potential, debt funds with stability, or balanced funds with a mix of both.

One unique feature of ULIPs is the ability to switch between funds. This lets you adjust your investment strategy as market conditions change or as you near your financial goals.

The insurance component of ULIPs provides a safety net for your family. In case of the policyholder’s death, beneficiaries receive either the sum assured or the fund value, whichever is higher.

Understanding ULIPs is crucial for anyone who balances their insurance needs with investment goals. As we delve deeper into how ULIPs work, you’ll learn whether this tool aligns with your long-term financial objectives.

How ULIPs Work

ULIPs operate on a simple principle: your premium is split between insurance coverage and investment. Here’s a breakdown of the process:

1. Premium Allocation: • A portion goes towards life insurance • The rest is invested in chosen funds
2. Fund Options: • Equity funds for high growth potential • Debt funds for stability • Balanced funds for moderate risk

When you pay your ULIP premium, the insurer deducts charges like premium allocation and policy administration fees. The remaining amount buys units in your chosen funds at the current Net Asset Value (NAV).

The NAV changes daily based on market performance. It’s calculated by dividing the fund’s total value by the number of units. This determines the value of your investment.

ULIPs offer flexibility in premium payment. You can choose to pay monthly, quarterly, or annually. Some ULIPs also allow top-ups, letting you invest extra when you have surplus funds.

The insurance coverage in ULIPs is typically a multiple of your annual premium. This ensures your family’s financial security in case of unforeseen events.

Fund switching is a crucial feature of ULIPs. It allows you to move your investment between different fund options, helping you adapt to market changes or align with your changing risk appetite.

Understanding how ULIPs work is crucial for maximizing their benefits. By grasping these mechanics, you can make informed decisions about premium allocation, fund selection, and switching strategies to meet your long-term financial goals.

Key Features Of ULIPs

ULIPs offer a range of features that make them attractive to investors. Let’s explore these key aspects:

1. Flexibility In Premium Payment

 • Choose from annual, semi-annual, or monthly options 

• Some ULIPs allow premium holidays during financial crunches

2. Top-Up Facility:

• Invest extra money when you have surplus funds 

• Boost your investment without starting a new policy

3. Fund Switching Options

• Move between equity, debt, and balanced funds

 • Adapt to market conditions or changing financial goals

4. Partial Withdrawal Provisions

 • Access a portion of your fund value after the lock-in period

 • Useful for meeting unexpected expenses

5. Rider Options: 

• Add extra coverage like critical illness or accidental death benefit

 • Customize your policy to suit your needs

ULIPs also offer a unique feature called “switching.” This allows you to move your investments between different fund options without incurring extra charges. It’s a valuable tool for managing your portfolio as market conditions change.

Most ULIPs have a five-year lock-in period during which you can’t withdraw funds. This encourages long-term investing and helps your money grow.

Another key feature is the transparency in charges. ULIP providers must clearly state all fees, helping you understand the cost structure.

Lastly, many ULIPs offer loyalty additions or bonuses for long-term investors. These can significantly boost your returns over time.

Understanding these features helps you make the most of your ULIP investment. It allows you to tailor the policy to your financial needs and goals.

Benefits Of ULIPs

ULIPs offer several advantages that make them attractive to investors. Let’s explore these benefits:

1. Dual Advantage

 Insurance + Investment

 • Life coverage protects your family

 • Market-linked returns grow your wealth

2. Tax Benefits

• Premiums are tax-deductible under Section 80C

 • Maturity proceeds are tax-free under Section 10(10D)

3. Long-term Wealth Creation 

• Potential for high returns through equity investment 

• Compound growth over time

4. Market-linked Returns

 • Opportunity to beat inflation

 • Direct participation in stock market growth

5. Transparency

 • Clear disclosure of charges

 • Regular updates on fund performance

ULIPs allow you to start investing with relatively small amounts, making them accessible to young investors or those just starting their financial journey.

The flexibility to switch between funds is a significant plus. You can move from high-risk to low-risk options as you near your financial goals, helping to protect your gains.

Many ULIPs now offer online management. You can track performance, switch funds, and make top-ups through user-friendly portals.

The long-term nature of ULIPs encourages disciplined investing. Regular premium payments help build a substantial corpus over time.

Lastly, ULIPs offer a sense of financial security. Knowing that your investment is coupled with life coverage provides peace of mind for you and your family.

Understanding these benefits can help you decide if ULIPs fit your financial strategy. They offer a unique combination of protection and growth potential that many find valuable.

Type Of ULIPs

ULIPs come in various forms to suit different investor needs. Let’s explore the main types:

1. Single Premium vs. Regular Premium ULIPs

 • Single Premium: One-time significant investment

 • Regular Premium: Periodic payments (monthly, quarterly, yearly)

2. Type 1 vs. Type 2 ULIPs

• Type 1: Higher of sum assured or fund value paid on death

 • Type 2: Sum assured plus fund value paid on death

3. Child ULIPs

 • Designed for the child’s future expenses like education

 • Often include waiver of premium benefit

4. Pension ULIPs:

 • Focus on building a retirement corpus

 • Option to receive regular income after retirement

Single Premium ULIPs suit those with a lump sum to invest. They often have lower charges but less flexibility. Regular Premium ULIPs, on the other hand, allow systematic investing and are more common.

Type 1 ULIP are popular because they offer higher insurance coverage. Type 2 ULIP’s offer larger payouts but usually have higher premiums.

Child ULIPs typically have a lock-in until the child reaches 18. They may offer milestone-based partial withdrawals for education expenses.

Pension ULIPs help with retirement planning. They usually convert to an annuity plan at maturity, providing regular income.

Some insurers offer specialized ULIPs for women or seniors. These may have tailored benefits, such as critical illness coverage for women-specific ailments.

Whole Life ULIPs cover the entire lifetime, combining investment with lifelong protection.

Understanding these types helps you choose a ULIP that aligns with your financial goals and life stage.

Charges Associated With ULIPs

Investors should know that unit-linked insurance plans (ULIPs) incur several charges. These fees can significantly impact the overall returns and value of the policy.

Premium Allocation Charge

A premium allocation charge is deducted from the premium before it’s invested. This charge covers the insurer’s expenses, such as commissions and administrative costs. The charge is usually higher in the initial years and decreases over time.

Mortality charge

Mortality charge covers the cost of providing life insurance coverage. It’s based on factors like the policyholder’s age, health, and sum assured. This charge is deducted by canceling units from the fund value.

Fund Management Charge

A fund management charge is levied to manage the investment portion of the ULIP. It’s a percentage of the fund value and is deducted before calculating the Net Asset Value (NAV). This ongoing charge affects the policy’s long-term returns.

 Policy Administration Charge

The policy administration charge covers the administrative expenses of maintaining the policy. It’s usually a fixed amount deducted monthly by canceling units from the fund value.

Surrender Charge

A surrender charge applies if the policyholder wishes to exit the policy before the lock-in period (typically 5 years). It’s a percentage of the fund value and decreases over time. After the lock-in period, most ULIPs don’t have surrender charges.

Understanding these charges is crucial for investors to evaluate the actual cost of a ULIP and compare it with other investment options. While ULIP offers the dual benefit of insurance and investment, the various charges can reduce returns if not carefully considered.

ULIP vs. Other Investment Options 

ULIPs (Unit Linked Insurance Plans) offer insurance and investment, but it is essential to compare them with other options to make informed decisions.

Ulips vs Mutual Funds

Compared to mutual funds, ULIP has higher initial costs due to premium allocation and mortality charges. Mutual funds typically have lower expense ratios and offer more flexibility in switching between funds. However, ULIP provides tax benefits under Section 80C and tax-free returns under Section 10(10D), which mutual funds don’t offer. Unlike mutual funds, ULIP also includes life coverage.

Comparison With Traditional Life Insurance Policies

Traditional life insurance policies like endowment plans offer guaranteed returns and higher insurance coverage. They’re less risky but generally provide lower returns compared to ULIPs. ULIPs offer more transparency and the potential for higher returns through market-linked investments but with higher risk.

 Comparison With Term Insurance + Separate Investments

Combining term insurance with separate investments (like mutual funds or stocks) is often more cost-effective than ULIPs. Term insurance provides higher coverage at lower premiums, leaving more money for investments. This approach offers greater flexibility and potentially higher returns, as investors can choose from a broader range of investment options. However, it requires more active management and doesn’t provide the integrated tax benefits of ULIPs.

ULIPs have improved in recent years with reduced charges and increased transparency. They can suit those seeking a single product for insurance and investment, especially if they value the tax benefits. However, financially savvy individuals might prefer the flexibility and potentially higher returns of separate term insurance and investments.

The choice depends on individual financial goals, risk appetite, and the need for insurance coverage. It’s advisable to carefully compare options and consider consulting a financial advisor before deciding.

Risks And Considerations

ULIPs, while offering potential benefits, come with several risks and considerations that investors should carefully evaluate.

Market Risks

Market risks are inherent in ULIPs, which invest in equity and debt markets. The value of units can fluctuate based on market performance, potentially leading to lower returns or even losses. This risk is particularly significant for equity-oriented funds, which offer higher growth potential but with greater volatility.

Lock-In Period

The lock-in period, typically five years, is a crucial factor. During this time, policyholders cannot withdraw funds without incurring substantial penalties. This lack of liquidity can be problematic if urgent financial needs arise.

Impact Of Charges On Returns

The impact of charges on returns is significant, especially in the early years. Premium allocation charges, mortality charges, and fund management fees can substantially reduce the invested amount and overall returns. While these charges have decreased in recent years, they still affect the policy’s performance, particularly if surrendered early.

Importance Of Long-Term Commitment

Long-term commitment is vital for ULIPs to be effective. The power of compounding and the reduction in the relative impact of initial charges make ULIPs more beneficial over longer periods. However, short-term investors may find the returns underwhelming due to the charges being front-loaded.

Investors should also consider their risk appetite and financial goals. ULIPs require active management regarding fund selection and switching to optimize returns. The insurance coverage may be insufficient compared to pure-term insurance policies, necessitating additional coverage.

Transparency in ULIPs has improved, but many investors still struggle to understand the complex structure of charges and returns. Therefore, it’s crucial to thoroughly review the policy document and seek professional advice if needed.

In conclusion, while ULIPs offer a unique combination of insurance and investment, they require careful consideration of market risks, liquidity constraints, charge structures, and long-term commitment to be genuinely beneficial.

How To Choose The Best ULIPs

Choosing the right ULIP requires careful consideration of personal financial goals, risk tolerance, and thorough product comparison.

Assessing Personal Financial Goals

Start by assessing your financial goals. Determine whether you want wealth creation, retirement planning, or specific objectives like funding children’s education. This will guide your fund options within the ULIP.

Evaluating Risk Appetite

Evaluate your risk appetite honestly. ULIPs offer various fund options ranging from high-risk equity funds to low-risk debt funds. Your risk tolerance should align with your investment choices. Younger investors might opt for higher equity exposure, while those nearing retirement might prefer more conservative options.

Comparing Different ULIP Products

Compare different ULIP products meticulously. Look at factors such as:

• Charge structure (premium allocation, mortality, fund management charges)
• Fund performance history (though past performance doesn’t guarantee future returns)
• Flexibility in switching between funds
• Top-up options
• Rider benefits
• Claim settlement ratio of the insurer

Importance Of Reading The Fine Print

The importance of reading the fine print cannot be overstated. Pay close attention to:

• Lock-in period details
• Surrender charges
• Conditions for partial withdrawals
• Terms of fund switching
• Details of death benefit calculation

Consider the insurer’s reputation and financial stability. Also, consider its track record in managing funds and customer service quality.

Assess the ULIP’s alignment with your investment horizon. Long-term goals typically benefit more from ULIPs due to the power of compounding and reduction in the impact of initial charges over time.

Don’t hesitate to seek professional financial advice. An expert can help you navigate the complexities of ULIPs and ensure your choice aligns with your overall financial plan.

The right ULIP should balance your need for life coverage with your investment objectives, offering a product that you’re comfortable holding for the long term.

ULIP Performance Evaluation 

Understanding ULIP performance and tracking your investments is crucial for maximizing returns and achieving your financial goals. Here’s an overview of ULIP performance evaluation:

Understanding Fund Performance Metrics

1. Net Asset Value (NAV): This is the fund’s per-unit market value. It’s calculated daily and reflects the fund’s performance.
2. Returns are typically expressed as Compound Annual Growth Rate (CAGR) for different time periods (1-year, 3-year, 5-year, etc.).
3. Alpha: Measures the fund’s performance against its benchmark index. A positive alpha indicates outperformance.
4. Beta: Indicates the fund’s volatility compared to the market. A beta greater than 1 suggests higher volatility.
5. Sharpe Ratio: Evaluates risk-adjusted returns. A higher ratio indicates better performance for the risk taken.
6. Expense Ratio: The percentage of assets used for administrative and operating expenses. Lower is generally better.

How To Track Your ULIP Investments

1. Regular statement review: Insurers provide periodic statements. Review these to understand your fund value, units allocated, and charges deducted.
2. Online portals: Most insurers offer online platforms where you can track your ULIP’s performance in real time.
3. Fund switching analysis: Monitor the performance of different funds offered within your ULIP to make informed switching decisions.
4. Benchmark comparison: Compare your fund’s performance against relevant market indices and peer funds.
5. Charge impact assessment: Regularly evaluate how charges are affecting your returns.
6. Rebalancing: Review and adjust your fund allocation periodically based on your changing risk appetite and market conditions.
7. Professional advice: Consult a financial advisor for expert insights on your ULIP’s performance.

ULIPs are long-term investments. While regular monitoring is important, avoid making decisions based on short-term market fluctuations. Focus on your overall financial goals and the ULIP’s alignment with these objectives.

ULIPs In The Digital Age 

ULIPs have evolved significantly in the digital age, embracing technology to enhance user experience and investment management.

Online ULIP Platforms

Online ULIP platforms have revolutionized how investors interact with their policies. These platforms offer:

1. Easy policy purchase and management
2. Real-time fund value tracking
3. Seamless fund-switching capabilities
4. Digital premium payment options
5. Quick access to policy documents
6. Online claim filing and tracking

These digital interfaces provide greater transparency and control, allowing policyholders to make informed decisions quickly.

Robo-Advisory Services For ULIP Investments

Robo-advisory services for ULIP investments are gaining traction. These AI-driven platforms offer:

1. Automated fund selection based on risk profile and goals
2. Regular portfolio rebalancing
3. Data-driven investment insights
4. Lower costs compared to human advisors
5. 24/7 access to investment advice

Robo-advisors use algorithms to analyze market trends and individual investor profiles, providing personalized investment strategies. They’re particularly appealing to tech-savvy investors who prefer a hands-off approach.

However, the digital transformation of ULIPs also presents challenges. Cybersecurity concerns and the need for digital literacy among older investors are key issues. Additionally, the lack of human touch in robo-advisory services may not suit all investors, especially those who value personalized guidance.

As ULIPs continue to evolve digitally, they’re becoming more accessible and user-friendly, potentially attracting a younger demographic of investors.

Common Misconceptions About ULIPs

Common misconceptions about ULIPs often lead to misunderstandings about their benefits and risks. Here’s a brief overview addressing some myths and clarifying facts:

Addressing myths and clarifying facts

• Myth: ULIPs are only investment products.

 Fact: ULIPs offer both insurance coverage and investment opportunities.

• Myth: ULIPs always underperform mutual funds. 

Fact: Performance varies; some ULIPs can outperform mutual funds, especially considering tax benefits.

• Myth: ULIPs have very high charges. 

Fact: While charges exist, recent regulations have capped and reduced many ULIP fees.

• Myth: Surrendering a ULIP early is a good way to exit a poor investment.

 Fact: Early surrender often results in significant losses due to surrender charges and forfeited benefits.

• Myth: ULIPs provide inadequate insurance coverage.

 Fact: Coverage varies by policy; many ULIPs offer substantial life insurance protection.

• Myth: ULIPs are only for risk-averse investors. 

Fact: ULIPs offer various fund options suitable for different risk appetites.

• Myth: All ULIP returns are tax-free. 

Fact: Tax benefits depend on premium amounts and holding periods; not all returns are always tax-free.

• Myth: ULIPs require no monitoring once purchased.

 Fact: Regular monitoring and occasional rebalancing can optimize ULIP performance.

Understanding these facts helps make informed decisions about whether ULIPs fit into one’s financial planning strategy.

Real-Life Examples Of ULIP Performance

Real-life ULIP case studies offer valuable insights into both the potential benefits and pitfalls of these investment products:

Success Story

 Rahul, 30, invested in a ULIP with a 20-year term, paying ₹1 lakh annual premium. He chose a balanced fund option. By age 50, his fund value had grown to ₹75 lakhs, significantly outperforming inflation. The policy also provided life coverage of ₹1 crore. Rahul benefited from tax deductions on premiums and tax-free returns, enhancing his overall financial position.

Cautionary Tale

Priya, 40, bought a ULIP with a 10-year term, investing ₹50,000 annually. She opted for an aggressive equity fund but panicked during a market downturn and switched to a debt fund. This ill-timed decision and high initial charges resulted in subpar returns. After 10 years, her fund value was only ₹5.5 lakhs, barely exceeding her total premium paid.

Mixed Outcome

 Amit started a ULIP at 25, paying ₹25,000 yearly. He initially struggled with premiums but maintained the policy. By actively managing fund switches based on market conditions, he achieved decent returns. However, the insurance coverage proved inadequate when he needed to increase it later in life.

These cases highlight the importance of:

1. Long-term commitment
2. Understanding and managing risk
3. Regular monitoring and informed decision-making
4. Balancing investment goals with adequate insurance coverage

They underscore that while ULIPs can be powerful financial tools, their success largely depends on individual circumstances and management.

Expert Opinions: Insights From Financial Advisors And Industry Experts

Financial advisors and industry experts offer varied perspectives on ULIPs, providing valuable insights for potential investors:

Many experts emphasize the importance of viewing ULIPs as long-term investments. Dhirendra Kumar, CEO of Value Research, notes, “ULIPs can be effective if held for 15-20 years, allowing the power of compounding to overcome initial charges.”

Deepak Shenoy, founder of Capitalmind, observes on charges, “Recent regulatory changes have made ULIPs more competitive, but investors should still carefully compare costs with other investment options.”

Regarding investment strategy, Lakshmi Iyer, CIO-Debt at Kotak Mahindra Asset Management, advises, “ULIPs offer flexibility in asset allocation. Investors should actively manage their fund choices based on market conditions and personal risk appetite.”

Some experts caution against over-reliance on ULIPs. Harsh Roongta, a SEBI-registered investment advisor, states, “While ULIPs offer convenience, separating insurance and investments often leads to better coverage and potentially higher returns.”

Regarding insurance, Kapil Mehta, co-founder of SecureNow Insurance Broker, notes, “ULIPs typically provide lower insurance coverage than term plans. Investors should ensure adequate life cover through additional policies if needed.”

Overall, experts agree that ULIPs can be suitable for some investors but stress the importance of thorough research, understanding personal financial goals, and considering ULIPs as part of a broader financial plan.

The Future Of Unit Linked Insurance Plans (ULIPs)

The future of Unit-Linked Insurance Plans (ULIPs) is set to evolve with changing market dynamics and consumer preferences. To remain competitive, ULIPs are adapting to new technologies and investment strategies. Regulatory bodies will likely implement changes to enhance transparency and protect policyholders’ interests.

Emerging Trends In ULIPs

• Digital-first approach and online sales
• AI-driven portfolio management
• Customizable investment options
• Focus on sustainable and ESG investments
• Lower costs and improved transparency
• Integration with other financial products

Potential Regulatory Changes

• Stricter disclosure requirements
• Caps on charges and commissions
• Standardization of policy terms
• Enhanced policyholder protection measures
• Relaxation of investment norms
• Increased focus on risk management

These developments aim to make ULIPs more attractive to investors while ensuring better oversight and consumer protection. As the industry adapts to these changes, ULIPs are expected to play a significant role in India’s insurance and investment landscape.

Steps To Invest In A ULIP

Investing in a Unit Linked Insurance Plan (ULIP) involves several key steps. First, you need to research and compare different ULIP options. Then, you go through the application process. Last, you gather and submit the required documents.

Here’s a breakdown of the steps:

Research and comparison:

• Look at different insurance companies
• Compare ULIP features and benefits
• Check fund performance history
• Review charges and fees
• Read customer reviews
• Consult a financial advisor if needed

Application Process

• Choose your preferred ULIP
• Fill out the application form
• Select the sum assured and premium amount
• Pick your investment funds
• Decide on rider options, if any
• Complete the proposal form

Documentation Required

• Proof of identity (PAN card, Aadhaar card)
• Proof of address (utility bill, passport)
• Age proof (birth certificate, passport)
• Income proof (salary slip, tax returns)
• Recent passport-size photographs
• Medical reports, if required

By following these steps, you can make an informed decision and smoothly invest in a ULIP that fits your needs.

Managing Your ULIP Investment

Managing your ULIP investment is key to getting good returns. You need to review your ULIP regularly and make changes when needed. It’s important to know when and how to adjust your investment.

Regular Review And Rebalancing

• Check your ULIP performance every 3-6 months
• Compare your fund’s growth with market trends
• Look at how different funds in your ULIP are doing
• See if your investment matches your goals
• Think about changing funds if they’re not doing well
• Keep your investment mix in line with your risk level

When And How To Make Changes To Your ULIP:

• Change funds if they don’t meet your needs
• Switch to safer options as you get closer to your goal
• Increase your investment if your income goes up
• Use the top-up option to invest extra money
• Change your premium payment term if needed
• Add or remove riders based on your life changes

You can usually make some changes to your ULIP for free each year. But read your policy details carefully. Some changes might have fees. Always think about your long-term goals when making changes to your ULIP.

Conclusion

ULIPs are a unique mix of insurance and investment. They offer protection and a chance to grow your money. Understanding ULIPs can help you decide if they fit your financial plan.

Recap of key points:

• ULIPs combine life insurance with investment
• They offer different fund options to choose from
• You can change your investment mix over time
• ULIPs have charges, but they’ve become more affordable
• Regular review and rebalancing is important
• You need to research well before buying a ULIP

Final thoughts on the role of ULIPs in a diversified portfolio:

• ULIPs can be a good way to invest in long-term goals
• They help you stay disciplined in your savings
• The insurance cover adds a safety net for your family
• ULIPs can be part of your tax-saving strategy
• They allow you to adjust your investment as your needs change
• However, ULIPs shouldn’t be your only investment

ULIPs work best when held for a long time. They can be a useful part of your financial plan but not the whole plan. When considering ULIPs, always consider your goals, risk tolerance, and other investments.

Frequently Asked Questions

Who bears the investment risk in the case of ULIPs?
The policyholder bears the investment risk in ULIPs.

Why are ULIPs better than mutual funds?
ULIPs offer both investment and insurance benefits, making them more versatile than mutual funds.

What are ULIPs?
ULIPs (Unit Linked Insurance Plans) are financial products that combine investment and insurance.

How to switch funds in ULIPs?
You can switch funds in ULIPs by submitting a switch request to the insurer, usually via their online portal or by contacting their customer service.

How are ULIPs taxed?
ULIPs are tax-exempt under Section 80C for premiums paid and Section 10(10D) for maturity benefits if conditions are met.

Why are ULIPs bad?
ULIPs are considered less favorable due to high fees, complexity, and potential for lower returns than other investment options.

Who can create ULIPs?
Only registered insurance companies can create ULIPs.

How do ULIPs work?
ULIPs allocate a portion of your premium to insurance coverage and invest the rest in market-linked funds.

Which is the best investment option in India?
The best investment option in India varies based on individual goals, risk appetite, and investment horizon.

What benefits of ULIPs over mutual funds?
ULIPs provide dual benefits, such as life insurance and market-linked returns with tax advantages.