Unit linked Insurance Plans

Unit linked Insurance Plans(ULIP):

ULIP is a life insurance product, which provides risk cover for the policy holder along with investment options to invest in any number of qualified investments such as stocks, bonds or mutual funds. As a single integrated plan, the investment part and the protection part can be managed according to specific needs and choices.

Advantages Of A Unit Linked Insurance Plans?

Market linked returns

Unit linked plans give you an opportunity to earn market-linked returns as part of the premiums are invested in market linked funds which invest in different market instruments including debt instruments and equity in varying proportions.

Life protection, Investment and Savings

Unit linked insurance plans offer the twin benefits of life insurance and savings at market-linked returns. Thus, you have the opportunity to invest your money to earn higher returns, while taking care of your protection needs. Investing in unit linked plans helps to inculcate a regular habit of saving and investing, which is important for building wealth over the long term.

Investments in ULIP (Unit linked Insurance Plans) :

In a Unit Linked Plan (ULIP), the premiums you pay are put resources into the assets picked by you subsequent to deducting designation charges and charges including those for overseeing stores, approach organization and for giving protection cover are deducted from the assets by scratching off specific units.

The estimation of every unit of a reserve is controlled by separating the aggregate estimation of the store’s speculations by the aggregate number of units.
ULIPs are a blend of protection and prediction. A piece of the put sum in ULIPs is utilized to give protection and whatever is left of the sum is put resources into the securities exchanges. Ventures of up to Rs 1.5 lakh in ULIPs are qualified for tax cuts under Section 80C

Qualification :

A speculator can purchase ULIP for self or life partner or tyke


Interest rate differs as it is showcase connected

Rate of Interest:

Interest rate on the NPS differs between 12% – 14%

Venture Limit:

No farthest point on top level augmentation

Assessment Treatment:

Investment and withdrawals and development sum are tax-exempt.