ULIP

ALL YOU NEED TO KNOW ABOUT UNIT LINKED INSURANCE PLAN

Published By Livemint | 06 Feb, 2023

ULIP (Unit Linked Insurance Plan) offers the best of insurance and investing

In ULIP, the premium paid by the individual is divided and two portions are assigned

One portion is assigned towards life cover 

Other portion is invested in financial securities or a fund selected by the policyholder

They are regulated by Insurance Regulatory and Development Authority of India (IRDAI) in India

ULIPs have a minimum lock-in period of five years but it is advisable to hold them for long periods

They are a good option for investors who want to invest in securities while saving for retirement simultaneously

Premium paid on ULIP investments is also eligible for tax exemption up to 1.5 lakh