Unit linked Insurance Plan, better known as ULIP is a type of life insurance plan that proÂvides benefits of protection against risks and flexibility to manage the investments of preÂmiums. Part of the premium paid by the customer goes towards providing the insurance ki cover and the balance is invested in venues of investment desired by the policy holder.
These plans are most suitable for getting insurance and also growing your money.
ULIPs work best when invested for a longer period of time with multiple investment options. The funds can be chosen by the customers depending on their risk appetite. The right balance of investment in equity and debt funds over a longer period of time can protect the customer from the ups and downs of the market.
ULIPs are veryflexible. The policy holder has the option to partially withdraw money from his fund after compleÂtion of 5 years. The policy holder also gets the option to contribute extra money over and above his premiums to his investment corpus by way of Top-Ups.