Is ULIP a good plan?

ULIPs are best suited for individuals with a long term financial plan of wealth creation and insurance. Whether it is for retirement, children’s education or for other financial goals, a ULIP continued till maturity works as an advantage. It gives you the dual benefit of savings and protection, all in a single plan.

What is ULIP plan?

Unit Linked Insurance Plan
ULIP full form is Unit Linked Insurance Plan, which is a multi-faceted life insurance product. A ULIP plan is a combination of life insurance and investment. ULIPs requires you (as a policyholder) to make regular premium payments, part of which is utilised to provide life insurance coverage.

What does Unit Linked Insurance Plan ( ULIP ) mean?

Unit Linked Insurance Plan (ULIP) is a mix of insurance along with investment. From a ULIP, the goal is to provide wealth creation along with life cover where the insurance company puts a portion of your investment towards life insurance and rest into a fund that is based on equity or debt or both and matches with your long-term goals.

Which is the best benefit of an ULIP plan?

One of the major of investing in ULIP is that the insured gets the double benefit of life protection along with the benefit of investment returns. Apart from this, as one of the best investment option, ULIP plans offer the opportunity to create wealth in a long-term and achieve the financial objectives of life.

What’s the difference between mutual fund and ULIP?

A ULIP is insurance cum investment plan in which risk cover is promised, but return solely depends on the market performance. Traditional plan is insurance cum investment plan that promises both risk cover and returns to the investor. A mutual fund is a pure investment product that gives market linked returns.

What’s the lock in period for an ULIP plan?

ULIP plans generally come with a lock-in period of 5 years, post that the policyholder can make partial withdrawals to fulfill the short-term financial objectives of life. This helps the insured to take care of the immediate expenses such as a child’s education, buying home, etc.