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. In simple words ULIP is a combination of insurance and investment. Here policyholder can pay a premium monthly or annually. A small amount of the premium goes to secure life insurance and rest of the money is invested just like a mutual fund does.
The premium amount is divided into two parts. Part of the premium is kept exclusively for buying the life insurance cover while the remaining part is used for investment.
Anybody who meets the criteria for minimum and maximum age as per the rules of the policy. Anybody who can make the premium payments on time as per the rules and regulations.
Being an investment-cum-insurance policy, ULIP is among the most productive option to choose for investment. In this plan, the sum of your money is invested across stuck markets. Which generates considerable returns and provides you with the coverage for any risk as long as the policy remains in force?
A ULIP provides investors with a number of advantages.