Unit Linked Insurance Plan (ULIP)

A Unit Linked Insurance Plan (ULIP) is a financial product that combines both insurance and investment. The premium you pay is split into two parts: one portion covers the insurance cost, while the remaining amount is invested in various funds (like equity, debt, or balanced funds) according to your preference. The returns on these investments can vary based on market performance. It offers a degree of flexibility. Policyholders can switch between different funds based on their risk appetite and market conditions. They may also have the option to increase or decrease the premium or even make partial withdrawals after a specified lock-in period.