What is ULIP? Full form, ULIP Meaning, Features & Benefits



  • ULIP stands for Unit-Linked Insurance Plan.

    ULIP Meaning:
    In simple words, ULIP is a combination of insurance and investment. The insurer puts your money partly towards life insurance and partly invests it in a fund that can be debt or equity or both. There are fund managers to manage your investments.
    ULIP or Unit-Linked Insurance Plan is primarily a long term investment tool for meeting your long term financial goals. You can switch and adjust your portfolio between debt and equity as per your risk horizon.
    ULIP or Unit-Linked Insurance Plan Features & Benefits:

    • You get a life insurance cover that acts as a security for your family.
    • Premium paid for ULIP qualifies for tax deduction under Section 80C.
    • The amount received on maturity is also exempt Under Section 10(10D).
    • You can switch from equity to debt as per your risk appetite.
    • ULIPs have a lock-in period of 5 years and generally suits long term investors.
      Hence, ULIP is another addition to the list of retirement planning and wealth creation options in India.


  • @ishu Is it worth investing in ULIP plans? I mean there are mutual fund and direct stock investing options as well. So, why one should prefer investing in ULIPs? Any feedback on it.



  • Insurance and investments are 2 boats, better not to try to sail in them together.



  • @prateek Rightly said! But, to some extent. Insurance should never be mixed with investment. However, one must not ignore the importance of health and term insurance as well. Both, insurance & investment have their own special place in our financial life and none can be ignored.

    The motive to have insurance should be to safeguard you and your family by taking an adequate risk cover. Whereas your investment strategies must be focused on generating good returns & growing your money in the long run. What do you think? Did I point out correctly? Any add-ons you wish to make to it.



  • @prateek Well said bro 🙂 Insurance & investment are 2 boats. But, why not sail together, I mean both things are important. Clarify a bit on it.



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