What is ULIP? Full form, ULIP Meaning, Features & Benefits
Ishu last edited by
ULIP stands for Unit-Linked Insurance Plan.
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.
Teji last edited by
@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.