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.

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