1. What is a ULIP plan?
A ULIP plan offers twin advantage of life insurance cover and investment returns in a single product. In a ULIP policy, a part of the premium provides life cover while the other is invested to earn returns. A ULIP plan invests in various underlying funds of varying degrees of risk.
2. Why I should invest in ULIPs now?
- ULIP investment offers life insurance and investment in a single product
- ULIP investment offers capital appreciation
- The premium paid is exempt from tax
- ULIP plan also offers flexibility of fund choice- so you can choose a fund basis your risk appetite
3. Are investment returns guaranteed in a ULIP?
No. ULIP returns are not guaranteed. Since, a ULIP policy is a market-linked product, the returns depend on market conditions. ULIP returns are dependent on several macro and micro economic factors.
4. What is fund value of a ULIP?
The value of your invested money in ULIP after deducting all the charges is called fund value. A part of the premium that you pay towards your ULIP plan is deducted to meet fund allocation charges, while some others like fund management charge, mortality charge, and administration charges are deducted by canceling the units at prevailing NAV. The final value of leftover units is the fund value.