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 premium is invested in markets for long-term wealth creation
- 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 and performance of funds. ULIP returns are dependent on several macro and micro economic factors.
4. What is fund value of a ULIP?
A part of the premium that you pay towards your ULIP plan is deducted to meet different charges. The remaining amount is used to purchase units of funds. The number of units multiplied by the Net Asset Value(NAV) of the unit on that day is the fund value.