What are ULIP !

ULIP stands for Unit linked insurance products.

They are the most happening products in the Indian insurance industry,

So what are ULIPS? And why they are so popular?

In simple words ULIPS are nothing but a mutual fund with insurance cover attached to it.

Because of the exposure to equity it beats all the traditional insurance plan in terms of returns. But in the same time unlike traditional insurance products they do not provide guaranteed return.

Entry Load of ULIPS is quite higher then Mutual Funds, and it is normally in range of 5% to 20% of investment.

Apart from Entry load,there are many others charges need to pay each year and because of these charge ULIPS are very costly for short term

ULIPS are better place to invest money if you have longer horizon of 10 years or more.

For every 100 Rs invested part of your money goes toward various charges which include insurance cover and rest is invested.

Investor (or say Policy Holder!) can choose fund depending on his risk taking capability.

The fund type would be Growth(With high risk, high return), Balanced(moderate risk, moderate return).

secured(Low risk, Low return), There might be more variety available depending upon insurers and type of ULIPS.

One can also switch between different funds and upto certain number of times in a year it is free.

Like MF, on investing money Investor will get Units based on current NAV.