ULIP
A plan that bundles life insurance with market-linked investment in one product.
A ULIP, or unit-linked insurance plan, mixes life cover with investment in market-linked funds inside a single policy. Part of your premium buys cover, the rest is invested after several charges. Because it tries to do two jobs at once, the cover is often small and the returns are dragged down by fees, which is why many prefer keeping insurance and investing separate.
Questions people ask
What is the full form of ULIP?
ULIP stands for unit-linked insurance plan. Part of your premium buys life cover and the rest is invested in market-linked funds, inside a single policy, after charges.
Is a ULIP a good way to invest?
Because it does two jobs at once, the cover is often small and returns are dragged down by fees. Many people prefer term insurance for protection and a separate low-cost fund for investing.
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