Unit-linked insurance plans (ULIPs) are designed to enable policyholders to get market returns along with insurance cover. Generally ULIP policies are available with income fund, where money is invested in debt instruments bearing moderate risk; balanced fund, where money is invested in both debt and equity to keep the risk in moderate to high level; large cap fund, where the market risk is high despite investing in large and established companies and growth funds where money is invested in very high-risk small and mid cap funds. As this type of plans offer protection along with market returns, the nominee will get the sum assured if the policyholder dies prematurely.
