WHAT IS IT?
Unit-linked insurance plans or Ulips are products sold to you by insurers which area combination of a pure life insurance policy and a marketlinked investment product. “As the name suggests, Ulips are marketlinked. A part of the premium you pay to your insurer, certain portion gets allocated to equity or debt funds," said Dheeraj Sehgal, chief institutional business officer, Bajaj Allianz Life Insurance. The product basically provides you with a mix of insurance and investment in the same product. The product has a five-year lock-in period. “You are allowed to pick from a large-, mid- or small-cap, debt or balanced investment depending on your risk appetite," said Anup Seth, chief retail officer, Edelweiss Tokio Life. You are also allowed to switch between different funds.
