What is an Unit Linked Insurance Plan & how it works?
A Unit Linked Insurance Plan, or ULIP for short, is a financial instrument which performs the dual functions of insurance and investment within the same plan. A small portion of the premium goes towards the life insurance element, and the rest is systematically invested. This investment is offered by the insurer in a variety of qualified investments in varying proportions of debt and equity stocks, similar to the investment vehicle of mutual funds.