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Unit Linked Insurance Plans

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Unit Linked Insurance Plans (ULIP) offers a mix of insurance and investment in a single policy.

Hence, by paying a single premium, you will get both insurance cover and also invest in the underlying schemes which help you create wealth.

Unfortunately, this might not be the right tool for everyone.

Studies have shown that when insurance and investments are mixed, the investor will not be that successful with either of the domain.

Either the insurance cover would be low, or returns would be poor or in worse scenarios, both.

Hence, in general, it is better not mix both.

A bit of study will usually allow you to pick a good Term Insurance and a good Mutual Funds scheme at a cost less than that of a ULIP.

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