Unit Linked Plan

A unit linked insurance plan (ULIP) is a multi-faceted product that offers both insurance coverage and investment exposure in equities or bonds. This product requires policyholders to make regular premium payments. Part of the premiums goes toward insurance coverage, while the remaining portion is pooled with assets from other policyholders and invested in either equities, bonds, or a combination of both. A unit linked insurance plan can be used for various purposes, including providing life insurance, building wealth, generating retirement income, and paying for the educations of children and grandchildren. In many cases, an investor opens a ULIP to provide benefits to their descendants. With a life insurance ULIP, the beneficiaries would receive payments following the owner’s death.