Overview

While ULIPs offer the opportunity to invest up to 100% in equity, you have the flexibility to shift to up to 100% debt.

ULIPs are available in 3 broad variants listed below:

• Aggressive ULIPs - Invest up to 100% of their corpus in equities.
• Balanced ULIPs - Invest up to 60% of their corpus in equities and balance in debt market.
• Conservative ULIPs - Invest up to 100% of their corpus in debt instruments and the money market instruments.

Individuals are free to decide where they want to invest their money. For example, individuals with an appetite for risk can invest their entire money in equities while conservative individuals have the option to park their money in balanced or conservative ULIPs.

ULIP Premium: Basics

ULIPs combine benefits of insurance and mutual funds, investing a portion of the insurance premium in debt funds or bonds or listed equities and gives a return on investment.

Unit-linked Insurance Plans (ULIPs) combine the benefits of life insurance policies with mutual funds. A certain part of the premium is invested in listed equities/debt funds/bonds, and the balance is used to provide for life insurance and fund management expenses. Yields earned on investments i.e. the value of the investment or the sum assured, whichever is higher, is paid to the insured or nominee. This varies from company to company i.e. some insurance companies pay the value of the investment in addition to the sum assured.