ULIPs Bring You Closer To Your Long -Term Goals

ULIPs Bring You Closer To Your Long -Term Goals

- Vishwajeet Parashar

Indian investors have always been spoilt for choices when it comes to investing. From bank fixed deposits, post office savings products to mutual funds and exchange traded funds, there are investments for every need, horizon and risk appetite. One such product is unit linked insurance plan (Ulip), having existed in the market for almost 15 years now. Let’s revisit the product.

Unit-linked insurance plan (Ulip), an insurance product that bundles protection and savings has undergone several structural changes of late. Unlike in the past, where premiums could have been discontinued after a certain period say 3 or 5 years, the current version requires premiums to be paid till maturity, unless you choose limited premium payment period. Hence, saving through Ulips becomes a forced savings and requires payments each year for the policy to continue. Also, unlike in the past, now majority of charges have become standardized and spread over the first five years of the policy.

Putting Ulips to Use