Unit linked insurance plans or ULIPS are wherein a portion of your investment goes towards buying you a protection solution and the other part is invested in the financial markets based on the financial goal and your risk return profile. The investible portion is thus invested into stocks / bonds and other related instruments in the same proportion that you decide at the beginning or insurance companies also offer you the flexibility to choose the bond or stock where you would want to invest your money. Since the fund that you invest in would be investing into debt / bonds or equity / stocks the performance of the ULIP schemes would depend on the performance of the asset class that you invested in.
At the time of maturity of the plan your are entitled to receive the fund value of your investments and in case of any eventuality to the life assured a sum equal to the sum assured and the fund value of the investments is paid to the beneficiary. ULIPs in India are available for Retirement planning, Child Education planning, and for long term wealth creation. Some companies also provide you health solutions through ULIPs.
Before buying a ULIP it is important that you meet a financial planning expert and understand your risk return plan then take an investment decision. If you wish to be contacted for knowing more about Unit Linked Insurance Plans, submit your query.
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