Unit Linked Insurance Plan, or ULIP, is composite life insurance and an investment plan. ULIP provides you with an insurance cover while contributing a part of your premiums into investment avenues such as equities, bonds or both.

Tips for buying ULIPs

Buy ULIP online:
Buying ULIPs online gives you the advantage of comparing different ULIP plans as well as save on additional charges attached with buying ULIPs offline.

Use the switching option:
Use the market situation to your advantage by switching your money between equity and debt during market fluctuations.

Invest and forget:
Unless a situation of financial emergency rises, leave your investment for at least 10 years to benefit from the potentials of compounding.

ULIPs aim to provide life cover with wealth creation and are a great way to diversify your investment portfolio. The premiums also enjoy tax deductions under Section 80C. By all means, it’s a must-have.