ULIP Plans - Unit Linked Insurance Plans in India

ULI is a plan that includes dual investment and life insurance benefits. ULIP full form is Unit Linked Insurance Plan.

Investing in the best ULIP can help you achieve long-term wealth creation and life coverage. It is the best investment option to meet your financial goals. Buy ULIP from Canara HSBC Life Insurance to get life cover, multiple portfolio management options, flexible premium paying options, tax benefits, and a wide array of other benefits.

With a ULIP, you have the flexibility to select your fund as per your risk appetite. ULIPs come with a variety of funds to choose from. Investors with a low risk appetite can invest in debt funds, while those with a high risk appetite can invest in equity funds.

• Lock-in Period: ULIPs come with a lock-in period of 5 years and may offer the potential for wealth creation when invested over a long period of time. Therefore, it can be said that the longer you stay invested in a ULIP, the more it may support your long-term investment goals.
• Premium Payment Options: You can choose a single premium (one-time lump-sum payment at policy inception), a limited premium option (payments for a fixed period with continued coverage), or a regular premium (payments made throughout the policy term).
• Liquidity: ULIPs also allow you to partially withdraw a sum when you need it after the completion of the lock-in period. Simply put, ULIP provide liquidity only after the lock-in period is over.

Canara HSBC Life Insurance offers a range of ULIP plans designed to meet different investment objectives, risk appetites, and protection needs. These plans combine market-linked investment opportunities with life insurance protection while offering flexible fund options, growth enhancers, and value-added features to support long-term financial planning.

These ULIP plans are structured to cater to different financial priorities:

• Promise4Growth Plus: Designed for investors looking to balance wealth creation with life protection, while also benefiting from flexible premium payment options and multiple fund choices.

• SecureInvest: Suitable for individuals focused on long-term wealth accumulation with high life cover, supported by loyalty additions and disciplined investment structures.

• Wealth Edge: Best suited for investors seeking aggressive wealth creation and flexible fund allocation, including equity-oriented strategies with long-term growth potential.

Together, these plans provide diverse fund choices, life cover options, premium flexibility, and long-term investment opportunities, helping investors align their insurance and investment needs with evolving financial goals.

A ULIP plan offers several features that support long-term financial planning and flexibility. Some of the key benefits of a ULIP plan are explained below.

• Flexibility: ULIP plans allow you to switch to a different investment option. This can be useful if you do not have fixed financial goals or wish to rebalance your investments by shifting between funds. It provides you with greater flexibility by allowing you to control where and in what proportion your money is invested. The following features provided by ULIPs enable this flexibility:
  
  
  1. Fund Switching Option: Through the use of this feature, you can move your money between funds based on your investment preferences. For example, you may have invested a significant portion of your money in equity funds and now wish to transfer some of it to safer debt funds. The fund switching option allows you to do this.
  2. Redirection of Premium: ULIPs provide multiple fund options for investment. If you have invested in one fund earlier and no longer find it suitable, you can choose another fund, and the future premiums will be redirected to that fund.
  3. Partial Withdrawal Facility: This option allows you to withdraw a portion of your funds if required, subject to policy terms and the completion of the lock-in period.
  4. Top-up Facility: Through this feature, you can add additional funds to your existing ULIP investment without changing the policy.
• Transparency: ULIPs offer a high level of transparency. With ULIPs, you are informed about the charges associated with the policy. All charges, such as fund management charges, policy administration charges, and other applicable fees, are disclosed upfront before you buy the product.
• Tax Benefits: ULIP are efficient tax-saving instruments. The premium you pay for the policy may qualify for a tax deduction under Section 80C of the Income Tax Act, subject to applicable conditions.
• Ideal for Long-term investment goals: It is perfect for long-term investment objectives. Before investing in a ULIP plan, it is advisable to make a list of your long-term financial goals to fulfil through investing, such as funding higher education, purchasing a house, or planning major life events.
• Market-Linked Returns: The returns earned through a ULIP policy are market-linked and depend on the performance of the chosen investment funds. The premium paid is invested in different funds, which may include debt, equity, or a combination of both. Monitoring the Net Asset Value (NAV) of the funds can help track investment performance.
• Death Benefits: Since Unit Linked Insurance Plans also provide life insurance cover, they offer death benefits to the nominee. This refers to the amount paid to the nominee if the policyholder passes away during the policy term. The death benefit may vary depending on the policy structure and plan type, and is typically the higher of the sum assured, the fund value, or both.
• Maturity Benefits: Apart from death benefits, ULIPs also provide maturity benefits. If the policyholder survives the policy term, they are entitled to receive the maturity value, which represents the accumulated fund value at the end of the policy tenure.
• Withdrawal Benefits: This feature allows partial withdrawals from the ULIP investment after the mandatory lock-in period ends. It can be useful in situations where funds are required during the policy term, subject to policy conditions and applicable rules.

Given below are the different types of ULIPs, categorised based on their investment funds and policy structure:

• Based on Funds Options: A ULIP typically offers multiple types of funds, each with a distinct investment strategy. The funds you choose within the policy are invested in various financial instruments, such as equities, bonds, and money market instruments. Here’s a breakdown of the various types of ULIP based on the funds they offer:
  
  
  1. Equity Funds: These are among the most common options in ULIPs that primarily invest in stocks and equity markets, providing high growth potential. Due to their focus on equities, these funds tend to be riskier compared to other types, but they offer potentially higher returns over the long term. 
  2. Debt Funds: These are designed to provide more stable returns by investing in fixed-income instruments such as bonds, government securities, or corporate debt. Debt funds in ULIP are less volatile in comparison to the equity funds and offer lower but more predictable returns.
  3. Balanced Funds: These are also known as hybrid funds, and aim to strike a balance between equity and debt. These funds typically allocate a portion of the corpus to equities for growth potential and the rest to debt for stability and income. They are designed to offer a moderate level of risk and return.
  4. Liquid Funds: These are designed to offer a high level of liquidity and stability by investing primarily in short-term debt instruments like Treasury Bills, certificates of deposit, and commercial papers. These funds are generally suitable for individuals who want to maintain easy access to their money while earning a relatively stable return.
• Based on Purpose: ULIPs can also be categorised based on the financial objective they are designed to support. These plans are structured to help policyholders work towards specific life goals such as wealth creation, retirement planning, or securing a child’s future.
  
  
  1. ULIPs for Wealth Creation: These are designed for individuals looking to build long-term capital through market-linked investments. ULIPs for wealth creation typically offer multiple fund options and allow investors to grow their wealth over time while also benefiting from life insurance coverage.
  2. ULIPs for Retirement and Pension Planning: These are structured to help individuals build a corpus for their retirement years. These retirement ULIPs focus on long-term savings and wealth creation, with the primary goal of securing the policyholder’s financial future after retirement.
  3. ULIPs for Child’s Future Planning: These are specially designed to secure the future of a child, both in terms of education and financial security. Child future planning ULIPs are typically structured to accumulate a large corpus over a long investment period, providing a mix of life insurance and market-linked returns.
  4. ULIPs for Health: Some ULIP plans allow policyholders to add a critical illness rider to enhance the policy's protection component. Under this rider, the policyholder may receive a lump-sum benefit if diagnosed with a specified critical illness, as defined in the policy terms. While the ULIP investment remains market-linked, the rider adds an additional layer of financial protection against major medical conditions.
• Based on Premium Payment Options: ULIP plans may also differ based on how the policyholder chooses to pay the premium.
  
  
  1. Single Premium ULIP: In this type of ULIP, the policyholder pays a one-time lump-sum premium at the start of the policy term. The amount is then invested in the chosen funds for the entire duration of the policy.
  2. Limited Premium ULIP: Limited premium ULIPs require premium payments only for a specified period, while the policy benefits continue for the entire policy term.
  3. Regular Premium ULIP: In regular premium ULIPs, the policyholder pays premiums at regular intervals throughout the policy term, such as annually, semi-annually, or monthly.
• Based on Life Cover: The death benefit is an important component of a ULIP policy as it provides financial protection to the nominee in the event of the policyholder’s death during the policy term. Based on how the life cover is structured, ULIP plans are generally classified into two categories.
  
  
  1. Higher of Sum Assured or Fund Value: In this type of ULIP, the nominee receives either the sum assured or the fund value, whichever is higher, in the event of the policyholder’s death. The sum assured represents the minimum guaranteed life cover under the policy, while the fund value reflects the value of investments made in the chosen market-linked funds. Since the fund value is linked to market performance, it may fluctuate over time.
  2. Sum Assured plus Fund Value: In this type, the nominee receives both the sum assured and the accumulated fund value if the policyholder passes away during the policy term. Because the payout includes both components, this structure generally provides greater financial protection for dependents. As a result, premiums for these types of ULIPs are usually higher than those for the previous one. These plans may be suitable for individuals who wish to prioritise higher life cover and market-linked investment exposure.

Selecting the right ULIP fund depends on your risk appetite, investment horizon, and financial goals. The table below highlights which types of ULIP funds may suit different investor profiles.

Investors often compare ULIP plans with other popular investment options to understand how they differ in terms of protection, returns, flexibility, and tax treatment. The table below highlights the key differences between ULIP insurance and other investment instruments such as SIP, mutual funds, PPF, and fixed deposits.

The returns of ULIP plans are usually calculated in two ways which are listed below:

Absolute Returns:

Absolute returns calculate the percentage increase in the ULIP investment value. It’s essentially the difference between the current value of your investment and its value when you initially purchased the units, adjusted for any expenses like management and administrative charges.

Absolute Return = [(Current value − Purchase value) / Purchase value] × 100

For example, if you purchased your ULIP units for ₹450 and the value increased to ₹650 after one year, your absolute return would be:

Absolute Return = [(650 − 450) / 450] × 100 = 44.4%

This method works best for short-term investments where you're looking to see how much your investment has grown over a specific time frame.

CAGR (Compound Annual Growth Rate):

CAGR provides a more accurate measure of long-term growth, as it shows the annualised return over a set number of years. Unlike absolute returns, which give you a snapshot of growth, CAGR accounts for growth over multiple years and smooths out fluctuations, calculating the consistent growth rate your investment would have achieved annually to reach its current value.

CAGR = {[(Current value / Value at the time of purchase) ^ (1 / Number of years)] − 1} × 100

For instance, if your ULIP investment was worth ₹250 when purchased and its value grew to ₹350 over five years, the CAGR would be:

CAGR = [(350 / 250)^(1/5) − 1] × 100 ≈ 6.96%

CAGR is particularly useful for evaluating investments over longer periods as it reflects the annualised growth rate, helping you compare the performance of your ULIP investment with other investment options.

Tips to Maximise the Potential of Your ULIP Returns:

While returns can be measured using methods such as absolute returns and CAGR, investors can also take certain steps to optimise their ULIP investments over time.

• Choose Funds Based on Risk Appetite: Select equity, debt, or balanced funds based on your risk tolerance and financial goals

• Stay Invested for the Long Term: Remaining invested beyond the 5-year lock-in period may help your investment benefit from long-term market growth

• Use the Fund Switching Option: ULIPs allow you to switch between funds based on market conditions or changing financial priorities

• Consider Top-Up Investments: The top-up facility allows you to add additional funds to your ULIP policy when you have surplus savings

Claiming tax benefits for your Unit Linked Insurance Plans (ULIP) is relatively straightforward, but it is essential to understand the key sections under the Income Tax Act that apply to ULIPs. 

• Under Section 80C, the premiums paid towards your ULIP are eligible for a tax deduction of up to ₹1.5 lakh per year, helping reduce your taxable income. 

• The tax treatment of ULIP maturity proceeds depends on the date of policy issuance and the premium amount. For ULIP policies issued before 1 February 2021, the maturity proceeds are generally tax-exempt under Section 10(10D), irrespective of the premium amount. However, for ULIPs issued on or after 1 February 2021, the maturity amount may be taxable under the head “Capital Gains” if the aggregate annual premium exceeds ₹2.5 lakh, as per prevailing tax provisions.

• It is important to note that death benefits received by the nominee are fully exempt from tax under Section 10(10D).

• If a ULIP policy is withdrawn or surrendered before the completion of the mandatory five-year lock-in period, the proceeds may become taxable under the head “Income from Other Sources”, and any tax deduction previously claimed under Section 80C may also be reversed and added back to taxable income in that year.

To claim these benefits, ensure you maintain all relevant documents, such as premium receipts and policy details. When filing your tax returns, you’ll need to declare the premium paid under Section 80C, and the maturity or death benefits under Section 10(10D) may be treated as tax-exempt, subject to applicable conditions. If you surrender your policy, ensure it meets the criteria for tax-free treatment, especially if the lock-in period is over. Consulting a tax professional is always a good idea to ensure that you maximise the tax-saving potential from your ULIP investment.

Before investing in a Unit Linked Insurance Plan, you must know about the charges that you may have to pay throughout the policy term. The structure and applicability of charges may differ from one insurer to another, but here are some of the most common ULIP charges and fees.

Unit Linked Insurance Plan(ULIP) is a long-term investment instrument that helps you achieve financial goals in a structured manner. However, to make the most out of your Unit Linked Insurance Plan, you need to learn how to manage it wisely. You need to ensure that your returns are balanced across different asset classes so that any loss caused by one asset class may be offset by another, thereby minimising the overall risk of your investments. Here are some tips that will help you manage ULIP effectively

1. Balance Between Equity-Debt Portfolio: ULIP plans allow you to switch between different asset classes. Each asset has different characteristics, such as equity funds, which are ideal for investors who are comfortable with taking risks. It happens to be riskier than other funds but offers higher returns. On the other hand, debt funds generally carry lower risk but may offer relatively lower returns. They are often suitable for investors who are risk-averse. Thus, you need to balance the investment portfolio between equity and debt funds.
   
   
2. Stay Updated With the Market: It is advisable to keep yourself updated with the market trends and economic conditions, as this will help you make more informed investment decisions. For example, if you have invested in equity fundsmarket conditions change, making the equity market appear overvalued, you may consider switching to other fund options, such as debt funds. You may reallocate later based on the market trends.
   
   
3. Understand Life Stage Needs: Choosing between equity and debt funds mainly depends on your life stage needs and financial priorities. Thus, a policyholder needs to understand their evolving financial needs, as investors may become more risk-averse over time. Therefore, you may consider gradually shifting from equity funds to relatively stable debt funds as you get older.
   
   Overall, ULIP is a market-linked insurance plan. Keeping market fluctuations in mind, you need to manage them effectively to reduce risk and achieve higher returns.

ULIP NAV (Net Asset Value) is a crucial concept when it comes to understanding the performance and value of a ULIP. Just like mutual funds, the NAV of a ULIP represents the market value of the fund's underlying assets at a given point in time. It is essentially the price at which ULIP units are bought or sold.

The NAV is determined by subtracting the fund's liabilities from its total assets, then dividing the remainder by the total number of units in circulation. This gives you the per-unit value of your investment. Since ULIP invests in a variety of asset classes such as equities, debt, or a mix of both, the NAV fluctuates depending on how these underlying assets perform in the market.

For example, if the NAV increases over time, it indicates that the value of your investment may have grown, whereas a decrease in the NAV would suggest a reduction in its value. Understanding NAV is essential for investors as it helps them track the performance of their ULIP and make informed decisions about switching between funds or adjusting their investment strategy.

Choosing the right ULIP plan requires evaluating your financial goals, risk appetite, investment horizon, and life cover needs to ensure the plan aligns with your long-term financial strategy.

1. Choose the Fund Option That Aligns With Your Goal: ULIP policies provide you with the flexibility in choosing the funds you want. It will be better if you choose the fund options that can help you reach your goal effectively. Investing in equity can grow your funds higher in the long term but it also has a high risk involved. Whereas debt funds are safer and less reactive to market changes, but returns are safer, lesser. So, it is necessary to identify the goal first and then choose the fund accordingly.
   
   
2. Choose a Suitable Life Insurance Cover Amount: Other than providing the opportunity of investment, ULIP provides you with life coverage as well. This helps in securing your family in case something happens to you. So, in this regard, you must choose a life cover that will be sufficient for your family to achieve their goals.
   
   
3. Stay for as Long as You Can Under Your ULIP: ULIP are a long-term investment plan. So, it can give you the best results when you stay invested longer. This is why ULIP have a lock-in period of 5 years. The longer you stay in the policy, the more time you are giving your investments to grow. This will allow you to create huge wealth due to compounded returns.
   
   
4. Maximum Tax Saving Benefits of ULIP: ULIP plans provide you with tax benefits. There are deductions as per the Income Tax Act 1961available under various sections if you have invested in ULIP. These involve:
   • A deduction of up to ₹ 1.5 Lakh is available on the premium that is paid towards the policy under section 80C
   • Also, the maturity, as well as the death benefits received, are tax-free under section 10(10)D

Before investing in a ULIP plan, it is important to evaluate certain factors to ensure that the policy aligns with your financial goals and risk profile.

1. Risk Appetite: You must know your risk appetite before investing in a ULIP. This plan offers a wide range of funds to choose from based on your needs and risk appetite. Those who are reluctant to take risks can allocate a larger portion of their investment in debt funds, while those who are comfortable taking risks can go for equities
   
   
2. Charges in your ULIP: This investment cum insurance plan comes with a set of charges. Thus, before purchasing the policy, you need to understand the following charges: 
   • Mortality/Morbidity charges
   • Policy Administration charges
   • Fund Management charges
   • Premium Allocation charges
3. Flexibility: ULIP offers you the flexibility to switch between the funds. When buying a ULIP, you must consider the cost and ease of switching, as well as complimentary switches during the policy period.
   
   
4. Premium Payment Option: ULIP offers three payment options: single, limited, and regular. Therefore, compare and choose a plan that you are comfortable with.

ULIPs are popular financial instruments that offer a flexible and tax-efficient way to build wealth. However, they can be complex and often lead to mistakes that affect returns or policy effectiveness. To maximise the benefits of a ULIP, it’s important to be aware of the common pitfalls listed below and avoid them when making your purchase.

1. Not Understanding the Cost Structure: ULIP usually comes with various charges such as premium allocation charges, fund management fees, mortality charges, and administration charges. Failing to factor these in can lead to unexpected deductions from your investment returns. Always ask for a detailed breakdown of these charges and evaluate how they might affect your investment's overall growth.
   
   
2. Ignoring the Lock-In Period: ULIP typically comes with a lock-in period of five years, meaning you cannot withdraw your investment or make major changes during this time. Many investors overlook this aspect and may want to withdraw or make changes before the lock-in period ends, which could incur penalties or reduce the overall returns. Be sure you are ready for a long-term commitment before opting for a ULIP.
   
   
3. Overlooking the Fund Options and Risk Profile: Not all ULIP are the same, and each policy offers a variety of investment options, ranging from equity to debt and balanced funds. A common mistake is investing in a fund that doesn't align with your risk tolerance or financial goals.
   
   
4. Focusing Too Much on Short-Term Performance: ULIP are long-term financial products, and their performance needs to be evaluated over several years rather than in the short term. Many investors make the mistake of monitoring the short-term fluctuations in the Net Asset Value (NAV) and making hasty decisions based on market movements. ULIP are designed to deliver long-term growth, and reacting to short-term market conditions can lead to missed growth opportunities.
   
   
5. Forgetting About the Switching Charges: Many ULIP allow policyholders to switch between funds (equity, debt, or balanced), but frequent switching can attract charges. While switching can be a good strategy during market fluctuations, overdoing it can lead to unnecessary costs. Evaluate the switching charges and try to limit the number of changes to maintain your investment's cost-effectiveness.

Read the 5 mistakes to avoid when buying a ULIP Plan

Selecting the appropriate life cover in a ULIP plan is important to ensure that your family’s financial needs and long-term goals are adequately protected. The table below highlights key factors that can help determine the suitable life cover amount.

ULIP offers a range of additional riders that can be added to your policy to enhance its coverage and benefits. These riders are supplementary benefits that allow you to customise your ULIP plan according to your specific needs and financial goals. Here's an overview of the most common riders available with ULIP:

• Accidental Death Benefit Rider: This rider provides an additional sum assured in case of the policyholder’s death due to an accident. It enhances the death benefit and helps provide additional financial support to the nominee if the death occurs in unforeseen circumstances. The accidental dealth benefit rider is especially valuable for individuals who are at higher risk due to their occupation or lifestyle.
• Critical Illness Rider: A critical illness rider provides a lump sum benefit if the policyholder is diagnosed with a major illness such as cancer, heart attack, stroke, or kidney failure, among others as specified in the policy terms. This rider helps manage medical expenses related to treatment and can be a crucial addition for individuals looking to strengthen their financial protection against serious health conditions.
• Waiver of Premium Rider: In case of disability or critical illness, this rider waives the future premiums on the ULIP, ensuring that the policy remains active even if the policyholder is unable to pay premiums due to unforeseen circumstances. This rider guarantees that coverage and benefits will continue uninterrupted, even during financial hardships resulting from illness or injury.
• Income Benefit Rider: This rider provides a regular income support to the policyholder’s family/nominee in case of their untimely death. Instead of only a lump sum payout, the beneficiary receives periodic monthly payments, which can be beneficial for families looking for ongoing financial support.
• Total and Permanent Disability Rider: This rider ensures that if the policyholder becomes totally and permanently disabled, the insurance company will provide a financial benefit, which may be in the form of a lump sum payout or periodic income depending on the policy terms. The disability benefit helps policyholders maintain financial stability and support their families in case of a life-altering disability.

Understanding Unit Linked Insurance Plans (ULIP) can be daunting, especially given the jargon often associated with them. Familiarity with these terms will empower you to make informed decisions about your investment and insurance needs. Here’s a list of some of the common terms related to ULIP that you must stay aware of:

• Premium: The amount you pay either monthly, quarterly, or annually towards your ULIP, which can be divided into insurance and investment components

• Investment Fund: ULIP offers the flexibility to choose from various funds, ranging from equity funds to debt funds, where your premium is invested 

• Lock-in Period: ULIP have a mandatory lock-in period (typically five years) during which you cannot withdraw your investment, which is to encourage long-term investment and help in generate better returns

• Portfolio Management: The ability to switch between different investment funds within your ULIP, based on market conditions and your financial goals

• Death Benefit: In the unfortunate event of the policyholder's demise, the nominee is entitled to receive the applicable death benefit, which is generally the higher of the sum assured or the fund value, or both depending on the policy structure, ensuring the policyholder’s family

• Maturity Benefit: The sum payable to the policyholder at the end of the policy term, which includes the fund value accumulated over the years

• Surrender Value: If you choose to exit your ULIP before the lock-in period ends, the surrender value is what you will receive, which may be lower than the total premiums you’ve paid

• Top-Up: An additional investment made over and above the regular premium. It allows you to increase your investment in the ULIP and potentially boost returns

• Allocation Charges: A fee deducted from your premium before investment. The charge is typically a percentage based on the total premium paid

• ULIP Charges: These are the fees charged by the insurer for services such as managing investment funds, allocating premiums, and administering the policy

There are several misconceptions surrounding ULIP plans. Understanding the facts behind these myths can help investors make more informed decisions about ULIP investments.

Myth 1: ULIP are Costly

ULIP plans had a heavy charge structure around 2008. However, the IRDAI  intervened introduced regulatory changes, the cost of ULIP has reduced significantly over the years. If you are refraining from investing in ULIP due to the high cost, you don’t have to worry now.

Myth 2: ULIP is a Risky Investment Option

Under ULIP, investors are allowed to choose funds based on their risk appetite. ULIP come with several fund options, such as debt and liquid funds for low-risk investors, while equity funds for high and moderate risk investors.

Myth 3: Lock-in Period of 3 years

Earlier, the lock-in period for ULIP was three years. However, after 2010, IRDAI revised the guidelines, extending the lock-in period to five years. Now, ULIPs have a mandatory lock-in period of five years.

Myth 4: ULIP Does not Offer Flexibility

ULIP plans offer considerable flexibility to the investors. It provides the flexibility to switch between funds based changing market conditions or risk appetite. It also gives you the flexibility to partially withdraw money from your accumulated Fund Value before the policy matures.

Myth 5: Not a Good Option

ULIP plans combine life insurance protection with market-linked investments, making them a possible option for individuals looking to address both protection and long-term investment needs.

Myth 6: ULIP Provide Low Returns

ULIP plans offer the highest returns compared to other investment options if you choose wisely. It is one of the best investment options if you want to gain higher returns to fulfil your long-term goals.

Myth 7: ULIPs are Restrictive

This is not entirely accurate. There are no restrictions on exiting the ULIP plan. You can discontinue a ULIP at any time. If you decide to exit from the ULIP after the lock-in period, you can do so without paying any charges. However, surrender charges apply if you decide to exit before the lock-in period is over; you will be required to pay surrender charges.

Myth 8: Health and Accident Cover is not Provided in ULIP

This statement is also misleading. Apart from providing you with the dual benefits of investment and insurance in a single plan, ULIP also offers riders. You can receive additional protections, such as accidental death benefit or waiver of premium in the form of riders. ULIP also provides a partial withdrawal facility that can help you in times of emergency.