Unit linked insurance plan (Ulip), a type of life insurance policy offered by life insurance companies combining life insurance with investment, explained in less than a minute.
Unit linked insurance plans (Ulips) are primarily investment plans which also provide life insurance. Ulips are flexible investments that help an investor invest in both equities and debt in different proportions offered by life insurance companies.
The risk associated with the investment is entirely borne by the policyholder.
Just like mutual funds, investors are allotted units every time they pay the premium. Depending on the investment performance, the value of units go up or down.
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