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Looks like you have posted your question in the wrong section. Please try and post finance related questions under the investment section,this will help you get speedy responses.
However, coming to your question, I had read about ULIP - Unit Linked Insurance Plans, in rediff money wizz. I will share with you the basics of what i understood.
1. Identify your investment goal.
2. Identify your investment horizon.
3. Identify the amount of money you can invest.
4. identify your insurance need.
Now after yo have identified all this please check if you are looking for Ulips to become rich or for insurance or for a mix of both,
The reason i ask is because, when you take a ULIP policy , you will pay either monthly, quarterly or yearly. Now the asset manager will allocate Units to your profile with that money. Now how many units are added is decided by the plan and also the term of policy.
In general, for any Ulip the first 3 years most of the fund goes to the Fund manager for asset allocation/management charge.
So please keep in mind one word, if you really want some profits from this and also enjoy insurance, never break you policy before maturity.
My suggestion will be, rather than ULIPS invest in Mutual funds and get a separate Life Insuarance, it will work out cheaper and give better returns!!
Hope that helped!
ULIP meaning is Unit Linked Insurance Plan and it was first introduced in India by UTI(Unit Trust of India).
ULIP is a combination of insurance and investment. I.e., some part of premium paid by the insured or policy holder goes to insurance coverage and remaining portion goes to investment which is done mostly in equand debt markets.
As ULIPs are directly linked to stock market performance, the risk is completely on the policy holder.So, before taking ULIP plans,we must read all the documents belongs to the plan.
Investment made in ULIP is eligible for Tax benefit to maximum of 1 lakh 50 thousand rupees under section 80C of IT act.