All About Unit Linked Insurance Plan (ULIP)

Unit Linked Insurance Plan (ULIP)

Unit Linked Insurance Plan (ULIP) is a combination of investment and insurance. In this plan insurance company puts a portion of the amount for life insurance and rest of the portion in equity-oriented a mutual fund or debt- oriented mutual fund. This division of amount to be invested is based on the long-term goals of an investor like retirement planning, children’s education, marriage, etc.

  1. Investment is allowed as a deduction under section 80C up to Rs 1.5 lakh
  2. Interest is not taxable
  3. Interest Rate keeps fluctuating depending ULIP Fund Performance
  4. Minimum Investment Amount differs for insurance companies
  5. No limit on Maximum Investment

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