18 July 2008
ULIP is an abbreviation for Unit Linked Insurance Policy. A ULIP is a life insurance policy which provides a combination of risk cover and investment.
The dynamics of the capital market have a direct bearing on the performance of the ULIPs.
Remember that in a unit linked policy, the investment risk is generally borne by the investor.
Investment returns from ULIP may not be guaranteed.” In unit linked products / policies, the investment risk in investment portfolio is borne by the policy holder”. Depending upon the performance of the unit linked fund(s) chosen; the policy holder may achieve gains or losses on his/her investments. It should also be noted that the past returns of a fund are not necessarily indicative of the future performance of the fund.
Before investment one has to verify the approved sales brochure for • all the charges deductible under the policy • payment on premature surrender • features and benefits • limitations and exclusions • lapsation and its consequences • other disclosures
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