Unit Linked Insurance Plan (ULIP) is a product that offers life insurance as well as investment. Part of the premium goes towards sum assured (insurance cover) and the balance goes to investments.
Compared to Traditional Insurance Plans ULIPs are better if serviced properly. ULIPs are more transparent and flexible than the Traditional Insurance plans. ULIP gives the investors the flexibility of Fund Switching. Through the methods of fund switching, higher income can be generated. Insurance product service under ULIP is not limited to premium collection. Fund switching is absolutely essential in ULIPs.
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