ULIP Plan is a life insurance product that offers risk cover for the insured together with investment options to invest in some qualified investments like mutual funds, bonds, and stocks. As one integrated plan, the protection part and the investment part can be managed depending on the specific choices and needs.

In these plans, the investments are subjects to the risks associated with the capital market. The policyholder bears the investment risk on his/her investment portfolio. Hence, it is recommended to make an investment choice basis the needs along with the risk appetite.

Another factor that has to be taken into consideration by the policyholder is the future needs of the invested funds. Moreover, a unit linked plan is much more transparent. The charges including fund management charges, allocation charges etc. are clearly stated upfront.

Unit Linked Insurance Plan also allows its investors to switch their investment from debt to equity and vice-versa, without running from pillar to post and any worries of being charged.