MoneyRadar

Insurance

ULIP

Also known as: Unit Linked Insurance Plan

A product mixing insurance and investment, usually giving you a mediocre version of both.

A ULIP bundles life cover with market-linked investment, sold as a two-in-one deal.

In practice, high charges eat your returns and the life cover is often too small to matter.

The smarter move is almost always to separate the two: buy cheap term insurance and invest the rest in low-cost mutual funds.

For example

Instead of a ULIP, a ₹1 crore term plan plus a plain index fund SIP usually gives you both bigger cover and better returns for less.

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