Frequently Asked Questions (FAQs)
Is ULIP market-linked?
Yes, ULIP is a comprehensive plan that combines insurance coverage and investment opportunities. Unlike traditional life insurance policies, ULIPs offer the chance to earn returns linked to the market.
Can we discontinue ULIP?
If you choose to discontinue your existing ULIP policy, you have the option to surrender it. However, it’s important to note that the Insurance Regulatory and Development Authority (IRDA) has established a mandatory lock-in period of 5 years for ULIP policies.
Does ULIP offer guaranteed returns?
No, ULIPs will not give assured or guaranteed returns. Being a ULIP, the investment risk in the portfolio is endured by the policyholder.
Is ULIP bad or good?
ULIPs can be a beneficial investment choice. They offer significant tax advantages under Section 80C of the Income Tax Act, allowing deductions on premiums paid. Additionally, the death benefits and maturity proceeds from ULIPs are tax-free and subject to prevailing tax laws.
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