The Evolution of ULIPs: Trends and Innovations in Investment

Are you looking for an investment option that offers long-term financial growth along with life coverage? If so, you have probably come across unit-linked insurance plans (ULIPs). The ULIPs have gained immense popularity among young investors in recent years due to their unique features. However, understanding the intricacies of ULIPs, including their meaning and tax benefits, can be a daunting task.

In this article, you will explore ULIP's meaning, latest trends in ULIP investments, types of ULIP plans and ULIP tax benefits associated with these investment instruments.

What are ULIPs?

A ULIP plan is an insurance-cum-investment product that provides policyholders with both life insurance coverage and an opportunity to invest in various market-linked funds. With ULIPs, you can allocate your premium towards different asset classes such as equity, debt, or balanced funds. Now that you know the ULIP meaning, you must know that the returns generated by these funds depend on the performance of the underlying investments