what are ULIP policies……………?



can some one please clarify me what does it mean by ULIP policy and how does it
differs from other policies..
can we claim tax exemptions for ULIP policies.

4 Replies to “what are ULIP policies……………?”


  1. ULIP is unit linked insurance policy. It’s an investment into funds that are divided into units. It’s likely that there is no tax paid on any investment gains or income taken from the fund, but I don’t think there will be any exemptions. Unlike some other investments there is usually no tax liability for any profit you make, because it is paid for within the fund. I can’t help you much more because i don’t know the tax rules where you live. If you are UK based what I’ve said is certainly true. if you’re not in the UK do some research online and I’m sure you’ll find the answer quite quickly.


  2. ULIP = Unit Linked Ins. Policy….in simple terms, its a mutual fund initiated by an Ins. Co. & has a life cover attached too. All tax benefits of an Ins policy like 80C, 10(10D) are applicable.


  3. Hi,

    ALL insurance is either life insurance or general insurance. Under life insurance there are various kinds of products to suit your various insurance needs.The different kinds of life insurance products are, whole life policy, term plan, endowment policy, money back schemes & ULIP.

    ULIPs are insurance plans that double up as mutual funds. The annual premium you pay on ULIPs is linked to the sum assured and the policy tenure. Though in the first year your premium amount is a bit large, as the years go by your premium amount tapers. This yearly premium in your policy period is invested in an investment of your choice, and you are allocated units, based on the net asset value of the plan you have opted for. Just like a mutual fund.

    You can switch from one investment option to another free once a year. For example, if you think that stocks are doing well you can opt for a growth plan,but later if you feel that stocks are being overvalued you can opt for an income plan.

    ULIPs are for individuals who understand investing ad the stock market but leave it to the experts to do the active money management.

    Future Generali has a new ULIP up for grabs post the changed regulations for ULIPs in India. Its called the Select Investment Plan where you can choose from five investment options. With the new regulations, agent commissions have been slashed, so you pay much less in your first year of premium.





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