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Day: May 18, 2020

Mistakes to avoid before investing in ULIPs

Mistakes to avoid before investing in ULIPs

Finance
The insurance sector has a plethora of options that provide coverage for life as well as health ailments. But one such product that is increasingly gaining popularity in the life segment is a Unit Linked Insurance Plan or as popularly referred to as ULIP. What is ULIP? Unit Linked Insurance Plan as the name suggests is an insurance tool that has an investment component attached to it. A ULIP generates returns to the investor by investing in various funds - equity-based, debt-based etc. Unlike a pure insurance policy, the insured has the protection of life cover, and investment prospects both included in the amount of insurance premiums. Moreover, ULIP benefits include a deduction for the premiums paid under Section 80C of the Income Tax Act. The maturity benefits are also exempt from ...