Producer: Priyanka Das Editor: Manuj Yadav
A Unit Linked Insurance Plan (ULIP) is a financial product that combines life insurance coverage with investment options.
Part of the premium paid by the policyholder goes towards providing life insurance coverage, and the remaining part is invested in equity, debt, or hybrid funds as per the policyholder’s choice.
Unlike traditional insurance plans, ULIP returns are not guaranteed and depend on how the market performs.
It’s not purely an investment. You get insurance coverage along with the investment option.
ULIP ads can still promote the benefits of the product, but they must be transparent about the risks involved.
The Insurance Regulatory and Development Authority of India (IRDAI) recently issued a master circular barring the promotion of ULIPs as ‘investment products’.
ULIPs in India are regulated by the IRDAI, which has laid down comprehensive guidelines to ensure consumer protection, transparency, and fair practices in the marketing and administration of ULIPs.