What is ULIP

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what is ulip
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what is ulip
Unit Linked Insurance Policies or ULIPs are
insurance policies which offer you the potential
of wealth creation while providing the security
of a Life Cover. In ULIPs, a part of your premium
is dedicated towards your Life Cover and the rest
is assigned to a common pool of money, called
fund, which invests in equity, debt, or a
combination of both. The returns on
your investments depend upon the performance of
the fund opted by you.
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TAX BENEFITS
Under the Income Tax Act, 1961, you can save
tax on your hard earned money by investing in a
ULIP. You can get tax advantage at different
stages of your life insurance policy.Stage
1 Entry Advantage You receive tax benefits on
your premium payments, under the Sections
80C.Stage 2 Exclusive Switching Advantage You
can make completely tax-free debt-equity
switchesStage 3 Exit Advantage You also
receive a tax free Maturity Benefit subject to
conditions of Section 10(10D)