ULIP is a life insurance product, which provides risk cover for the policy holder along with investment options to invest in any number of qualified investments such as stocks, bonds or mutual funds. What is the full form of ULIP?

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Unit Linked Insurance Policy
B	Unit Linked Instant Plan
C	Universal Linked Insurance Plan
D	Unit Linked Insurance Plan

Explanation:

Detailed explanation-1: -Unit Linked Insurance Plan (ULIP) is a life insurance product, which provides risk cover for you along with investment options to invest in any number of qualified investments such as stocks, bonds or mutual funds.

Detailed explanation-2: -The full form of ULIP is Unit Linked Insurance Plan. A ULIP is an insurance plan that offers the dual benefit of investment to fulfil your long-term goals, and a life cover‘ to financially protect your family in case of an unfortunate event. The premium paid towards a ULIP is divided into two parts.

Detailed explanation-3: -ULIP is an insurance product that offers investors the option of both insurance and investment under a single integrated plan. The policyholder can also make use of the top-up facilities, switching between funds, reduce or increase the level of protection, additional riders and option to surrender.

Detailed explanation-4: -Risk factor: Since ULIP investment is not as diversified as compared to ELSS, the risk in ULIP is probably a bit high compared to schemes like ELSS. Investment horizon:ULIPs have a lock-in period of 5 years. If a ULIP is surrendered in the first three years, the insurance cover would cease immediately.

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