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Useful articles for your finance management by our team of experts

Do You Understand Ulips

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Lot has been said about ULIPs. But, as the time for investment declaration comes close the dream merchants come calling and you are likely to be bombarded with calls from agents and advisors. If you are planning to buy ULIP, then here are some quick facts you should know:

  • Unit Linked Insurance Policy (ULIP) is a long term instrument for Risk Protection with a lock-in period of 5 years
  • Do you know that every ULIP other than pension or Annuity has a Mortality of Health Insurance cover? Find out what is the minimum Benefit you will get on Death or Hospitalisation
  • Are you aware that Pension and Annuity ULIPs have a Minimum Guarantee Return on the maturity date? Find out what is the rate of guarantee offered on the date you propose to purchase your ULIP.
  • Do you know that every policy shall have a Benefit Illustration giving two yield scenarios -@6% and 10% and shall also give information regarding the various charges you have to bear? Find out what are the total charges involved. Remember that these charges will be deducted from the amount that is being invested on your behalf.
  • Have you found out how much premium you have to pay, how often and for how long? The minimum premium paying term is 5 years. Remember, for your policy to run full term you must pay your premiums on time.

Fill up the proposal form yourself after understanding the features of the policy completely. DO NOT sign a blank proposal form.

You may contact IRDA call centre at 155255 if your grievance has not been attended to by the insurance company or may approach insurance ombudsman, if applicable. For further more information visit




*This is a part of the IRDA’s public awareness initiative.



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