Author : VS Warrier
Unit Linked Insurance Plan (i.e. ULIP) is a Scheme combining benefits of Life Insurance as well as Investment in the stock market. In ULIP, part of the premium amount is paid towards Life Insurance while the rest (after Administrative Charges) is invested in the Stock Market. Therefore, ULIP provides the financial safety as well as opportunity for wealth creation.
After formation of Unit Trust of India in 1963, it started a Scheme US-64 to assimilate small savings and provide benefits of Stock market to the investors. ULIP was launched in 1971 for the first time to give such benefits to the investors. This is scheme is having 2 Plans with duration of 10 Years and 15 Years and premium is payable on half yearly and yearly basis in Jan and July every year. The payment in the Plan is eligible for tax benefit under section 80C of the Income Tax Act, 1961.