What is ULIP Plan?

ULIP plans are investing your money into the equity market. It is same like the mutual funds, but ULIPs are providing the lifecover and linked to insurance policy. That is the reason why ULIPs are not good choice for treating it as the good insurance option. If you are looking into the coverage provided by the ULIPs, it is very low compare to the term insurance cover. Another drawback of the ULIP is charges on each instalment of the premium. Almost 25% of your premium will be deducted as the charges. Remaining amount will be invested into the market.