The ULIP, or insurance plan, offers two main benefits to policyholders. Such insurance works as an insurance plan as well as an investment plan. LICs allow clients to choose the amount they want to invest; part of this investment is taken as a premium for insurance coverage, and the rest is invested in the stock market. It should be said that investment insurance plans bring high income when they are invested for five or ten years.
Policyholders have the choice of investing in stocks or bonds, or a combination of both, depending on their investment needs. Similar to mutual funds, units are allocated to the policyholder, each with a net asset value (NAV). Another ULIP benefit is that there is a certain blocking period, for example three or five years, during which the policyholder cannot withdraw money he has invested in the market. However, one can choose and change the various securities in which money is invested during the investment period.
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