What are the Limitations of Investment in ULIP?

Minimum and Maximum Investments in ULIP

ULIP Returns Calculation

Investment Limitations in ULIP

Benefits of Investing in ULIP

FAQs About Limitations of Investment in ULIP

Is ULIP a better investment than Fixed Deposits? up-arrow

ULIPs are considered better investment instruments than FDs. Besides covering you with life insurance, they also give you chances of earning money by investing a part of your premium in different investment channels. This versatility makes them a good place to invest your money in.

Is it risky to invest in ULIPs? up-arrow

Investors often consider ULIP risky investments because of the built-in investment components. They allow you to invest in different investment instruments like debt funds and the stock market, which offer returns depending on financial market fluctuations.

Can I withdraw money from ULIP after two years? up-arrow

You can only withdraw money from your ULIP scheme after a 5-year lock-in period by paying the regular premium amount during these years. If you try to withdraw any money within this period, the insurance provider will charge you a surrender fee.

What happens to a ULIP scheme after maturity? up-arrow

Once the ULIP scheme has fulfilled its maturity tenure, the policyholder gets the amount invested and insured. In case of the policyholder’s demise, the nominee gets the money.