An insurance + returns deal

Investing

 Higher returns, tax savings under Section 88 to the tune of 20 per cent of annual contributions, subject to a maximum investment of Rs 70,000 in a year, have made ULIP much more endearing.

 Most life insurers today allow investors to decide on their choice of investment under the unit-linked plans. Thus, an investor can opt for a life cover up to a maximum of Rs 2 lakh.

 Unlike other insurance schemes, the investor can time the investments over any 12 months for the payment of premium.

 Moreover, ULIP is net asset value-based open-ended scheme and offers adequate liquidity unlike other tax-saving instruments, which have a minimum three-year lock-in.

 UTI Mutual Fund, Life Insurance Corporation of India, ICICI Pru Life, Birla Sun Life and Aviva are some players which offer such plans.

 Unit-linked policies offered by insurers fall under the Insurance Regulatory Development Authority