Legacy plan: Whole-life Ulips can be used to bequeath funds outside of Will

In a whole-life Ulip, the sum assured can also be higher than regular Ulips, where it is 10 times the annual premium

The wealthy high networth individuals (HNIs) seem to have found a new instrument to pass on their wealth with little or no tax impact–unit-linked whole life policies. These policies allow holders to save during their living years, and on death leave the corpus for their beneficiaries. Whole life plans have been around for several years. Earlier, they were available only as traditional plans that offered low returns. With the same feature available in Ulip format now, an insured can earn market-linked returns.

Insurers say that whole life Ulips are like a ‘mini trust’ that can help a policyholder bequeath funds. “In