Question

What do you mean by ULIP? Enumerate the factors to be considered in selecting ULIP.

Answer 1

Answer:

Cost of ULIP: A ULIP has various costs like mortality, allocation charges, fund management charge etc. ... Since ULIP charges are adjusted against returns, be careful to choose a ULIP with low cost. For example, consider two plans, one with a total cost of 1.5% and another with a cost of 2.5%. On a premium amount of Rs.