ULIP (Unit Linked Insurance Plan)
✓ Last verified 14 Sep 2026
The short version
A ULIP combines life insurance with a market-linked investment component in one product - part of your premium buys life cover, part gets invested in funds you choose, with returns that depend on market performance.
Unlike a traditional endowment plan's typically fixed/modest returns, a ULIP's investment portion is market-linked - you generally choose an allocation across equity and debt funds, similar to a mutual fund, but bundled with a life insurance component. Like all bundled insurance-investment products, a ULIP is worth comparing against "buy term insurance, invest the difference separately" (see our term vs. traditional insurance article) - the bundled structure often carries higher overall charges than pursuing each goal through a dedicated product suited to it.
Want this worked out for your own numbers?