ULIPs, or unit-linked insurance plans, give insurees the double benefits of an insurance plan as well as investment in the capital market. A few more advantages of parking your money with ULIPs are:

- It is flexible: ULIPs offer investors the option of switching between funds, resulting in better choices to the investor. Investors can choose to invest in either debt or equity funds depending on their risk appetite and market conditions.

- Invest according to your risk appetite: ULIPs offer investors the option to pick and choose their investments based on their risk appetite. Low risk appetite investors can invest in debt funds, while those willing to take a higher risk can opt for equity funds.

- Tax benefits: With ULIPs being life insurance products, they offer tax benefits in the form of tax free maturity. However this tax benefit depends on the type of ULIP invested, as equity funds could be taxed 15% under certain conditions.

- Low charges: ULIPs do not have high charges associated with them. Insurance Regulatory and Development Authority of India (IRDAI) has capped the annual charge on ULIPs at 2-2.25% per annum for the initial 10 years, with the charges being on par with those of mutual funds.

- Long-term investment: ULIPs are long-term investment options due to the increased lock-in period which also reap bigger returns.