ULIP, or unit-linked insurance plan is a life insurance product, which provides risk cover for the policy holder along with investment options to invest in any number of qualified investments such as stocks, bonds or mutual funds. ULIP is a combination of two very important financial needs- insurance and investment. One can manage the investment and insurance part of the ULIP according to his/her needs and choices.

As it invests its funds in equity market too, ULIPs are subject to risks associated with the capital markets. This investment risk in the investment portfolio is borne by the policy holder.

Thus, one must make his/her investment choice after carefully considering his/her risk appetite and needs.

While contemplating purchasing a ULIP, one must also consider what his/her future financial needs will be like. Insurance providers in India offer customers a variety of unit-linked insurance products to suit their various financial goals - be it for retirement planning, for health, for child's education and marriage or for investment purposes.