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Unit Linked Insurance Plans(ULIP)
ULIPs are a variant of the traditional endowment plan and are suited for individuals with risk-appetite. The performance of ULIP is linked to performance of stock market. They pay out the sum assured on death or on maturity. ULIPs are similar to mutual funds. However, they differ in one aspect; they are a combination of investment and insurance, while mutual funds are a pure investment avenue.
ULIPs also come with fund choices which policyholders can choose depending on their risk capacity.
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