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A Unit Linked Insurance Plan is a financial product commonly known as ULIP that offers the dual benefits: life insurance and investment with flexibility. The policyholders retain the flexibility of investing his/her savings and converting them amongst the various types of mutual funds provided by the life insurance companies. ULIP is a multi-featured product that combines the benefits of risk sharing, insurance and investment. However, the investment in a unit linked insurance plan works like a mutual fund and does not come with guaranteed returns, unlike traditional plans, money back, whole life or endowment policies. After the arrival of ULIP maximum numbers of policies were sold out by the marketers' and maximum premiums were collected from the investors'. ULIP was introduced in the market at the time season of market euphoria. During that period, the policy holders were easily used to get high returns and handsome of money because of the stock market reaching new heights every day. This led to the emergence of life insurance plan which is linked to the market returns and within no time, this plan became a huge success.
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