Unit-Linked Insurance Plans (ULIPs) are meant to guarantee your financial goals over the long-term. As a short term investment tool, they will not give you considerable return on your investments, because of a product cost structure which is higher in the initial years. However, overall charge structure for the term comes down substantially over a long period of time thus allowing greater allocation of your premium in the chosen funds.
Also in long term investment in ULIPs are less affected by temporary market fluctuations since data shows that over a long-term, market linked investments not only yield very attractive returns, but also have the least downside to them. To get the best out of your ULIP, you should remain invested in the ULIP for thelong-term of at least 8-10 years. This way, your investment will truly experience the power of compounding and thereby create greater wealth for you to fulfill your important goals.
