Yes, ULIPs do allow switching between equity, debt, or balanced funds depending upon the investment goals and performance of the market. Most insurers provide a limited number of free switches in a year and charge a nominal charge for additional switches.

Since ULIPs are market-linked products, the investment risks associated with them are similar to those associated with mutual funds. Your returns on investment are not guaranteed and depend upon the performance of the underlined funds. You must know your risk tolerance before investing.

If you stop paying premiums in that tenure, then either the policy may lapse or become paid-up; it depends on what the insurer provides. Whereas as after the lock-in period, the policy will continue with reduced benefits, or you may opt to surrender your policy.

The ULIP premiums are allowed as deduction under Sec 80C of the Income Tax Act, 1961, within the overall limits provided therein. Further, the maturity proceeds are exempt from tax under Sec 10(10D) provided certain conditions are met.

ULIPs are an ideal vehicle for investors whose investment objective is long-term and also seek returns that have some element of wealth creation along with insurance. They are ideal for those having a moderate to high-risk appetite and a long-term investment horizon.

ULIPs can be directed towards the realization of any kind of financial goal, whether it is for funding your child for education, purchasing a house, or planning for retirement. Given that you choose the right funds and investment horizon, ULIP investments may be correctly aligned with your specific financial objectives.

Yes, ULIPs offer tax-saving benefits under Sec 80C of the Income Tax Act. By investing in a ULIP, you can reduce your taxable income, apart from insuring your life and accumulating possible wealth growth.

With long-term growth-oriented funds, ULIPs can thus become a very effective tool for retirement planning. Over time, this corpus accumulation will help in creating a regular stream of income at the time of retirement and supplement other retirement savings also.

Yes, ULIPs can be used to finance your children's education by choosing an appropriate investment plan matching the timeline for the educational expense. The policy will provide funds needed at the time of education expenses either in the form of a lump sum or regular payout.

Besides this, ULIPs permit partial withdrawals after the lock-in period for particular financial needs that may arise due to any eventuality, education, or other financial goals. The remaining investment keeps on growing with the life cover.