Difference between ULIP and Gauranteed plans

Question

Accepted Answer

ULIP offers investment along with insurance, while Guaranteed plans provide fixed returns with insurance.

ULIPs offer flexibility to invest in various funds like equity, debt, or hybrid, while Guaranteed plans offer fixed returns regardless of market performance.
ULIPs have higher risk and potential for higher returns compared to Guaranteed plans which offer lower risk but lower returns.
ULIPs have charges like premium allocation, fund management, and mortality charges, while Guaranteed plans have no charges and offer guaranteed returns.
ULIPs allow switching between funds, partial withdrawals, and top-ups, while Guaranteed plans have limited flexibility.
Example: ULIP - HDFC Life Click2Invest, Guaranteed Plan - LIC Jeevan Umang

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