I will demystify the ULIP plan, which is widely used everywhere now-a-days! To state it fast and simple, it is a plan with both Investment and Insurance with Tax benefit. Sounds cool? But it isn't really. Lets see how. ULIP is Unit Linked Insurance Plan, which means they are going to invest in shares (similar to mutual fund) and also give insurance in the meantime as well. There are charges (hidden) everywhere. There are Fund Management charge, Mortality charge, Allocation charge etc., for a ULIP plan and this will be more in the first few years based on the plan. Usually, based on the plan, I year - 15% to 65% II year - 3% to 15% III year - 3% to 15% There is not much charges from the third year in plans offered by few companies out there. So, where these high charges go? Do they really need this much for managing your fund? 1. There should be some amount for giving you insurance and this can't and shouldn't be invested. So, it constitutes fair percentage based on your ...