Attractive though they are, scrutinise costs before you invest in Ulips

After the recent run up in equity markets, it would be prudent to opt for a mix of equity and debt funds

The demand for unit-linked insurance plans (Ulips) is on the upswing. A recent survey conducted by Bajaj Allianz Life Insurance found increased affinity among respondents towards Ulips. Other insurers, too, have witnessed higher demand for this product in recent times.

The key factor driving demand is the buoyancy in equity markets. “The performance of equity markets over the past months has led to renewed interest in Ulips,” says Bharat Kalsi, chief financial officer, Bajaj Allianz Life Insurance. He adds that with interest rates within the economy at low levels, investors are looking for alternatives that can help them beat inflation,