Looking to invest? Lower charges mean higher returns in online Ulips

Insurers have waived several charges for an attractive online product, making them a low-cost investment option

Unit-linked investment plans (Ulips), once the poster child of a lousy investment option, are now transforming into an attractive, low-cost investment product. The journey of change has been a steady one. The second generation came in after the regulator capped charges. The real change, however, began with the launch of low-cost Ulips in 2015, including the online version, which addressed the transparency-related concerns of customers. Now we have the fourth generation of Ulips – the enhanced online version – that were launched towards the end of the last calendar year.

To attract customers, insurers decided to remove policy administration and