Whole life Ulips: Low cost, life cover, tax-free withdrawals key benefits

They are complicated products. Read the fine print carefully before making a decision

The success of low-cost unit-linked insurance plans has encouraged life insurance companies to extend the concept to retirement savings. In the last one month, five players have introduced products which allow policyholders to create a corpus over a decade or more, and withdraw a fixed amount on a periodic basis (monthly, quarterly or yearly). These products are positioned as insurance products that would provide regular cash flows post-retirement.

Life insurers that are offering whole life Ulips include Bajaj Allianz Longlife Goal, HDFC Life Click2Wealth, Max Life Insurance - Online Savings Plan (Retirement), Canara HSBC Oriental - Invest 4G (Whole Life), and