A Term Plan is a pure life insurance product that provides coverage for a specified period or term, such as 10, 20, or 30 years. If the insured person dies during the term, the nominee (beneficiary) receives a death benefit. However, if the policyholder survives the term, there is no payout, and the policy expires without any return.
A ULIP is a life insurance product that combines both insurance and investment. A part of the premium paid by the policyholder is used for life coverage, while the remaining amount is invested in various financial instruments like stocks, bonds, or mutual funds based on the policyholder's choice. The value of the investment fluctuates with the market performance.
