Which of the below statement is true regarding ULIP’s?

A)
ULIP’s are opaque with regards to their term, expenses and savings components
B)
Value of the units is determined by a formula fixed in advance
C)
Investment risk is borne by the insurer
D)
ULIP’s are bundled products

Correct Answer : Option (A) - ULIP’s are opaque with regards to their term, expenses and savings components



ULIP's are transparent with regards to their term, expenses and savings components. The value of each unit of a fund is determined by dividing the total value of the fund's investments by the total number of units.

Published On : June 1, 2021
Category : Insurance and Finance