Understanding the Different Types of ULIPs: Which One Suits You? 💡

The  mortality charges go down as the fund value goes up. Let us say  person buys a type I ULIP that gives her a sum assured of Rs. 5 lakh for an annual premium of Rs. 50 000. In case of death in the initial years of the policy, when the fund value is less than the sum assured, the insurer will pay the agreed sum (which here is Rs. 5 lakh) to the nominee.