A ULIP plan has different types of charges. Some of them include the following â€“
o Premium allocation charge â€“ deducted from the premium
o Mortality charge â€“ deducted from the fund value to provide life insurance cover
o Fund management charge â€“ deducted from the fund value to pay for the professional management of the chosen investment fund
o Policy administration charge â€“ deducted from the fund value towards the administrative charged incurred by the insurer
o Policy discontinuance charge â€“ if you surrender the policy within the lock-in period of 5 years.
o Switching charge â€“ as and when applicable
o Partial withdrawal charge â€“ if applicable
o Miscellaneous charge â€“ for other applicable charges.