Death and maturity benefits are offered with ULIPs. If the policyholder meets with an untimely demise prior to the maturity of the term, the beneficiary receives the fund value, or the Sum Assured, depending on whichever is higher or even both in some cases. Once the policy matures, the policyholder gets the fund value or the Sum Assured, again, whichever is higher as per the terms of the policy. Both of these benefits are tax-free.