ULIPs (Unit-Linked Insurance Plans) are a financial product favoured by people looking for financial security for their family members and capital growth simultaneously. ULIPs combine life insurance and investment, making insurance policies more lucrative when it comes to the rate of return. Here, the amount of premium paid is partly diverted to life insurance, while a major portion is directly or indirectly invested in the stock market. Moreover, maturity proceeds on ULIP are taxable as LTCG (Long-term capital gains tax) such as the LTCG tax on all equity-oriented investments. With recent updates in tax rules, understanding ULIP taxation, its benefits, and associated charges is crucial for making informed investment decisions.