What are the risks associated with the investment in growth option of the units of a unit-linked insurance plan?
Gauri Shankar, Bengaluru
When you choose a growth plan for investment, you must be aware that the investment in the units is subject to market and other risks and there can be no assurance that the objectives of any of the plans will be achieved. The performance of the schemes depend a lot on the movement of financial and debt markets from time to time, and may also be affected by changes in the general level of interest rates. You must bear in mind that the past performance of the fund is not necessarily indicative of the future performance. Normally, such plans do not offer a guaranteed or assured return. All benefits payable under these plans are subject to the tax laws and other financial enactments, as they exist from time to time. In case the unit value is inadequate to cover the charges of the insurers, the life cover under the policy automatically gets terminated.
