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IndiaInsurance
25th June 2010, 04:30 AM
In a significant reform of unit-linked insurance plans (Ulips), the finance ministry will seek to harmonise the character of these popular investment schemes with that of designated long-term savings schemes like provident funds which are eligible for tax exemption at the time of withdrawal. This means there will be strict guidelines which will disincentivise withdrawal of money from both Ulips and other savings schemes, making them truly long-term funds which could be invested in long-gestation infrastructure projects. With these changes and a mandatory life/health cover, Ulips will acquire the character of pure life insurance products a prerequisite for complete tax ...

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