ULIPs or Unit-Linked Insurance Products provide insurance coverage along with serving as an investment tool. Are you wondering how to save taxes and how to invest in SIP? Then ULIPs are an excellent option out there. They can generate substantial returns in the long run and are the best bet if you are looking for an investment to save tax. Here are some factors that you need to consider before buying this plan.

1. Parent Company
Its solvency ratio and settlement ratio measure the trustworthiness of the insurer. Choose a company with a solvency ratio of 150%. Also, choose an insurer with a good settlement ratio as it indicates that the insurer commits to its clients.

2. Insurer’s Commitments
Choose an insurer with long term perspective as ULIPs are long-term investment products. Also research about the fund manager’s investment approach and track record.

3. Performance of the Fund
Analyse the ratings of various funds and consider its track record before investing your money in Unit-Linked Insurance Products.

4. Price
Compare the charges (such as administration, allocation, and fund management charges) by various insurers before finalising one.

So if you are wondering how to invest in SIP and save taxes, choose ULIP.
Besides these, there are several other things to remember while buying a ULIP tax-saving plan.