Union Budget 2025, Feb. 3 -- The budget has introduced immense clarity on the tax treatment of the Unit Linked Insurance Policies. Specifically those ULIP's that don't fall or qualify for the exemptions provided under Section Section 10(10D) of the Income Tax Act.

A Unit Linked Insurance Plan (ULIP) joins investment and life insurance as a product. Part of the paid premium provides life cover, whereas the rest is invested in equity, debt, or both.

This is entirely based on the investment goals and risk appetite of investors. ULIPs hence help in securing the long-term future of investors and are considered as less riskier assets.

ULIPs combine both life insurance and mutual fund investments in one asset class. Professionals invest money...