All Ulips, pension products to now come with life cover

The insurance watchdog IRDA has made it mandatory for insurance companies to provide life cover for all Unit Linked Insurance Plans (Ulips), including pension products. These companies cannot sell pension products on a unit linked platform without a life cover. The tightening of rules is seen as a fallout of the spat between the capital markets regulator Sebi and Irda over the regulation of Ulips, one of the hottest investment products in a bull run. Last month, Sebi barred 14 insurers from selling these products without its approval. The ban was, however, lifted after the government’s intervention. The turf war over the jurisdiction of Ulips will now be resolved by courts.