The correct answer is C. Both I and II.
Unit-linked insurance plans (ULIPs) and variable insurance plans (VIPs) are both non-traditional saving life insurance products that are permitted in India. ULIPs are a type of investment-linked insurance product that combines life insurance with investment in units of a mutual fund. VIPs are a type of unit-linked insurance plan that invests in a basket of assets, such as stocks, bonds, and other securities.
Both ULIPs and VIPs offer a number of advantages over traditional life insurance products, such as greater flexibility and control over your investments, the potential for higher returns, and tax benefits. However, they also come with some risks, such as the potential for losses in your investments.
If you are considering investing in a non-traditional saving life insurance product, it is important to understand the risks and potential rewards involved. You should also consult with a financial advisor to determine which product is right for you.
Here is a brief explanation of each option:
- Option A: Only I. This option is incorrect because VIPs are also permitted in India.
- Option B: Only II. This option is incorrect because ULIPs are also permitted in India.
- Option C: Both I and II. This option is correct because both ULIPs and VIPs are permitted in India.
- Option D: Neither I nor II. This option is incorrect because both ULIPs and VIPs are permitted in India.