The correct answer is: D. Both plans are allowed by the IRDA in India.
Unit-linked insurance plans (ULIPs) and variable life plans are both types of life insurance policies that offer a combination of insurance and investment features. ULIPs invest in a mix of stocks, bonds, and other assets, while variable life plans invest in a specific type of investment, such as stocks or bonds.
Both ULIPs and variable life plans are allowed in India by the Insurance Regulatory and Development Authority (IRDA). The IRDA is the government body that regulates the insurance industry in India.
ULIPs have become increasingly popular in India in recent years, as they offer a way to combine life insurance with investment potential. Variable life plans are less common in India, but they offer a higher level of investment flexibility than ULIPs.
The choice of which type of life insurance policy to purchase depends on your individual needs and circumstances. If you are looking for a policy that offers both life insurance and investment potential, then a ULIP may be a good option for you. If you are looking for a policy that offers more investment flexibility, then a variable life plan may be a better choice.
Here is a brief explanation of each option:
- Option A: As per IRDA norms ULIPs are allowed but not Variable life plans. This option is incorrect, as both ULIPs and variable life plans are allowed in India by the IRDA.
- Option B: Only variable plans are allowed but not ULIP policies as per IRDA norms. This option is also incorrect, as both ULIPs and variable life plans are allowed in India by the IRDA.
- Option C: Neither of the above plans is allowed in India. This option is incorrect, as both ULIPs and variable life plans are allowed in India by the IRDA.
- Option D: Both plans are allowed by the IRDA in India. This option is correct, as both ULIPs and variable life plans are allowed in India by the IRDA.