ULIP stands for Unit Linked Investment Plan. These are similar to mutual funds but comes with insurance plans. Your money will be invested by experts of the insurance company in stock and debt markets (as you choose how much in each). Your money will grow/lost as per the stock markets and debt schemes that the fund is invested in.
You will be charged with AMC and other charges as per your ULIP company policies and also charge you the premium amount for the insurance you took.
Usually ULIP funds are locked in for 3-5 years during this time you cannot take out your money and has to stay with your fund. After that you can continue or withdraw from the fund.