The term ULIP stands for Unit Linked Insurance Plan – a type of insurance offering two-fold benefits. It enables you to invest and achieve your long-term financial goals. In addition, ULIP offers a life cover that ensures financial security for your family in the event of an unfortunate incident.
Top performing plans with High Returns*
Invest ₹10K/month & Get ₹1 Crore returns*
Fund Details |
Fund Size |
NAV |
5 Year |
7 Year |
10 Year |
|
|---|---|---|---|---|---|---|
 Whole Life Mid Cap Equity Fund
Fund Size: 13,041 Cr
|
13,041 Cr |
155.97 -0.88% |
29.02% Highest Returns |
19.41% |
20.47% |
Get Details |
|
Top 200 Fund
Fund Size: 2,044 Cr
|
2,044 Cr |
178 -1.55% |
31.65% Highest Returns |
23.83% |
20.12% |
Get Details |
 High Growth Fund
Fund Size: 7,665 Cr
|
7,665 Cr |
119.16 -0.77% |
29.68% Highest Returns |
23.09% |
20.1% |
Get Details |
 Multiplier
Fund Size: 4,680 Cr
|
4,680 Cr |
100.49 -0.58% |
25.73% Highest Returns |
16.89% |
18.69% |
Get Details |
Fund Details |
Fund Size |
NAV |
5 Year |
7 Year |
10 Year |
|
|---|---|---|---|---|---|---|
|
Whole Life Stable Growth Fund
Fund Size: 256 Cr
|
256 Cr |
60.88 -0.26% |
15.92% Highest Returns |
13.23% |
12.62% |
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 Balanced Fund
Fund Size: 367 Cr
|
367 Cr |
48.16 -0.13% |
15.05% Highest Returns |
11.96% |
11.99% |
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|
Creator
Fund Size: 541 Cr
|
541 Cr |
100.45 -0.23% |
12.56% Highest Returns |
10.57% |
10.81% |
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 Balancer II
Fund Size: 890 Cr
|
890 Cr |
39.54 -0.11% |
13.99% Highest Returns |
11.11% |
10.77% |
Get Details |
Fund Details |
Fund Size |
NAV |
5 Year |
7 Year |
10 Year |
|
|---|---|---|---|---|---|---|
 Pure Fund
Fund Size: 575 Cr
|
575 Cr |
54.02 -0.37% |
21.81% Highest Returns |
14.73% |
15.22% |
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|
Builder
Fund Size: 243 Cr
|
243 Cr |
89.11 -0.06% |
8.47% |
7.98% |
9.01% Highest Returns |
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|
Whole Life Income Fund
Fund Size: 773 Cr
|
773 Cr |
37.75 0.00% |
6.75% |
7.05% |
8.27% Highest Returns |
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|
Conservative Fund
Fund Size: 235 Cr
|
235 Cr |
54.81 -0.03% |
7.87% |
7.07% |
8.02% Highest Returns |
Get Details |
Best ULIP Funds - Consider the best performing ULIP funds to invest in 2024 with Policybazaar. Find the list of best ULIP funds in India on the basis of Returns, Latest Nav, Fund Size and Categories
Returns as on 04-10-2024. The returns are the returns of best-performing fund in the plan
ULIP provides both insurance and investment benefits. In this, one part of the money goes towards life insurance, and the rest gets invested in long-term savings instruments such as stocks, bonds, or mutual funds.
ULIPs are popular because they offer flexibility to policyholders for choosing investment options and allocating funds according to their risk appetite and financial goals. Additionally, ULIPs provide tax benefits under the Income Tax Act of 1961.
Choosing a ULIP plan can be tedious, especially given the magnitude of options available in India. Here we discuss some points that can help all investors choose their best-suited ULIP plan.
Before investing in any ULIP plan, every investor must analyze their long-term financial goals. Choose the one that is in sync with your preferred investment tenure and future goals. They may vary from education of children to post-retirement needs. Prioritize investment goals to see which funds under a particular ULIP plan suit your future requirement.
Comparing ULIP plans to understand different features and advantages offered within a policy is essential. You can do so through our portal. Comparing different ULIPs will help you invest in the best investment plan.
Here are two things that an investor must take into account to compare ULIP plans on the parameters of flexibility:
ULIPs provide policyholders with a range of policy tenure options, typically ranging from 5 to 30 years. This flexibility allows investors to choose a policy tenure that best suits their financial goals and requirements.
ULIPs offer investors a range of investment options to choose from, depending on their risk appetite and financial goals. Policyholders can choose to invest their premiums in equity, debt, or balanced funds, depending on their investment preference.
Before selecting a ULIP plan, it is crucial to evaluate your personal risk tolerance and financial situation. Young investors who have a higher willingness to take risks may consider plans that have a greater focus on equity, even up to 100% allocation. For those prioritizing financial stability, it is wise to opt for a debt plan.
Each ULIP plan has distinct features and benefits. Having a proper understanding of the pros and cons of each plan can help choose best-suited unit-linked insurance plan.
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Besides basic policy features, ULIP plans offer additional advantages to its policyholders. Some of the important ones are explained below:
ULIPs offer the combined benefits of investment and insurance in a single product. As a policyholder, you can invest your money in various market-linked funds and get life coverage.
ULIPs offer a high degree of flexibility to investors. You can choose the amount of premium you want to pay, payment frequency, and fund options you want to invest in.
ULIPs offer transparency of charges and fund performance. The costs for ULIPs are regulated by the Insurance Regulatory and Development Authority (IRDAI), and insurers must disclose all charges upfront.
ULIPs offer tax benefits under Section 80C of the Income Tax Act, 1961. The premium paid towards the policy is deductible from the taxable income up to a maximum of Rs. 1.5 lakh per annum.
ULIPs are long-term investment products as they have the potential for wealth creation over a longer period. You can choose to stay invested in the product for a longer duration to reap the benefits of compounding.
ULIPs offer the flexibility to switch between funds per your investment goals and risk appetite. This allows the investors to customize their investment portfolio and maximize returns.
ULIP plans come with a lock-in period of 5 years that helps develop a disciplined investment habits among investors. Investors are bound to invest for a long duration to create a financial cushion for a long-term and gain maximum return on investment.
The following classes of investors must consider ULIPs for long-term wealth creation:
ULIPs are designed for investors with a medium to long-term investment horizon. Since ULIPs have a lock-in period of 5 years, investors can stay invested for a longer duration to yield higher returns.
ULIPs offer a range of funds that cater to investors with varying risk appetites. For instance, equity-based ULIPs are ideal for investors willing to take higher risks in exchange for potentially higher returns. On the other hand, debt-based ULIPs are suitable for investors who prefer a lower risk investment option.
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ULIPs are best classified based on their purpose and death benefits.
ULIPs based on their purpose are classified as follows:
ULIP for Retirement
ULIPs for Wealth Collection
ULIP for Child Education
ULIPs for Health Benefits
Unit linked insurance plans can also be categorised on different criteria or norms. ULIPs are classified into two categories depending on the death benefit – Type 1 and Type 2.
| Parameter | Type 1 ULIPs | Type 2 ULIPs |
| Lock-in period | 5 years | 5 years |
| Investment options | Equity, debt, or a mix of both | Equity |
| Charges | Lower charges | Higher charges |
| Transparency | More transparent | Less transparent |
| Returns | Market-linked returns | Returns depend on the market performance |
| Risk | Higher risk | High risk |
| Switching between funds | Unlimited and free | Limited and chargeable |
| Sum assured | At least 10 times the annual premium | At least 10 times the annual premium |
| Surrender value | Available after 5 years | Available after 5 years |
| Tax benefits | Tax benefits on premium paid and maturity amount | Tax benefits on premium paid and maturity amount |
Like other life insurance products, ULIP plans can be purchased online hassle-free. Consider these steps to buy ULIP plans online:
Go to Policybazaar's official website (www.policybazaar.com).
Navigate to the insurance section and select the "ULIP" category from the available options.
You will be asked to fill in essential details such as your age, coverage amount, policy term, and other relevant information. Provide accurate information to get the most suitable quotes.
Policybazaar will provide you with a list of ULIP plans from various insurance providers. Compare the features, benefits, premiums, and other factors to make an informed decision.
After analyzing the available options, select the ULIP plan that best aligns with your financial goals and risk appetite.
You will need to fill out a proposal form online, providing detailed personal and medical information.
Depending on the insurer's policies and the sum assured, you may need to undergo a medical examination. This is a standard procedure to assess your health condition.
Pay the premium for the selected ULIP plan through the available payment options on the website. Policybazaar usually offers multiple payment methods, including debit/credit cards, net banking, and digital wallets.
Once the payment is processed successfully, the insurance company will review your application. If everything is in order, they will issue the ULIP policy. You will receive the policy document via email or physical mail, depending on your preference.
Carefully review the plan document to ensure all the details are accurate and match your expectations. If there are any discrepancies or questions, contact Policybazaar or the insurance provider for clarification.
Mutual funds and ULIPs are often seen locking horns with each other. But which is better among them - ULIPs or Mutual Funds? The answer primarily depends on three factors:
Risk appetite
Investment goals
Existing financial health
For a better understanding of our readers, here we have briefly compared these investment options one by one.
| Aspect | ULIPs | Mutual Fund |
| Investment Objective | Provides both insurance and investment benefits | Only focuses on investment objectives |
| Costs | Higher expenses, including administration and management fees | Lower expenses, mainly in the form of management fees and transaction costs |
| Taxation | Tax-free on maturity and partial withdrawal, subject to certain conditions | Taxable on capital gains and dividends as per the income tax slab rate |
| Transparency | Higher transparency regarding fund allocation | Higher transparency regarding fund allocation |
| Insurance benefits | Provides life insurance coverage | No insurance benefits provided |
| Returns | Returns may vary depending on market performance and other factors | Returns may vary depending on market performance and other factors |
ULIPs do have certain charges associated with them that are divided into multiple categories. The following are the ones you must know:
Premium allocation charge: The fee charged by the insurance company for allocating the premium amount to various investment funds.
Fund management charge: The fee charged by the fund manager for managing the investment portfolio of the ULIP.
Mortality charge: The fee charged by the insurance company for providing the life cover under the ULIP.
Policy administration charge: The fee charged by the insurance company for maintaining the policy record and providing services.
Surrender charge: The fee charged by the insurance company if the policyholder decides to surrender the policy before the end of the lock-in period.
Switching charge: The fee charged for switching between different investment funds.
Partial withdrawal charge: The fee charged for making partial withdrawals from the investment corpus.
Discontinuance Charges: On premature discontinuation of a plan within the lock-in period, the insurer deducts a small fee. Since these charges are preset by IRDA, they are the same for almost all policies.
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Our goal at Policybazaar is to offer valuable support to investors seeking information on ULIP plans, making it easier for them to find the most suitable option. To simplify the process of comparing ULIP plans in India, our intelligent system has a built-in ULIP calculator that helps compute returns for various plans. Now is the time to secure a strong future by taking advantage of this opportunity and comparing ULIP plans on Policybazaar.
*All savings are provided by the insurer as per the IRDAI approved insurance
plan. Standard T&C Apply
Tax benefit is subject to changes in tax laws
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.
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