Best ULIP Plans For 2016-17

*Please note that the quotes shown will be from our partners

Unit Linked Insurance Plans or ULIP’s as it is commonly known as is an insurance product cum investment plan. Insurance companies have for long been offering ULIP’s to investors who are looking for insurance coverage as well as want their money to grow. With some of the best ULIP plans, investors can invest in several market tools like mutual funds, stocks and bonds. ULIP’s are a good choice as they allow the investor to choose market tools to invest in, and change their choice depending on how the market turns.

There are several ways to choose the best ULIP plans that will help your money grow. Let’s take a look at some of them briefly: 

  1. Buy ULIP’s that insurance companies offer online, these are easier to buy and invest in.
  2. Choose ULIP’s that offer investors a large array of options among the various asset classes. This will help you choose a plan that is suitable to you and works with the current market condition.
  3. ULIP charges are now regulated. Choose ULIP’s that come with the least expense, e.g. a structure with zero charge for mortality charges and fund management.
  4. ULIP’s that offer flexibility and options in premium payment is the one you need to invest in.
  5. ULIP’s with a wider term flexibility is much beneficial than the ones spread across a smaller frame of time, e.g. 5-20 years is much better than 10-20 years.
  6. Death benefit offered in ULIP’s is higher than sum assured as well as fund value. There are some insurance companies that offer ULIP investments with a third option. Here the insurance company offers to pay a percentage of the premium e.g. 105% of the premium. The investor eventually receives three amounts, fund value, sum assured and premiums. 

Balanced ULIP Fund (High Equity)

These are ULIPS with high equity allocation and annual returns of upto 10.2%. Here are three top ULIP plans in the high equity allocation based on 5 years of its annual return. 

ULIP - High Equity Allocation

1 year returns

3 year returns

5 year returns

SBI Life- Equity Elite Fund

21%

12%

13%

LIC of India - Future Plus Growth

28%

11%

12%

LIC of India - Money Plus I-Growth

33%

13%

11%

 

LIC ULIP funds have been doing really well in these years and have consistently been appreciated as being some of the top ULIP plans at present, how they perform in the next few years is yet to be seen.  

ULIP - Moderate Equity Allocation

1 year returns

3 year returns

5 year returns

LIC of India- Profit Plus Balanced

23%

11%

13%

ICICI Prudential Life - Health FlexiBalanced Fund

13%

10%

12%

LIC of India - Profit Plus Scheme

21%

10%

12%

 

Balanced ULIP Fund (Moderate equity)

This is the moderate equity allocation, 5 years of annual returns that range between 11%-13% is taken into consideration. The three best ULIP plans shown here in the moderate equity allocation is showcased here with its variations between 3 and 5 years of annualised returns. 

From the above chart you will notice that the moderate equity funds has an allocation of 13% to 12% in their last 5 year returns . Again LIC dominates this moderate equity category, while the others have been doing fairly well. However investors will still have to check on their performance and see how these funds sustain themselves in the near future. There are risks involved, especially if certain funds don't work well with certain market conditions. However since LIC is a well-known organization that has been in the forefront of top investment tools and best ULIP plans for years, you can place your trust here. 

 

ULIP

1 year returns

3 year returns

5 year returns

LIC of India- Child fortune plus secure

16%

9%

12%

LIC Of India- Money Plus I-Secure

21%

12%

11%

LIC of India - Fortune Plus Secure

10%

9%

10%

 

Balance ULIP funds (High debt allocation)

If you compare this category of balanced funds with top performing funds, the returns you receive is almost similar. These have high debt allocation, and with 5 years of annual returns at the rate of 8.3%. Lets take a look at the top three here.

These are the three best ULIP plans with an equity allocation ranging from 10%-12%. Again it is LIC life insurance that rules this table. LIC funds have been doing really well with their ULIP’s that have high debt allocation. However investors still need to understand how these funds work so that they can take a calculated risk which will help secure their future. 

There are several other categories in ULIP’s, like the; 

Medium Term ULIP Debt Fund, where Bajaj Allianz Life- Debt Plus, ICICI Prudential Life - Protector Fund II and the Bajaj Allianz Life - Debt Plus Fund are leading in this category. 

Short Term ULIP Debt Fund, has the HDFC Standard Life - Stable Managed Pension, HDFC Standard Life - Stable Managed Life and IDBI Federal Life - Income Fun leading in this category. 

The above mentioned ULIP’s are some of the best ULIP plans in the market and have high returns; however invest in ULIP’s that suit your requirement and meet your investment goals.   

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