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ULIP Maturity Benefits
ULIP maturity benefits are designed to reward you for staying invested. When your policy term ends, you get the total value of your investments, giving a strong push to your finances. The maturity benefits in ULIP are a great way to ensure your future goals are within reach when you know that your money has grown and worked hard for you.
ULIP Plans
- Plan starting from ₹1,000/month
- Save upto ₹46,800 in Tax under section 80C^
- Zero LTCG Tax¶
- In built life cover
- 4.8++ Rated
- 12.02 Crore Registered Consumer
- 51 Partners Insurance Partners
- 5.9 Crore Policies Sold
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12.02 Crore
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Top performing plans˜ with High Returns**
Invest ₹10K/month & Get ₹1 Crore# Tax-Free*
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- ULIP Maturity Benefits
List of ULIP Funds ~
Fund Name
AUM
NAV
Returns (in %)
3 Year
5 Year
10 Year
Equity Fund
SBI
AUM:81,769 Cr
81,769 Cr
NAV
210.13
-1.08%
Returns
12.66%
Opportunities Fund
HDFC Standard
AUM:36,970 Cr
36,970 Cr
NAV
78.94
-0.21%
Returns
17.78%
High Growth Fund
Max Life
AUM:11,792 Cr
11,792 Cr
NAV
118.06
-0.42%
Returns
25.43%
Opportunities Fund
ICICI Prudential
AUM:3,553 Cr
3,553 Cr
NAV
62.33
-0.26%
Returns
15.64%
Multi Cap Fund
Tata AIA
AUM:9,302 Cr
9,302 Cr
NAV
65.44
-0.22%
Returns
18.88%
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Disclaimer :
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
What is a ULIP Policy?
ULIP means Unit Linked Insurance Plans. It is an investment plan that gives you a mix of investment and insurance benefits. A ULIP plan provides you with life coverage while allowing you to invest in market-linked funds such as equity, debt, hybrid, and index funds, based on your risk preference.
Meaning of ULIP Maturity Benefits
ULIP maturity benefits are the payout you receive when your ULIP policy ends. This payout includes the total value of your investments based on how well they performed during the policy term.
What are ULIP Maturity Benefits?
Listed below are the key maturity benefits provided by a ULIP Plan:
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Sum Assured: It is the amount of money that your loved ones will receive if you pass away during the policy term. It’s the guaranteed payout from your insurance policy.
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Fund Value: This is the current value of your investment in the policy. It changes over time based on how well the investments perform.
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Bonus: This is an extra amount added to your policy, which boosts the final payout you receive when the policy matures.
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Partial Withdrawal: You can take out a portion of your investment before the policy ends, giving you some financial flexibility if needed.
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Tax Benefits: You could get tax breaks on the money you receive at maturity, which can help reduce your tax bill according to current laws.
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Flexibility: You have the option to receive your payout as a lump sum or through regular withdrawals, depending on what works best for you.
Difference Between: Sum Assured vs. Fund Value
Let us learn about the key differences between Sum Assured and Fund Value from the table mentioned below:
| Criteria | Sum Assured | Fund Value |
| Definition | The guaranteed amount paid on death or maturity. | The total value of the investment in the policy. |
| Determination | Pre-determined at the policy's inception. | Varies based on the performance of the investment. |
| Purpose | Provides financial security to beneficiaries. | Reflects the growth of invested premiums. |
| Payment | Paid out in case of death or policy maturity. | Can be withdrawn or switched based on policy terms. |
| Risk | Low risk as it's a guaranteed amount. | Subject to market risks and investment performance. |
| Impact of Premiums | Premiums affect the sum assured only indirectly. | Directly influenced by the amount and allocation of premiums. |
| Flexibility | Fixed and unchangeable once set. | Can fluctuate and be adjusted according to market conditions. |
Taxation on ULIP Maturity Benefits
The below-mentioned points will give you the details of tax benefits provided by a Unit Linked Insurance Plan:
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Tax-Free Maturity: Generally, the maturity benefits from a ULIP are tax-free under Section 10(10D) of the Income Tax Act, as long as specific conditions are met.
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Conditions to Meet: To qualify for tax exemption, the policy should be active for at least 5 years, and the annual premium should not be more than 10% of the sum assured.
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If Conditions Aren't Met: If the premium exceeds 10% of the sum assured, part of the maturity benefit might be taxable.
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Capital Gains: Any growth in the investment is considered capital gains and is tax-free if the policy meets the exemption conditions.
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Tax Benefits on Premiums: Premiums paid into ULIPs are eligible for tax deductions under Section 80C, up to ₹1.5 lakh per year.
Latest ULIP NAVs
| Fund Name | NAV  |
AUM |
5 Yr Returns |
10 Yr Returns | |
|---|---|---|---|---|---|
| SBI Life Balanced Fund | ₹73.34 | ₹22084 Cr | 8.63% | 10.26% | |
| SBI Life Bond Fund | ₹50.23 | ₹17457 Cr | 5.24% | 6.88% | |
| SBI Life Equity Fund | ₹200.24 | ₹83975 Cr | 11.74% | 12.49% | |
| SBI Life Equity Optimiser Fund | ₹54.84 | ₹2728 Cr | 11.92% | 12.08% | |
| SBI Life Growth Fund | ₹94.27 | ₹3040 Cr | 10.52% | 11.78% | |
| SBI Life Money Market Fund | ₹36.35 | ₹434 Cr | 5.68% | 6.04% | |
| SBI Life Top 300 Fund | ₹57.07 | ₹2025 Cr | 11.3% | 12.87% | |
| SBI Life Pure Fund | ₹25.83 | ₹1192 Cr | 10.13% | - | |
| SBI Life Bond Optimiser Fund | ₹22.32 | ₹3285 Cr | 7.36% | - | |
| SBI Life Bluechip Fund | ₹9.97 | ₹3014 Cr | - | - | |
| SBI Life Balanced Pension | ₹73.51 | ₹807 Cr | 9.18% | 11.09% | |
| SBI Life Bond Pension | ₹44.56 | ₹526 Cr | 5.11% | 7.13% | |
| SBI Life Equity Pension | ₹74.8 | ₹11823 Cr | 12.72% | 13.24% | |
| SBI Life Growth Pension | ₹73.37 | ₹634 Cr | 11.01% | 12.24% | |
| SBI Life Money Market Pension | ₹33.6 | ₹138 Cr | 5.63% | 6.04% | |
| SBI Life Equity Optimiser Pension | ₹58.7 | ₹989 Cr | 11.87% | 12.87% | |
| SBI Life Top 300 Pension | ₹55.23 | ₹716 Cr | 11.26% | 12.9% | |
| SBI Life Midcap Fund | ₹47.42 | ₹52995 Cr | 19.67% | - | |
| SBI Life Corporate Bond Fund | ₹16.3 | ₹1049 Cr | 5.27% | - | |
| SBI Life Equity Elite II | ₹51.9 | ₹12638 Cr | 10.86% | 11.92% | |
| SBI Life Index | ₹48.57 | ₹112 Cr | 12.28% | 12.87% | |
| SBI Life Index Pension | ₹50.7 | ₹30 Cr | 12.38% | 12.9% | |
| SBI Life Discontinued Policy Fund | ₹25.23 | ₹9697 Cr | 5.58% | 6.09% | |
| SBI Life Equity Elite | ₹88.79 | ₹13 Cr | 14% | 14.87% | |
| SBI Life P-E Managed | ₹38.68 | ₹231 Cr | 9.73% | 10.53% | |
| SBI Life Guaranteed Pension GPF070211 | ₹26.37 | ₹3 Cr | 5.08% | 6.83% | |
| SBI Life Bond Pension II | ₹23.3 | ₹29479 Cr | 5.03% | 6.51% | |
| SBI Life Equity Pension II | ₹42.38 | ₹12763 Cr | 12.03% | 12.98% | |
| SBI Life Money Market Pension II | ₹20.53 | ₹1549 Cr | 5.38% | 5.76% | |
| SBI Life Discontinue Pension Fund | ₹21.29 | ₹6566 Cr | 5.56% | - | |
| SBI Life Group Growth Plus Fund | ₹57.21 | ₹3 Cr | 8.93% | - | |
| SBI Life Group Debt Plus Fund | ₹40.17 | ₹113 Cr | 6.34% | - | |
| SBI Life Group Balance Plus Fund | ₹48.23 | ₹11 Cr | 7.49% | - | |
| SBI Life Group Balance Plus Fund II | ₹26.43 | ₹809 Cr | 7.46% | - | |
| SBI Life Group Debt Plus Fund II | ₹26.02 | ₹232 Cr | 6.33% | - | |
| SBI Life Group Growth Plus Fund II | ₹26.73 | ₹240 Cr | 9.02% | - | |
| SBI Life Group Short Term Plus Fund II | ₹21.38 | ₹21 Cr | 5.9% | - | |
| SBI Life Group Money Market Plus Fund | ₹12.44 | ₹2 Cr | 1.03% | - |
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What Happens to ULIPs After Maturity?
When your ULIP matures, you get the amount that's accumulated in your fund, and investors planning long-term wealth creation often evaluate the best SIP plans to align with their financial goals, which makes it easier to decide whether to withdraw the proceeds, reinvest them elsewhere, or use them as per personal financial needs. This amount includes the investment returns and any bonuses, and you are free to take the money out, invest it somewhere else, or use it however you like.
How to Claim a Maturity Benefit?
To claim your maturity benefit, follow these steps:
-
Complete the Claim Form: Fill out the maturity claim form provided by your insurance company.
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Submit Required Documents: Attach necessary documents like your policy bond, proof of identity, and any other required paperwork.
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Send to the Insurer: Submit the completed form and documents to your insurance provider.
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Receive Payment: Once processed, you’ll receive your maturity benefit as a lump sum or as per your policy terms.
Other Benefits of a ULIP Plan
The key benefits of a ULIP plan are mentioned below:
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Growth Potential: ULIPs allow your premiums to grow through investments in various funds, such as equity or debt.
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Flexibility: You can choose different funds based on your risk tolerance and financial goals.
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Tax-free Death Benefits: In case of your demise, the death benefit received by your nominee is generally exempted from income tax under Section 10(10D) of the Income Tax Act, 1961.
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Life Coverage: In addition to investment opportunities, ULIPs provide life insurance coverage.
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Easy Withdrawals: After the lock-in period, you can make partial withdrawals if you need cash.
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Fund Switching: You have the flexibility to switch between funds to adapt to market changes.
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Extra Contributions: You can add extra amounts to your plan to enhance your investment without adjusting your regular premium.
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FAQs
-
Can I stay invested in ULIP after maturity?
No, once a ULIP matures, you cannot stay invested. The maturity amount is paid out to you. -
Are ULIP maturity amounts tax-free?
Yes, ULIP maturity amounts are tax-free under Section 10(10D) of the Income Tax Act, provided the premium does not exceed 10% of the sum assured or the annual premium payment is below ₹2.5 lakhs, whichever is lower. -
What is the return of ULIP after 10 years?
The return on a ULIP after 10 years depends on the fund's performance, but it typically ranges between 9-15% annually, depending on market conditions. -
What happens if I don't pay the ULIP premium after 5 years?
If you stop paying premiums after 5 years, the policy may become paid-up, reducing the sum assured and future benefits, but it will not lapse. You will receive the fund value at maturity.
˜The insurers/plans mentioned are arranged in order of highest to lowest first year premium (sum of individual single premium and individual non-single premium) offered by Policybazaar’s insurer partners offering life insurance investment plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance
plan.
^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.
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^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.
Insurers Offering ULIPs
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or
insurance product offered by an insurer.
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