Download the Policybazaar app
to manage all your insurance needs.
Premium Redirection in ULIPs (Unit-Linked Insurance Plans)
ULIPs offer a combination of life insurance protection and market-linked investment potential. But what if your risk tolerance or financial goals change over time? This is where premium redirection comes in. It empowers you to be an active manager of your ULIP plan, allowing you to strategically adjust how your future premiums are invested within the plan's fund options.
- 4.8++ Rated
- 12.02 Crore Registered Consumer
- 51 Partners Insurance Partners
- 5.9 Crore Policies Sold
ULIP Plans
- Plan starting from ₹1,000/month
- Save upto ₹46,800 in Tax under section 80C^
- Zero LTCG Tax¶
- In built life cover
We are rated++
12.02 Crore
Registered Consumer
51
Insurance Partners
5.9 Crore
Policies Sold
Top performing plans˜ with High Returns**
Invest ₹10K/month & Get ₹1 Crore# Tax-Free*
-
Home
-
Life Insurance
-
Ulip Plans
-
Articles - UP
- Premium Redirection in ULIPs (Unit-Linked Insurance Plans)
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%
see more plans
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 Premium Redirection in ULIPs?
Premium redirection in ULIPs is a feature that allows you to change how your future premiums are invested within the plan. It basically lets you adjust your investment strategy over time. Let's say you initially invested more in equity funds for higher returns, but now want to shift towards a safer investment option like debt funds. Premium redirection allows you to direct your future premiums to the debt fund instead.
When to Redirect Your Premium in ULIPs?
-
Change in risk appetite: As you get closer to your financial goals or retirement planning, you might want to move towards less risky options by redirecting premiums to debt funds.
-
Market opportunities: If you believe a particular fund (equity or debt) has good potential, you can redirect premiums to capitalize on that.
-
Life stage changes: Milestones like marriage or nearing retirement might prompt you to adjust your investment strategy through premium redirection.
Difference Between Premium Redirection and Fund Switching
Fund switch and premium redirection are often believed to be the same thing, but they have a key difference: the key difference is when the change is applied.
-
Premium redirection impacts your future investments. Let's say you're currently investing 100% in equity funds but want to reduce risk. With premium redirection, you can choose to allocate your upcoming premiums to a debt fund instead. This leaves your existing investments untouched, but future money goes towards the fund you select now.
-
Fund switching affects your existing investments. Imagine the same scenario: 100% equity funds. With a fund switch, you can move some or all of your existing units from the equity fund to a debt fund or vice versa. This allows you to adjust your current portfolio allocation.
Difference Between Premium Redirection and Portfolio Management Strategies
Both premium redirection and portfolio management strategies are strategies for managing your investments within a Unit Linked Insurance Plan (ULIP), but they work in different ways:
-
Premium Redirection
-
Focuses on future premium allocation.
-
Allows you to choose how upcoming premiums are invested within the ULIP's available fund options (e.g., equity, debt, balanced).
-
Doesn't affect how your existing investments are allocated.
-
Useful for adapting your investment strategy based on changing risk tolerance or market conditions.
-
May require manual intervention each time you want to change allocation.
-
-
Portfolio Management Strategies
-
Automates the investment process.
-
You choose a pre-defined strategy based on your risk appetite (e.g., aggressive, balanced, conservative).
-
The strategy automatically allocates your premiums across different funds to maintain a desired asset allocation.
-
This allocation may rebalance periodically to maintain the target risk profile.
-
Less hands-on approach, but limits your control over individual investments.
-
Latest ULIP NAVs
| Fund Name | NAV  |
AUM |
5 Yr Returns |
10 Yr Returns |
|
|---|---|---|---|---|---|
| SBI Life Balanced Fund | ₹74.77 | ₹22439 Cr | 9.37% | 10.13% | |
| SBI Life Bond Fund | ₹50.41 | ₹18103 Cr | 5.32% | 6.97% | |
| SBI Life Equity Fund | ₹208.22 | ₹82996 Cr | 13.25% | 12.23% | |
| SBI Life Equity Optimiser Fund | ₹56.4 | ₹2715 Cr | 13.12% | 11.78% | |
| SBI Life Growth Fund | ₹97.22 | ₹3064 Cr | 11.7% | 11.64% | |
| SBI Life Money Market Fund | ₹36.21 | ₹429 Cr | 5.65% | 6.06% | |
| SBI Life Top 300 Fund | ₹58.78 | ₹2006 Cr | 12.67% | 12.62% | |
| SBI Life Pure Fund | ₹27.39 | ₹1182 Cr | 12.41% | - | |
| SBI Life Bond Optimiser Fund | ₹22.57 | ₹3286 Cr | 7.76% | - | |
| SBI Life Bluechip Fund | ₹10.32 | ₹2655 Cr | - | - | |
| SBI Life Balanced Pension | ₹74.97 | ₹772 Cr | 9.93% | 10.98% | |
| SBI Life Bond Pension | ₹44.65 | ₹513 Cr | 5.17% | 7.2% | |
| SBI Life Equity Pension | ₹77.41 | ₹11050 Cr | 14.28% | 12.9% | |
| SBI Life Growth Pension | ₹75.56 | ₹608 Cr | 12.18% | 12.08% | |
| SBI Life Money Market Pension | ₹33.47 | ₹131 Cr | 5.61% | 6.06% | |
| SBI Life Equity Optimiser Pension | ₹60.68 | ₹947 Cr | 13.22% | 12.61% | |
| SBI Life Top 300 Pension | ₹56.82 | ₹682 Cr | 12.6% | 12.64% | |
| SBI Life Midcap Fund | ₹49.22 | ₹49420 Cr | 21.63% | - | |
| SBI Life Corporate Bond Fund | ₹16.34 | ₹1058 Cr | 5.33% | - | |
| SBI Life Equity Elite II | ₹53.31 | ₹12622 Cr | 11.99% | 11.65% | |
| SBI Life Index | ₹50.36 | ₹115 Cr | 13.91% | 12.57% | |
| SBI Life Index Pension | ₹52.51 | ₹30 Cr | 13.98% | 12.59% | |
| SBI Life Discontinued Policy Fund | ₹25.18 | ₹9761 Cr | 5.47% | 6.14% | |
| SBI Life Equity Elite | ₹91.53 | ₹13 Cr | 15.43% | 14.63% | |
| SBI Life P-E Managed | ₹39.86 | ₹238 Cr | 10.74% | 10.29% | |
| SBI Life Guaranteed Pension GPF070211 | ₹26.34 | ₹3 Cr | 4.94% | 6.81% | |
| SBI Life Bond Pension II | ₹23.36 | ₹29557 Cr | 5.08% | 6.58% | |
| SBI Life Equity Pension II | ₹43.7 | ₹12893 Cr | 13.46% | 12.66% | |
| SBI Life Money Market Pension II | ₹20.45 | ₹1553 Cr | 5.35% | 5.78% | |
| SBI Life Discontinue Pension Fund | ₹21.24 | ₹6722 Cr | 5.44% | - | |
| SBI Life Group Growth Plus Fund | ₹58.21 | ₹3 Cr | 9.76% | - | |
| SBI Life Group Debt Plus Fund | ₹40.42 | ₹113 Cr | 6.52% | - | |
| SBI Life Group Balance Plus Fund | ₹48.8 | ₹11 Cr | 7.88% | - | |
| SBI Life Group Balance Plus Fund II | ₹26.79 | ₹805 Cr | 7.86% | - | |
| SBI Life Group Debt Plus Fund II | ₹26.13 | ₹227 Cr | 6.46% | - | |
| SBI Life Group Growth Plus Fund II | ₹27.3 | ₹238 Cr | 9.72% | - | |
| SBI Life Group Short Term Plus Fund II | ₹21.39 | ₹21 Cr | 5.85% | - | |
| SBI Life Group Money Market Plus Fund | ₹12.44 | ₹2 Cr | 1.06% | - |
See more plans
Why is the Premium Redirection Feature Useful?
Premium redirection is useful for investors who want to be flexible with their ULIP investment. It lets you adjust how future premiums are invested based on market conditions or your risk tolerance. Imagine it as changing where your next paycheck goes - more towards aggressive investments when you're feeling bold, or towards safer options during market downturns.
Trending in ulip plan
FAQs
-
What is the premium charge in ULIP?
This is a one-time deduction from your first-year premium to cover initial expenses like policy issuance, agent commissions, and administrative costs. -
What is the premium payable towards a ULIP?
The premium payable towards a ULIP is the amount you pay regularly (monthly, quarterly, or annually) to keep the policy active. This premium is then divided:-
A portion goes towards life insurance coverage.
-
The remaining amount, after deducting any charges, gets invested in your chosen fund option(s) within the ULIP.
-
-
How often can I use premium redirection?
This depends on your specific ULIP plan. Some insurers allow redirection with every premium payment, while others may have limitations. Always refer to your policy documents or contact your insurer for details. -
Are there any charges associated with premium redirection?
Generally, premium redirection does not incur additional charges. However, it can vary from insurer to insurer; some ULIPs may limit the number of free redirections allowed per year.
˜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.
- SIP Calculator
- Income Tax Calculator
- Compound Interest Calculator
- NPS Calculator
- Show More Calculator
Investment Calculator
- One time
- Monthly
₹
/ Year
Sensex has given 10% return from 2010 - 2020
View plans
Ulip plans articles
Recent Articles
Popular Articles
02 Jul 2025
The Sahara Life ULIP Plan Calculator is a reliable online
24 Jun 2025
Planning your future needs both protection and wealth creation.
24 Jun 2025
Axis Max Life Flexi Wealth Advantage Plan is a unit-linked
05 Jun 2025
The Bandhan Life ULIP calculator is a financial tool that helps
05 Jun 2025
The Reliance ULIP Plan Calculator is a reliable financial toolExplore the popular searches and stay informed
- ULIP Calculator
- ULIP Plan
- 50k Pension Per Month
- Annuity Plan
- Atal Pension Yojana Calculator
- Best Pension Plan in India
- Best SIP Plans
- Child Investment Plan
- Child Plan
- CIBIL Score
- Deferred Annuity Plans
- Government Schemes for Girl Child
- HDFC SIP Calculator
- Immediate Annuity Plans
- Investment Plan
- LIC Calculator
- LIC
- NPS Interest Rate
- Pension Plan
- Post Office Child Plan
- Prime Minister Schemes For Boy Child
- Retirement Planning
- SBI Annuity Deposit Scheme Calculator
- SBI SIP Calculator
- SBI SIP
- SIP Calculator
- SIP
- Sukanya Samriddhi Yojana Interest Rate
- Sukanya Samriddhi Yojana
- 1 Crore Term Insurance
- Best Term Insurance Plan
- Term Insurance for Women
- Term Insurance for NRI
- Term Insurance
- Term Insurance Calculator
- Life Insurance
- Term Insurance with Return of Premium
- Whole Life Insurance
- Term Insurance vs Life Insurance
- What is Term Insurance
- Life Insurance Calculator
- 5 Crore Term Insurance
- 2 Crore Term Insurance
- 50 Lakh Term Insurance
- Term Insurance for Housewife
- Benefits of Term Insurance
- Term Insurance Terminology
- Medical Tests for Term Insurance
- Term Insurance for Self Employed
- Claim Settlement Ratio
- 10 Crore Term Insurance
- Term Insurance for Smokers
- 1.5 Crore Term Insurance
- Zero Cost Term Insurance
- FIRE Calculator