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Sum Assured in ULIP
Sum Assured in a Unit Linked Insurance Plan (ULIP) is the guaranteed amount paid to your nominee in case of your untimely demise. This sum aims to provide financial protection to loved ones alongside potential returns from the investment component.
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
- 13.2 Crore Registered Consumer
- 53 Partners Insurance Partners
- 6.29 Crore Policies Sold
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- Sum Assured in ULIP
List of ULIP Funds ~
Fund Name
AUM
NAV
Returns (in %)
3 Year
5 Year
10 Year
Equity Fund
SBI Life
AUM:80,948 Cr
80,948 Cr
NAV
184.92
3.94%
Returns
11.03%
Global Blue Chip Anchor Strategy
HDFC Life
AUM:0 Cr
0 Cr
NAV
9.83
-9.83%
Returns
-
High Growth Fund
Axis Max Life
AUM:12,147 Cr
12,147 Cr
NAV
107.05
2.98%
Returns
24.2%
Highest Returns
US Growth Fund
ICICI Prudential Life
AUM:0 Cr
0 Cr
NAV
0.00%
Returns
-
Multi Cap Fund
Tata AIA Life
AUM:9,767 Cr
9,767 Cr
NAV
59.77
1.20%
Returns
17.75%
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 the Sum Assured in ULIP?
In a ULIP (Unit Linked Insurance Plan), the Sum Assured is the guaranteed minimum amount your nominee receives if something happens to you during the policy term.
It acts as a financial safety net, which is usually calculated as a multiple of your annual premium.
The ULIPs offer you investment opportunity along with a life cover, however, the Sum Assured provides you the core protection element, by ensuring that your loved ones are financially supported even if the markets are underperforming.
How Does the Sum Assured in ULIP Work?
The working of the Sum Assured in a ULIP plan is simple, as mentioned below:
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Premium Allocation: A portion of the premium goes toward life insurance (Sum Assured), and the rest is invested in funds chosen by the policyholder.
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Death Benefit: In case of death, nominees receive either the sum assured or fund value, whichever is higher.
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Maturity Benefit: On policy maturity, only the fund value is paid.
Difference Between Sum Assured, Maturity Benefit, and Fund Value in ULIP
The Sum Assured, Maturity Benefit, and Fund Value are the key elements of a ULIP Plan. The key differences among them are mentioned in the following table:
| Feature | Sum Assured | Maturity Benefit | Fund Value |
| Definition | Minimum payout to beneficiaries on policyholder's death | The amount received if the policyholder survives the policy term | Current value of invested funds |
| Calculation | Fixed at policy start; based on premium and age | Depends on total premiums and policy performance | The market value of units in funds chosen |
| Purpose | Financial protection for dependents | Encourages policyholders to stay invested long-term | Reflects policy's investment growth |
| Payment Timing | Paid on death during the policy term | Paid at the end of the policy term | It can be checked anytime but paid on maturity or surrender |
Tax Benefits on Sum Assured in ULIP
The tax benefits offered by a ULIP Plan are listed below:
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Premium Deduction: Premiums paid qualify for a deduction of up to ₹1.5 lakh under Section 80C.
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Death Benefit Exemption: Sum Assured payouts to nominees are tax-exempt under Section 10(10D).
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Long-term Capital Gains (LTCG) Exemption: In most cases, ULIP investments qualify for LTCG exemption, provided certain conditions are met.
How Do You Get Payouts in ULIP?
The following are the ways through which you get paid in a ULIP Plan:
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Maturity Payout: At maturity, you receive the fund value based on your investment's growth. This is tax-free if premiums meet certain limits.
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Partial Withdrawals: After 5 years, you can withdraw part of your funds for emergencies without affecting the entire investment.
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Death Benefit: If the policyholder passes away, the nominee gets either the sum assured or the fund value, whichever is higher.
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Regular Payouts: Some ULIPs let you receive maturity benefits over time in regular payouts, lump sum, or a mix of both.
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Fund Switching: You can switch between funds to adjust for market changes, impacting future payouts.
Latest ULIP NAVs
| Fund Name | NAV  |
AUM |
5 Yr Returns |
10 Yr Returns | |
|---|---|---|---|---|---|
| SBI Life Balanced Fund | ₹70.3 | ₹21359 Cr | 7.42% | 9.76% | |
| SBI Life Bond Fund | ₹50.57 | ₹17003 Cr | 5.79% | 6.91% | |
| SBI Life Equity Fund | ₹184.92 | ₹80948 Cr | 9.06% | 11.58% | |
| SBI Life Equity Optimiser Fund | ₹51.23 | ₹2662 Cr | 9.56% | 11.34% | |
| SBI Life Growth Fund | ₹89.47 | ₹2939 Cr | 8.6% | 11.16% | |
| SBI Life Money Market Fund | ₹36.62 | ₹439 Cr | 5.74% | 6.02% | |
| SBI Life Top 300 Fund | ₹53.8 | ₹1983 Cr | 9.07% | 12.14% | |
| SBI Life Pure Fund | ₹24.76 | ₹1145 Cr | 8.09% | - | |
| SBI Life Bond Optimiser Fund | ₹22.14 | ₹3230 Cr | 7.25% | - | |
| SBI Life Bluechip Fund | ₹9.27 | ₹3071 Cr | - | - | |
| SBI Life Balanced Pension | ₹70.86 | ₹796 Cr | 8.12% | 10.66% | |
| SBI Life Bond Pension | ₹44.97 | ₹523 Cr | 5.67% | 7.19% | |
| SBI Life Equity Pension | ₹69.46 | ₹11587 Cr | 9.94% | 12.42% | |
| SBI Life Growth Pension | ₹70.18 | ₹620 Cr | 9.24% | 11.69% | |
| SBI Life Money Market Pension | ₹33.85 | ₹140 Cr | 5.69% | 6% | |
| SBI Life Equity Optimiser Pension | ₹54.94 | ₹966 Cr | 9.55% | 12.17% | |
| SBI Life Top 300 Pension | ₹52.28 | ₹704 Cr | 9.1% | 12.22% | |
| SBI Life Midcap Fund | ₹45.54 | ₹52985 Cr | 16.63% | - | |
| SBI Life Corporate Bond Fund | ₹16.41 | ₹1027 Cr | 5.66% | - | |
| SBI Life Equity Elite II | ₹48.59 | ₹12256 Cr | 8.59% | 11.17% | |
| SBI Life Index | ₹44.46 | ₹107 Cr | 9.49% | 11.73% | |
| SBI Life Index Pension | ₹46.41 | ₹28 Cr | 9.61% | 11.76% | |
| SBI Life Discontinued Policy Fund | ₹25.42 | ₹10703 Cr | 5.77% | 6.1% | |
| SBI Life Equity Elite | ₹82.68 | ₹13 Cr | 11.47% | 14.02% | |
| SBI Life P-E Managed | ₹36.84 | ₹222 Cr | 8.33% | 9.94% | |
| SBI Life Guaranteed Pension GPF070211 | ₹26.54 | ₹3 Cr | 5.3% | 6.82% | |
| SBI Life Bond Pension II | ₹23.45 | ₹29073 Cr | 5.56% | 6.55% | |
| SBI Life Equity Pension II | ₹38.98 | ₹12265 Cr | 9.06% | 12.05% | |
| SBI Life Money Market Pension II | ₹20.68 | ₹1537 Cr | 5.46% | 5.74% | |
| SBI Life Discontinue Pension Fund | ₹21.46 | ₹6890 Cr | 5.77% | - | |
| SBI Life Group Growth Plus Fund | ₹55.25 | ₹3 Cr | 7.96% | - | |
| SBI Life Group Debt Plus Fund | ₹40.15 | ₹112 Cr | 6.49% | - | |
| SBI Life Group Balance Plus Fund | ₹47.63 | ₹11 Cr | 7.25% | - | |
| SBI Life Group Balance Plus Fund II | ₹26.05 | ₹863 Cr | 7.2% | - | |
| SBI Life Group Debt Plus Fund II | ₹26.08 | ₹278 Cr | 6.65% | - | |
| SBI Life Group Growth Plus Fund II | ₹25.86 | ₹235 Cr | 8.07% | - | |
| SBI Life Group Short Term Plus Fund II | ₹21.57 | ₹20 Cr | 6.11% | - | |
| SBI Life Group Money Market Plus Fund | ₹12.46 | ₹2 Cr | 0.98% | - |
See more plans
Key Points to Remember to Invest in ULIP Plans
Following are some of the important factors to consider before you decide to invest in a ULIP Plan:
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Sum Assured Selection: Choose a sum assured based on your family’s future financial requirements.
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Risk Appetite: Align fund choices with your risk tolerance; ULIPs offer equity, debt, or balanced funds.
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Tax Benefits: Take advantage of ULIP tax exemptions, especially for long-term goals.
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Policy Term: Opt for longer tenures to maximize benefits, as ULIPs have a lock-in period of five years.
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Grace Period: 15 days grace for monthly premiums and 30 days for other payment modes.
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Policy Revival: If discontinued after 5 years, the policy can be revived within a 2-year window.
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Child Policies: No withdrawals are permitted until the child reaches 18 years of age.
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Holistic Financial Planning: ULIPs offer multiple benefits; assess them within an overall portfolio to meet financial and security goals.
Wrapping Up
The sum assured in a ULIP is a critical component, providing a safety net for policyholders. It guarantees a minimum payout to beneficiaries, ensuring financial security in case of unforeseen events, and financial goals influence which SIP is best for each investor. Understanding the sum assured helps in making informed decisions when selecting a ULIP. Overall, it balances investment growth with protection, making ULIPs a versatile choice for long-term financial planning.
FAQs
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What does sum assured mean?
Sum assured is the predetermined amount that an insurance company promises to pay to the policyholder's beneficiaries in the event of their death during the policy term. It is a crucial component of life insurance, ensuring financial protection for dependents. -
What is the difference between fund value and sum assured?
Fund value refers to the current market value of the investments in a unit-linked insurance plan (ULIP). In contrast, the sum assured is the guaranteed amount payable to the policyholder's beneficiaries upon their death, regardless of the fund value. -
What is the difference between the sum assured and the maturity amount?
Sum assured is the fixed amount guaranteed to be paid out upon the policyholder's death. Maturity amount, however, is the total value paid to the policyholder upon the policy's completion, which includes the sum assured plus any bonuses or investment returns. -
What is the sum assured policy?
A sum-assured policy is a life insurance policy that guarantees a specific amount to be paid to the beneficiaries upon the policyholder's death. It provides financial security to the policyholder's family and can vary in structure, including whole life, term, or endowment plans .
˜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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