ULIP Plans – Up Growing Investment Option

Those who are looking for an ideal investment vehicle for 2026 can surely opt for the Unit Linked Insurance Plan (ULIP), without much speculation. People who were averse to ULIP even sometimes back are opting for it once again naturally because of the related benefits, which make it a worthwhile investment option in the current scenario. You can be assured of a minimum sum in the range of 10 times the total premiums that you pay and this is quite substantial. 

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ULIP Plans

  • Plan starting from ₹1,000/month
  • Save upto ₹46,800 in Tax under section 80C^
  • Zero LTCG Tax
  • In built life cover
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Long Term Effectively

One of the main reasons why investors believe that ULIP plans are an ideal investment option in 2026 is because of its long-term effectiveness, which makes it a worthwhile choice in all respects. If you want to enjoy the associated benefits, it is necessary to stick around for the term- end since this is the time when its real glamour is revealed. Those who are deterred by this plan are put off by the short-term returns, which is not after all what ULIP is meant for.

Amendments Make Ulip A Worthwhile Option

Those who are basing their decision not to invest in Unit Linked Insurance Plan are considering the 2010 scenario when this was not something, which seemed glamorous and worthwhile by any standards. Today, however, the situation has changed much especially in view of recent IRDA amendments. This ensures higher protection for the consumers. In order to do away with the misleading view that ULIP is a short-term plan, IRDA has increased the lock-in period for this scheme, from the earlier three years to five years from now, attracting only those investors who are after long-term gains, while Investors often explore the best SIP in India for long-term growth.

Ideal for Regular Customers

If you are not aware of various investment options, and how to go about them, Unit Linked Insurance Plan may just be the ideal vehicle for your needs. When you deal with financial advisors, they always try to suggest a combination of mutual funds and life insurance. Through ULIP, you ensure not only long-term maturity benefits but also a substantial capital gain.

Fund Name NAV sort icon AUM sort icon 5 Yr Returns sort icon 10 Yr Returns sort icon
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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Investment Flexibility

One of the main benefits of ULIP is that it provides investors with flexible options to choose from based on their preference and capabilities. You can go for low to high-risk choices under the same policies. This is something unique and helps to find so many takers for this plan in 2026. Those who want can easily switch from one fund option to another without any additional charges for the same. Again, it is possible to go for one time increase in your current investment portfolio with matching returns in the future scenarios.

Those who want to play safe and see their money grow surely and steadily over a period have no other option, which is better than ULIP, in view of long-term investment. It gives protection to your money with good returns in the coming times. With so many benefits, riding on its shoulder Unit Linked Insurance Plan is surely a worthwhile choice to consider when you are trying to find a safe and solid option this 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.

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