ULIP Returns in 25 Years

Top ULIP Funds^≈

Disclaimer: ≈ Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is done in alphabetical order (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

What is the 25 Years ULIP Policy?

The 25 Years ULIP Policy is a financial product offered by insurance companies to address the dual needs of insurance and investment over a quarter-century (25 years). Under this policy, policyholders make regular premium payments, with the premium being divided into two key components. 

The policyholder pays regular premiums, which are split into two parts: one part goes towards providing life insurance coverage, and the other part is invested in market-linked funds of the policyholder's choice.

This policy is particularly well-suited for individuals with extended financial horizons, as it provides a comprehensive solution for both protection and wealth creation over a 25-year period. With the flexibility to adjust fund allocations and the potential for long-term growth, the 25 Years ULIP Policy serves as a holistic approach to financial planning. 

How Does 25 Years ULIP Policy Work?

Vidur, a 35-year-old, invested in a 25-year ULIP with a Rs. 1 crore sum assured for retirement planning. He added a Waiver of Premium rider. At 48, a fatal accident occurred, and Vidur’s wife received the sum assured, settling debts. The unique feature of waiving future premiums kept the policy active. After 25 years, she received the maturity amount, ensuring financial independence. This showcases how a straightforward ULIP plan can offer both protection and long-term investment benefits.

Why Should You Choose a 25-Year ULIP Policy?

Here's why you should opt for 25 year ULIP Policy:

• Market-Linked Returns: Enjoy the potential for higher returns through dynamic debt and equity investments, outperforming traditional savings plans.

• Flexibility: Adapt to market conditions with the flexibility to choose and switch investment avenues. Partial withdrawals are available during financial emergencies.

• Tax Benefits: Classified under the EEE category, ULIPs offer tax exemptions and deductions under Sections 80C and 10(10D). Premiums qualify for deductions, and proceeds are tax-exempt, making it a tax-efficient investment.

• Life Coverage: Ensure financial security for your loved ones with life coverage, providing stability in challenging times.

• Long-Term Investment: Capitalize on the benefits of long-term investment by staying committed for 25 years. This duration allows strategic planning and potential compounding returns.

How are Return Rates Calculated on 25 Years ULIP Policy?

The performance of a 25-year ULIP policy is influenced by several factors, such as the policyholder's age, chosen sum assured, premium amount, and selected investment funds. The premium is allocated between life cover and investments, and returns are based on the market-linked funds' performance. This policy functions as a means for accumulating wealth over the long term while providing life coverage. Portfolio goals influence the best SIP plan choice. Prior to selecting a plan, it is essential to evaluate risk tolerance and financial goals. Regularly reviewing policy terms is advisable, and exploring the option of enhancing coverage with riders can provide additional protection.