Unit Linked Pension Plans

A well-planned retirement can ensure that an individual accomplishes all their life goals. Among the range of options, Unit Linked Pension Plans (ULPPs) are most popular with people who make deliberate decisions about investing their hard-earned money. ULPPs enable them to reap substantial benefits after retirement while also saving taxes.

Read more
Best ULIP Plans
  • Guaranteed Tax Savings

    Guaranteed Tax Savings^

    Under sec 80C & 10(10D)
  • savings

    ₹1 Crore

    Invest ₹10k Per Month*
  • Zero LTCG Tax

    Zero LTCG Tax^

    Unlike 10% in Mutual Funds
We are rated~
58.9 Million
Registered Consumer
Insurance Partners
26.4 Million
Policies Sold
In-built life cover

Top performing plans with High Returns*

Invest ₹10K/month & Get ₹1 Crore returns*

We don’t spam
Please wait. We Are Processing..
Your personal information is secure with us
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
58.9 Million
Registered Consumer
Insurance Partners
26.4 Million
Policies Sold

What are Unit Linked Pension Plans (ULPPs)?

Unit Linked Pension Plans (ULPPs) are long-term, market-linked products that cater to both the pension and investment needs of an investor. This plan offers a host of opportunities for them to grow their financial corpus safely and plan securely for various goals like child education, health benefits, retirement, and wealth creation.

These post-retirement ULIP pension plans leverage the risk appetite of an individual to give them the liberty to invest 100% in equities, debt funds, or a combination of the two based on their risk profile.

ULPPs allows the policyholder to allocate, control, and choose how to invest their money. Among these, one of the most attractive features is the flexibility offered to investors for switching and tweaking their debt and equity fund profiles. The other is the unit linked pension plan taxability feature, where the subscriber is offered tax exemption under Section 80C of the IT Act, 1961. 

Having said that, a ULIP for senior citizens is certainly the best way to gain exciting returns toward fulfilling their future goals.

Features of Unit Linked Pension Plans (ULPPs)

Below is the listed array of features significant in well-informed decision-making for subscribing to ULPPs, one of the best retirement annuity-cum-investment plans:

  • Being a unit-linked plan, the Unit Linked Pension Plans come with a lock-in period of 5 years.

  • Individuals between the ages of 35 and 70 are eligible to invest in the plan.

  • The policy term tenure ranges between 5 and 30 years in multiples of 5 (5, 10, 15 years, and so on).

  • The premium allocation is low if bought in the initial years of eligibility for the plan but increases gradually with the increase in the subscriber's age.

  • The investors can withdraw 1/3rd of the corpus sum tax-free when they retire.

  • They must subscribe to an annuity plan with the rest of the accumulated money, which will be taxable and a regular source of income.

  • According to market trends, guaranteed maturity benefits range from 101% to 195% in the Unit Linked Pension Plans.

  • In the event of the premature death of the investor, a guaranteed death benefit will apply to the nominee.

  • It discourages premature exit to reap the full benefits of this long-term investment product.

  • ULIP for senior citizens is specifically designed to effectively plan all their post-retirement events and goals.

How do Unit Linked Pension Plans (ULPPs) Work?

When buying the ULIP pension plan, the investor chooses the premium payment term of the policy based on their risk appetite. The reason is equities, being a more volatile asset as compared to debt investments, present high money-generation opportunities in the long term.

In these plans, a portion of the premium is invested in stocks, bonds, and other financial instruments to make your money grow parallel to market growth. The rest of the portion is invested in pension premiums for your future stability post-retirement. An investor can also pay extra premiums (top-up amounts) on top of the fixed premium amount.

After deducting the policy charges and the successful payment of the premiums, the policy matures on the vesting date. On this date, the investor gets the total fund value from both the premiums and top-up premiums paid

A few of the major ULPP policies available in the market that an investor can consider are: HDFC Unit Linked Pension Plans, ICICI Unit Linked Pension Plans, Birla Sun life ULPPs, and Bajaj Allianz Unit Linked Pension Plans.

 For example, with HDFC Unit Linked Pension Plans, you can accumulate a huge corpus efficiently with 15 or more years of subscription.

Charges under Unit Linked Pension Plans (ULPPs)

There is also a deduction of charges in the ULPP plans, the major among them being:

  • Fund management expenses

  • Discontinuation charges

  • Mortality charges

  • Surrender charges (in case of partial and premature withdrawal of units)

  • Premium allocation charges

  • Policy administrative charges

  • Fund switching charges

  • The company also charges a fee in case the investor seeks guaranteed returns.

Benefits of Unit Linked Pension Plans

The range of benefits offered by a ULPP plan are listed below but are not limited to them, are as follows: 

  • Tax-exemption: The unit linked pension plan taxability is the feature that excites the investors the most. Under Section 80C of the IT Act, 1961, premiums up to the limit of Rs. 1.5 lakh annually are eligible for tax exemption.

  • Flexibility to change the premium amount: The premium amount can be deposited as a lump sum, at regular intervals, or in top-up amounts additional to the existing premium.

  • Flexibility to extend the vesting age: The maturity age (the age when you start receiving your pension) can be decided by the investor anywhere between 50 and 75 years.

  • Consistency of post-retirement income: ULPPs generate a robust retirement financial corpus even if your income is inconsistent. 

On a Final Note!

Although financial stability and security are urgent needs, a future plan based on a comprehensive understanding of investment policies cannot be overstated. Making sure to inquire about the past performance of the funds, market trends, future prospects, and returns is crucial prior to taking out ULPP plans.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.
*Tax benefit is subject to changes in tax laws. Standard T&C Apply
^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
~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.

Grow your wealth & meet your Financial goals

Systematically Invest in high growth plans with returns upto 18%*
View plans
Standard T & C Apply*
Insurers Offering ULIPs

Tata AIA

Aditya Birla Sun Life

Bajaj Allianz

Max Life


ICICI Prudential

Bharti AXA Life

Edelweiss Life

Kotak Life

Future Generali

PNB MetLife

SBI Life


Bandhan Life

Canara HSBC

IDBI Federal


Pramerica Life

Reliance Life

Sahara Life

Shriram Life

Star Union

View more insurers
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Invest More Get More!
You Get
₹1 Crores*
You Invest
You Get
₹80 Lakhs*
You Invest
You Get
₹50 Lakhs*
You Invest
capital guarantee
Investment Calculator
  • One time
  • Monthly
/ Year
Sensex has given 10% return from 2010 - 2020
You invest
You get
View plans

Ulip plans articles

Recent Articles
Popular Articles
Mortality Charges in ULIPs

16 Jul 2024

Mortality charges in a ULIP (Unit Linked Insurance Plan)
Read more
Benefits of Buying Online ULIP Over Offline ULIP

21 Jun 2024

Unit Linked Insurance Plans (ULIPs) have emerged as a popular
Read more
Why Should ULIPs Be Part of Your Financial Planning in 2024?

19 Jun 2024

Financial planning requires agility and growth potential. ULIPs
Read more
ULIP for Wealth Creation

19 Jun 2024

Unit-linked insurance Plans (ULIPs) are financial products that
Read more
Dynamic Asset Allocation

21 May 2024

Dynamic Asset Allocation involves actively adjusting investment
Read more
ULIP Calculator
  • 08 Oct 2018
  • 121880
A ULIP Calculator is a financial tool designed to help you compare ULIP plans and estimate the maturity amount
Read more
SBI Life Smart Privilege Plan: Benefits & Features
  • 11 Jan 2017
  • 88540
SBI Life Smart Privilege is a unit-linked, non-participating life insurance plan offered by SBI Life Insurance
Read more
7 Things to Know About the Tax Benefits of ULIPs
  • 06 Oct 2021
  • 15086
Nowadays, Unit Linked Insurance Plans, i.e., ULIPs, have evolved as the popular income tax saving investment
Read more
ULIP Returns in 5 Years
  • 06 Dec 2023
  • 1904
ULIP means Unit Linked Insurance Plan. It is a unique financial instrument that combines insurance coverage with
Read more
Taxability of ULIP on Surrender
  • 28 Dec 2023
  • 2110
ULIPs, or Unit Linked Insurance Plans, combine insurance and investment. The taxability of ULIP on surrender
Read more


Become a Crorepati

Invest ₹10K/Month & Get ₹1 Crore returns*

Mobile +91
*T&C Applied.
Download the Policybazaar app
to manage all your insurance needs.