Single Premium vs. Regular Premium ULIP Plans

What Are Single Premium ULIP Plans?

Single Premium ULIP Plans are a type of Unit Linked Insurance Plan where you pay the entire premium upfront as a lump sum at the start of the policy. This one-time payment covers both your life insurance and investment components for the entire policy term, eliminating the need for future premium payments.

In these plans, a portion of your lump sum premium goes towards life insurance coverage, while the rest is invested in market-linked funds such as equity, debt, or balanced funds, based on your risk appetite. The returns depend on the performance of these funds, offering the potential for wealth creation alongside insurance protection.

Single Premium ULIPs are ideal for investors with surplus funds who prefer a hassle-free, one-time payment without worrying about missing premiums or policy lapses. They also often come with discounts on ULIP charges due to the lump sum payment.

Investment Return Calculator (Power of Compounding)

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Top Funds with High Returns (Past 7 Years)

17.8%

High Growth Fund

20.11%

India Consumption Fund

14.69%

Accelerator Mid-Cap Fund II

14.51%

Opportunities Fund

15.5%

Pension India Consumption Fund

15.51%

Multiplier

15.13%

Virtue II

10.71%

Equity II Fund

13.87%

Accelerator Fund

11.35%

Pension Dynamic Equity Fund

14.29%

Frontline Equity Fund

11.89%

Equity Fund

11.42%

Equity Top 250 Fund

14.58%

Growth Opportunities Plus Fund

13.57%

Future Apex Fund

13.87%

US Equity Fund

View Plans

What are Regular Premium ULIP Plans? 

Regular Premium ULIP (Unit Linked Insurance Plan) plans are financial products that combine life insurance with investment. In these plans, you pay a pre-fixed premium amount at regular intervals, such as monthly, quarterly, half-yearly, or annually, throughout the policy term. Each premium payment is split: a portion goes towards providing life insurance coverage, while the rest is invested in market-linked funds like equity, debt, or a mix, based on your risk appetite and financial goals.

Regular premium ULIPs are designed to promote disciplined, systematic investing, making them more affordable since the financial commitment is spread over time rather than requiring a large lump sum upfront. ULIP Tax benefits can be claimed every year under Section 80C for each premium paid. Additionally, regular contributions help average out market volatility, potentially reducing investment risk over the long term.

List of ULIP Funds ^~

Returns 3 Years 5 Years 10 Years

Fund Name

AUM

NAV

Returns (in %)

3 Year

5 Year

10 Year

High Growth Fund

Max Life

AUM:10,580 Cr

10,580 Cr

NAV

115.15

0.73%

Returns

25.62%

Returns

28.6%

Highest Returns

Returns

17.8%

Get Details

India Consumption Fund

Tata AIA

AUM:2,228 Cr

2,228 Cr

NAV

62.62

0.36%

Returns

23.04%

Returns

27.51%

Highest Returns

Returns

20.11%

Get Details

Accelerator Mid-Cap Fund II

Bajaj Allianz

AUM:5,482 Cr

5,482 Cr

NAV

80.76

0.55%

Returns

16.96%

Returns

20.93%

Highest Returns

Returns

14.69%

Get Details

Opportunities Fund

HDFC Standard

AUM:35,798 Cr

35,798 Cr

NAV

76.26

0.53%

Returns

17.53%

Returns

22.06%

Highest Returns

Returns

14.51%

Get Details

Pension India Consumption Fund

ICICI Prudential

AUM:6 Cr

6 Cr

NAV

10.35

0.07%

Returns

-

Returns

20.5%

Highest Returns

Returns

15.5%

Get Details

Multiplier

Birla Sun Life

AUM:4,527 Cr

4,527 Cr

NAV

94.61

0.84%

Returns

17.82%

Returns

23%

Highest Returns

Returns

15.51%

Get Details

Virtue II

PNB Metlife

AUM:3,256 Cr

3,256 Cr

NAV

71.03

0.43%

Returns

16.76%

Returns

21.1%

Highest Returns

Returns

15.13%

Get Details

Equity II Fund

Canara HSBC Oriental Bank

AUM:3,416 Cr

3,416 Cr

NAV

41.62

0.26%

Returns

12.59%

Returns

17.41%

Highest Returns

Returns

10.71%

Get Details

Balanced Fund

LIC

AUM:2,555 Cr

2,555 Cr

NAV

18.66

0.09%

Returns

10.96%

Returns

11.27%

Highest Returns

Returns

-

Get Details

Accelerator Fund

AEGON Life

AUM:232 Cr

232 Cr

NAV

49.76

0.33%

Returns

16.69%

Returns

20.62%

Highest Returns

Returns

13.87%

Get Details

Pension Dynamic Equity Fund

Pramerica Life Insurance Limited

AUM:5 Cr

5 Cr

NAV

73.01

0.36%

Returns

12.9%

Returns

17.26%

Highest Returns

Returns

11.35%

Get Details

Frontline Equity Fund

Kotak Mahindra OM

AUM:4,333 Cr

4,333 Cr

NAV

69.17

0.41%

Returns

17.29%

Returns

21.44%

Highest Returns

Returns

14.29%

Get Details

Equity Fund

SBI

AUM:77,577 Cr

77,577 Cr

NAV

201.93

1.31%

Returns

13.64%

Returns

17.67%

Highest Returns

Returns

11.89%

Get Details

Equity Top 250 Fund

Edelwiess Tokio

AUM:522 Cr

522 Cr

NAV

57.5

0.30%

Returns

13.8%

Returns

17.43%

Highest Returns

Returns

11.42%

Get Details

Growth Opportunities Plus Fund

Bharti AXA

AUM:1,006 Cr

1,006 Cr

NAV

72.95

0.44%

Returns

14.99%

Returns

20.36%

Highest Returns

Returns

14.58%

Get Details

Future Apex Fund

Future Generali India

AUM:104 Cr

104 Cr

NAV

56.2

0.38%

Returns

15.52%

Returns

21.43%

Highest Returns

Returns

13.57%

Get Details

US Equity Fund

Star Union Dai-ichi

AUM:0 Cr

0 Cr

NAV

0.00%

Returns

-

Returns

14.69%

Highest Returns

Returns

13.87%

Get Details

Global Artificial Intelligence Strategy

India First

AUM:0 Cr

0 Cr

NAV

11.2

-11.20%

Returns

-

Returns

21.05%

Highest Returns

Returns

-

Get Details

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Disclaimer :
˜Top plans are based on annualized premium, for bookings made through https://www.policybazaar.com in FY 25. 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. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in

Key Differences Between Single Premium and Regular Premium ULIP Plans

Pros and Cons of Single Premium and Regular Premium ULIP Plans

1. Single Premium ULIP Plans: 

   Pros:

   • Hassle-free, one-time payment—no risk of missing future premiums.

   • No fear of policy lapse due to non-payment.

   • Suitable for those with surplus funds or irregular income.

   • Potential discounts for lump sum payment.

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   Cons:

   • Large upfront outlay may not suit everyone.

   • ULIP Tax benefit is limited to the year of payment.

   • Less flexibility to add riders or increase cover later.

   • Exposed to market volatility at the time of investment.

2. Regular Premium ULIP Plans

   Pros:

   • Spreads out the financial commitment, making it more affordable.

   • Enables annual tax benefits under Section 80C for each year premiums are paid.

   • Rupee cost averaging helps mitigate market volatility risk.

   • Greater flexibility to add riders and enhance cover.

   • In case of the policyholder’s demise before maturity, future premiums are not required, but benefits continue.

   Cons:

   • Requires discipline and regular income to avoid policy lapse.

   • Missing payments can lead to discontinuation and lower returns.

Which ULIP Premium Option Should You Choose?

The choice between single and regular premium ULIP plans depends on your financial situation, investment style, and insurance needs:

1. Opt for Single Premium ULIP if:

   • You have a lump sum available for investment.

   • You prefer a hassle-free, one-time transaction.

   • You want to avoid the risk of missing payments or lapsing the policy.

2. Opt for Regular Premium ULIP if:

   • You prefer spreading out your payments.

   • You want to maximize annual tax benefits.

   • You value flexibility and the ability to add riders over time.

   • You wish to benefit from rupee cost averaging in volatile markets.

Additional Considerations

1. ULIP Charges

   Both single and regular premium ULIPs have various charges such as fund management, mortality, and premium allocation charges. Understanding these [ULIP charges] is crucial to evaluating the overall cost and potential returns of your ULIP investment.

2. ULIP Calculator

   Use to compare plans, estimate returns, and understand the impact of charges and premium payment modes on your investment outcome.

Conclusion

Both single and regular premium ULIP plans offer the dual advantage of investment and insurance. Your decision should be based on your cash flow, risk appetite, tax planning needs, and convenience preferences. Assess your financial goals carefully to choose the ULIP premium payment mode that aligns best with your long-term objectives.