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ULIP for Senior Citizens
Financial planning does not stop after retirement. In fact, it becomes more critical. Many senior citizens want their savings to grow along with safety. ULIP for senior citizens offer an opportunity to invest in the market while staying insured. Still, understanding their features is very important before investing.
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Ulip Plans
- ULIP for Senior Citizens
List of ULIP Funds ~
Fund Name
AUM
NAV
Returns (in %)
3 Year
5 Year
10 Year
Midcap Fund
SBI Life
AUM:67,697 Cr
67,697 Cr
NAV
49.24
0.07%
Returns
14.38%
Opportunities Fund
HDFC Life
AUM:32,429 Cr
32,429 Cr
NAV
76.8
0.14%
Returns
10.61%
High Growth Fund
Axis Max Life
AUM:16,228 Cr
16,228 Cr
NAV
120.09
0.40%
Returns
20.3%
Highest Returns
Opportunities Fund
ICICI Life
AUM:3,711 Cr
3,711 Cr
NAV
58.33
0.13%
Returns
12.09%
Highest Returns
Multi Cap Fund
Tata AIA Life
AUM:12,199 Cr
12,199 Cr
NAV
65.74
0.37%
Returns
12.03%
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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 a Unit Linked Insurance Plan (ULIP)?
A Unit Linked Insurance Plan (ULIP) is a financial product that gives you both insurance and investment in one plan. When you invest in a ULIP, a part of your money is used to provide life insurance cover. The remaining amount is invested in market-linked funds like equity, debt, or balanced funds.
Important Features of ULIP Plans for Senior Citizens
The following are the key features offered by this best investment plan available for senior citizens:
| Feature | Details |
| Entry Age Limit | Most ULIPs allow entry up to 60–65 years. Options are limited compared to young investors. |
| Life Cover | Provides insurance protection, but coverage is usually lower at higher ages and comes at a higher cost. |
| Investment Option | Money is invested in equity funds, debt funds, or balanced funds based on your risk level and age. |
| Focus on Debt Funds | Senior citizens are generally advised to invest more in debt funds for stability and lower risk. |
| Market-Linked Returns | Returns are not fixed. They depend on market performance, so there is some risk involved. |
| Lock-in Period | Mandatory 5-year lock-in, promoting long-term financial growth through compounding. |
| Premium Payment Term (PPT) | Shorter premium payment options are available, which suit retirees with limited income years. |
| Tax Benefits | Premiums may qualify for tax deduction under Section 80C. Maturity may be tax-free under Section 10(10D), subject to conditions. |
Importance of ULIP for Senior Citizens
The following are the key features offered by the ULIP plans that make them one of the best investment options for senior citizens:
- ULIP offers life insurance cover while also allowing your money to grow through market-linked investments.
- ULIPs can offer higher returns than traditional savings options over the long term.
- You can choose between different market-linked investment funds.
- You can shift your money between funds based on market conditions.
- ULIP helps in planning for legacy or supporting dependents.
Latest ULIP NAVs
| Fund Name | NAV  |
AUM |
5 Yr Returns |
10 Yr Returns |
|---|---|---|---|---|
| SBI Life Balanced Fund | ₹70.62 | ₹19726 Cr | 4.94% | 8.44% |
| SBI Life Bond Fund | ₹51.12 | ₹15328 Cr | 5.09% | 5.97% |
| SBI Life Equity Fund | ₹185.95 | ₹81746 Cr | 7.6% | 10.53% |
| SBI Life Equity Optimiser Fund | ₹52.62 | ₹2606 Cr | 6.08% | 10.11% |
| SBI Life Growth Fund | ₹90.41 | ₹2837 Cr | 5.31% | 9.72% |
| SBI Life Money Market Fund | ₹37.88 | ₹482 Cr | 6.07% | 5.87% |
| SBI Life Top 300 Fund | ₹53.51 | ₹1972 Cr | 5.13% | 10.58% |
| SBI Life Pure Fund | ₹26.9 | ₹1251 Cr | 4.89% | 9.28% |
| SBI Life Bond Optimiser Fund | ₹22.36 | ₹3214 Cr | 5.89% | - |
| SBI Life Midcap Fund | ₹49.24 | ₹67697 Cr | 12% | 15.42% |
| SBI Life Corporate Bond Fund | ₹16.67 | ₹1009 Cr | 5.07% | - |
| SBI Life Balanced Pension | ₹70.98 | ₹867 Cr | 5.35% | 9.29% |
| SBI Life Equity Optimiser Pension | ₹56.65 | ₹1105 Cr | 6.35% | 10.94% |
| SBI Life Equity Elite II | ₹49.34 | ₹11844 Cr | 5.4% | 9.73% |
| SBI Life Index | ₹43.57 | ₹87 Cr | 4.62% | 10.05% |
| SBI Life Index Pension | ₹45.53 | ₹24 Cr | 4.69% | 10.11% |
| SBI Life Top 300 Pension | ₹52.9 | ₹772 Cr | 5.39% | 10.86% |
| SBI Life Discontinued Policy Fund | ₹25.99 | ₹10931 Cr | 5.6% | 5.77% |
| SBI Life Bond Pension | ₹45.57 | ₹552 Cr | 5.13% | 6.25% |
| SBI Life Equity Elite | ₹82.76 | ₹12 Cr | 7.1% | 12.45% |
| SBI Life Equity Pension | ₹71.52 | ₹13758 Cr | 5.98% | 10.96% |
| SBI Life Growth Pension | ₹71.74 | ₹692 Cr | 6.05% | 10.34% |
| SBI Life Money Market Pension | ₹35.01 | ₹160 Cr | 6.02% | 5.85% |
| SBI Life P-E Managed | ₹37.33 | ₹195 Cr | 6.1% | 8.68% |
| SBI Life Guaranteed Pension GPF070211 | ₹26.9 | ₹1 Cr | 4.93% | 5.7% |
| SBI Life Bond Pension II | ₹23.63 | ₹28119 Cr | 4.83% | 5.56% |
| SBI Life Equity Pension II | ₹38.98 | ₹11378 Cr | 4.63% | 10.24% |
| SBI Life Money Market Pension II | ₹21.36 | ₹1488 Cr | 5.78% | 5.6% |
| SBI Life Discontinue Pension Fund | ₹21.95 | ₹6203 Cr | 5.63% | - |
| SBI Life Group Growth Plus Fund | ₹55.97 | ₹3 Cr | 5.62% | - |
| SBI Life Group Debt Plus Fund | ₹39.3 | ₹115 Cr | 4.82% | - |
| SBI Life Group Balance Plus Fund | ₹47.61 | ₹11 Cr | 5.45% | - |
| SBI Life Group Balance Plus Fund II | ₹27.22 | ₹1273 Cr | 6.31% | - |
| SBI Life Group Debt Plus Fund II | ₹26.38 | ₹363 Cr | 5.56% | - |
| SBI Life Group Growth Plus Fund II | ₹26.38 | ₹291 Cr | 5.98% | - |
| SBI Life Group Short Term Plus Fund II | ₹21.79 | ₹24 Cr | 5.74% | - |
| SBI Life Group Money Market Plus Fund | ₹14.21 | ₹2 Cr | 3.35% | - |
| SBI Life Group Balanced Pension Fund | ₹10.08 | ₹194 Cr | - | - |
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- ULIP investments may offer tax deductions and tax-free maturity benefits as per rules.
- Life cover ensures financial support for your family.
When ULIP Can Be a Good Option After 60
ULIP for senior citizens may work if:
- You already have stable retirement income (pension, rent, or savings interest)
- You are looking for long-term wealth growth (10+ years horizon)
- You are comfortable with market ups and downs
- You want to leave money for your family (legacy planning)
- You do not need regular withdrawals from this investment
In such cases, ULIP plans for senior citizens can act as a growth-oriented part of your portfolio.
When ULIP is NOT a Good Option After 60
ULIP may not be suitable to buy after you turn 60 if:
- You need regular monthly income after retirement
- You want safe and fixed returns like FD or Senior Citizen Savings Scheme (SCSS)
- You may need quick access to your money
- You are not comfortable with market risk
- You want a simple, easy-to-understand investment
For many senior citizens, these limitations make ULIPs less attractive compared to other retirement products.
Best ULIP Funds for Senior Citizens
Instead of choosing random fund options, the best ULIP Plan depends on risk profile, age, and investment period:
| ULIP Type | Best For |
| Equity Fund ULIPs | Higher return seekers (moderate risk) |
| Balanced Fund ULIPs | Medium risk investors |
| Debt Fund ULIPs | Conservative senior citizens |
How to Choose the Best ULIP for Senior Citizens
Choosing the right ULIP is very important.
- You should check the entry age limit before investing. It is also important to understand all the charges.
- You should select funds based on your risk level and ensure that you can stay invested for the long term.
- Choose debt or balanced funds for stability
- Avoid high exposure to equity if risk tolerance is low
- Review and adjust funds regularly
- Comparing different ULIP plans can help you make a better decision.
Tax Benefits of ULIP (2026)
ULIP for senior citizens offers tax benefits, but the rules have changed in recent years.
- Premiums qualify for deduction under Section 80C (up to ₹1.5 lakh)
- Maturity amount is tax-free under Section 10(10D) if conditions are met under the Income Tax Act, 1961
- If annual premium exceeds ₹2.5 lakh, returns may be taxable
- Death benefit remains fully tax-free
Risks and Limitations of ULIPs
ULIPs also have some risks and limitations.
- Returns are not guaranteed because they depend on market performance. There is a lock-in period of 5 years, which reduces liquidity.
- ULIPs also have multiple charges that can reduce your overall returns.
- In addition, the product can be complex for beginners to understand.
ULIP vs Other Investment Options for Senior Citizens
| Investment Option | Risk Level | Returns | Liquidity | Lock-in | Taxation (2026) | Best For |
| Unit Linked Insurance Plans (ULIP) | Medium to High | Market-linked (not guaranteed) | Low | 5 years | Tax-free only if premium ≤ ₹2.5L; otherwise taxable | Seniors with a long-term horizon and a moderate risk appetite |
| Fixed Deposit (FD) | Low | Fixed and stable | High | Flexible (7 days–10 years) | Interest taxable as per slab | Safe and regular income seekers |
| Senior Citizens Savings Scheme (SCSS) | Very Low | Fixed (~8% range, govt-backed) | Medium | 5 years | Interest taxable; Section 80C benefit | Retirees looking for secure income |
| Mutual Funds (Debt/Hybrid) | Low to Medium | Market-linked | High | No lock-in (except ELSS) | Capital gains tax applicable | Better alternative to ULIP for flexibility |
| Post Office Monthly Income Scheme (POMIS) | Very Low | Fixed (~7–8% range) | Medium | 5 years | Interest taxable | Regular monthly income |
| Annuity Plans | Very Low | Fixed payout | Very Low | Long-term/irreversible | Income taxable | Lifetime income security |
Better Way to Use ULIP for Senior Citizens
You can improve your investment portfolio by following simple steps.
- Keep ULIP as a small portion of your portfolio
- Prefer debt or balanced funds instead of high equity exposure
- Use it mainly for long-term wealth transfer
- Avoid withdrawing money too early.
- Combine it with safer options like FD, SCSS, or annuity plans
- Review your investment regularly and use the fund switching option wisely.
Conclusion
ULIP for senior citizens can be a useful financial product when chosen carefully. It provides both investment growth and life insurance benefits. However, it also comes with risks, charges, and a lock-in period. With the latest tax rules in 2026, it is important to evaluate ULIPs properly before investing. Senior citizens should focus on safety and financial stability first. ULIP should be used as a part of a balanced investment strategy, not as the only option.
FAQs
-
Can senior citizens invest in ULIP?
Yes, they can invest if they meet the age criteria of the plan. -
Is ULIP safe for senior citizens?
ULIP is not completely safe because it depends on market performance. -
Can I withdraw money from ULIP anytime?
You can withdraw money only after completing 5 years.
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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˜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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