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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.
ULIP Plans
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Top performing plans˜ with High Returns**
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- Life Insurance
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- 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:59,296 Cr
59,296 Cr
NAV
51.76
-0.26%
Returns
19.2%
Highest Returns
Opportunities Fund
HDFC Life
AUM:35,005 Cr
35,005 Cr
NAV
81.39
-0.41%
Returns
15.69%
Highest Returns
High Growth Pension Fund
Axis Max Life
AUM:32 Cr
32 Cr
NAV
10.58
-0.06%
Returns
22.85%
Highest Returns
US Technology Advantage Fund
ICICI Prudential Life
AUM:0 Cr
0 Cr
NAV
0.00%
Returns
-
Multi Cap Fund
Tata AIA Life
AUM:10,835 Cr
10,835 Cr
NAV
67.87
-0.33%
Returns
16.19%
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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 | ₹73 | ₹19882 Cr | 7.33% | 9.19% | |
| SBI Life Bond Fund | ₹51.67 | ₹16422 Cr | 5.71% | 6.57% | |
| SBI Life Equity Fund | ₹195.16 | ₹76974 Cr | 8.83% | 10.88% | |
| SBI Life Equity Optimiser Fund | ₹54.21 | ₹2503 Cr | 9.55% | 10.76% | |
| SBI Life Growth Fund | ₹94.27 | ₹2777 Cr | 8.33% | 10.5% | |
| SBI Life Money Market Fund | ₹37.34 | ₹501 Cr | 5.93% | 5.93% | |
| SBI Life Top 300 Fund | ₹55.88 | ₹1903 Cr | 8.68% | 11.34% | |
| SBI Life Pure Fund | ₹27.51 | ₹1197 Cr | 8.35% | 10.36% | |
| SBI Life Bond Optimiser Fund | ₹22.79 | ₹3207 Cr | 7.15% | - | |
| SBI Life Bluechip Fund | ₹9.85 | ₹3289 Cr | - | - | |
| SBI Life Balanced Pension | ₹73.3 | ₹808 Cr | 7.97% | 10.02% | |
| SBI Life Bond Pension | ₹45.92 | ₹546 Cr | 5.56% | 6.81% | |
| SBI Life Equity Pension | ₹74.73 | ₹12146 Cr | 10.01% | 11.89% | |
| SBI Life Growth Pension | ₹74.1 | ₹634 Cr | 9% | 11.01% | |
| SBI Life Money Market Pension | ₹34.52 | ₹151 Cr | 5.89% | 5.92% | |
| SBI Life Equity Optimiser Pension | ₹57.55 | ₹980 Cr | 9.49% | 11.43% | |
| SBI Life Top 300 Pension | ₹55.03 | ₹720 Cr | 8.94% | 11.55% | |
| SBI Life Midcap Fund | ₹51.76 | ₹59296 Cr | 16.69% | 17.17% | |
| SBI Life Corporate Bond Fund | ₹16.72 | ₹1031 Cr | 5.48% | - | |
| SBI Life Equity Elite II | ₹51.21 | ₹11536 Cr | 8.59% | 10.44% | |
| SBI Life Index | ₹46.25 | ₹90 Cr | 8.85% | 10.76% | |
| SBI Life Index Pension | ₹48.3 | ₹25 Cr | 8.98% | 10.81% | |
| SBI Life Discontinued Policy Fund | ₹25.86 | ₹10597 Cr | 5.72% | 5.94% | |
| SBI Life Equity Elite | ₹86.4 | ₹12 Cr | 11.31% | 13.17% | |
| SBI Life P-E Managed | ₹38.73 | ₹199 Cr | 8.43% | 9.26% | |
| SBI Life Guaranteed Pension GPF070211 | ₹27.04 | ₹2 Cr | 5.25% | 6.28% | |
| SBI Life Bond Pension II | ₹23.91 | ₹28624 Cr | 5.43% | 6.16% | |
| SBI Life Equity Pension II | ₹41.11 | ₹11046 Cr | 8.81% | 11.2% | |
| SBI Life Money Market Pension II | ₹21.07 | ₹1524 Cr | 5.65% | 5.66% | |
| SBI Life Discontinue Pension Fund | ₹21.83 | ₹6502 Cr | 5.74% | - | |
| SBI Life Group Growth Plus Fund | ₹57.6 | ₹3 Cr | 7.8% | - | |
| SBI Life Group Debt Plus Fund | ₹41.1 | ₹112 Cr | 6.4% | - | |
| SBI Life Group Balance Plus Fund | ₹48.99 | ₹10 Cr | 7.11% | - | |
| SBI Life Group Balance Plus Fund II | ₹26.92 | ₹1066 Cr | 7.13% | - | |
| SBI Life Group Debt Plus Fund II | ₹26.72 | ₹323 Cr | 6.49% | - | |
| SBI Life Group Growth Plus Fund II | ₹27.08 | ₹288 Cr | 8.14% | - | |
| SBI Life Group Short Term Plus Fund II | ₹22.05 | ₹19 Cr | 6.2% | - | |
| SBI Life Group Money Market Plus Fund | ₹14.06 | ₹2 Cr | 3.26% | - | |
| SBI Life Group Balanced Pension Fund | ₹10.21 | ₹125 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.