Unit Link Insurance Plan
A Unit Linked Insurance Plan (ULIP) offers the perfect balance of protection and growth. Along with safeguarding your family’s future through life cover, it also allows you to invest in equity, debt, or balanced funds—helping your wealth grow steadily. Whether it’s planning for your child’s education, buying a home, or building a retirement corpus, ULIPs give you flexibility, security, and long-term financial growth in one smart plan.
How does a ULIP work?
A Unit Linked Insurance Plan (ULIP) is a smart financial product that combines life insurance protection with market-linked investment opportunities. It ensures your family’s security while helping you build long-term wealth.
1. Premium Allocation
When you pay your premium, it is split into two parts:
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One portion provides life insurance cover (sum assured).
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The remaining portion is invested in funds of your choice—equity, debt, or hybrid.
2. Investment Mechanism
Your invested amount is used to buy units in the chosen fund. Each unit has a Net Asset Value (NAV) that changes daily based on market performance.
Your fund value = number of units × current NAV.
🔹 The Dual Advantage
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Financial Protection: In case of an unfortunate event, your family receives a death benefit (higher of sum assured or fund value).
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Wealth Creation: Over time, your investment grows, helping you meet future financial goals.
🔹 Real-Life Example
Meet Priya, 30 years old, who invests in a ULIP for 20 years to fund her daughter’s higher education.
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Scenario 1: Unfortunate Event
If Priya passes away during the policy term, her daughter will receive the higher of the sum assured or fund value. Her daughter’s education remains financially secure. -
Scenario 2: On Maturity
If Priya completes the policy term, she receives the maturity benefit—the accumulated fund value, which can be used for her daughter’s education as planned.
Benefits of ULIP
The major advantages of choosing a ULIP plan include:
Market-linked wealth creation
Even a small investment through a SIP can grow significantly over time thanks to the power of compounding. The interest earned on your investment generates additional interest year after year, helping you accumulate a substantial corpus to achieve your financial goals.
Life insurance protection
Though it may sound like a term from a math textbook, rupee cost averaging plays a crucial role in investing. It helps minimise the impact of market volatility, ensuring that when the market fluctuates, your overall investment stays protected in the best possible way.
Tax Benefits
A SIP is undoubtedly one of the easiest ways to invest in mutual funds. Simply instruct your bank to set up auto-debits from your account, and you’re ready to start. You can also begin your investment journey effortlessly by contacting our experts.
Long-term Disciplined Investment
Saving isn’t always easy—unexpected expenses often come up, making us say, ‘Next time.’ By investing through a SIP, you commit to saving regularly, ensuring steady progress toward your financial goals. With a SIP calculator, you can also plan your investments based on your specific objectives, making your path to wealth more certain and structured.
Goal Based Investment
The beauty of a SIP lies in its flexibility—you don’t need to invest a large amount upfront. You can start small and gradually increase your investment at your convenience.
Partial Withdrawal Benefits
A SIP is undoubtedly one of the easiest ways to invest in mutual funds. Simply instruct your bank to set up auto-debits from your account, and you’re ready to start. You can also begin your investment journey effortlessly by contacting our experts.
Flexibility
Saving isn’t always easy—unexpected expenses often come up, making us say, ‘Next time.’ By investing through a SIP, you commit to saving regularly, ensuring steady progress toward your financial goals. With a SIP calculator, you can also plan your investments based on your specific objectives, making your path to wealth more certain and structured.
Additional Riders
The beauty of a SIP lies in its flexibility—you don’t need to invest a large amount upfront. You can start small and gradually increase your investment at your convenience.
Transparency
A SIP is undoubtedly one of the easiest ways to invest in mutual funds. Simply instruct your bank to set up auto-debits from your account, and you’re ready to start. You can also begin your investment journey effortlessly by contacting our experts.
Why Invest in ULIPs?
ULIPs give you the best of both worlds—protection and growth. They not only secure your family’s future but also help you build wealth for tomorrow. Here’s what makes ULIPs worth considering:
🔹 Dual Advantage: Protection + Growth
A ULIP combines life insurance coverage with market-linked investments. This ensures your loved ones are financially secure, while your money works for long-term wealth creation.
🔹 Tax Benefits
ULIPs come with attractive tax advantages. Premiums may qualify for deductions under Section 80C, and the maturity amount or death benefit can be exempt under Section 10(10D) (subject to conditions). Plus, fund switches within ULIPs are free from capital gains tax.
🔹 Flexibility When You Need It
You have the freedom to switch between equity, debt, or balanced funds based on your goals and market trends. After the 5-year lock-in period, partial withdrawals are also allowed for emergencies.
🔹 Long-Term Wealth Builder
By combining discipline with the power of compounding, ULIPs are designed to help you achieve big milestones like retirement planning, child’s education, or home purchase.
🔹 Transparency at Every Step
Stay in control of your investment. Track your fund performance, NAV, and charges regularly so you can make confident, informed financial decisions.