ULIP (Unit-Linked Insurance Plan) is a special plan that provides the combined benefits of an insurance plan and investment. If you want to get insurance cover while investing in a range of assets like stocks, bonds, and mutual funds, these could be an ideal option for you. It also gives you the benefit of saving taxes with the possibility of decent returns. Check this list of the 8 best ULIP plans you can opt for in 2023. Read on!
|Name of the ULIP Plan||Yearly Minimum Premium||Entry Age||Features|
|Aegon Life iMaximise Plan||Rs. 24,000||7 years to 55 years||6 unit-linked funds|
Lets you withdraw 20% of the fund
Triple death benefit
|LIC Endowment Plus Plan||Rs. 20,000||90 days to 50 years||Get up to Rs. 1 crore by investing Rs. 10,000 per month|
Zero LTCG tax
Switch between 4 funds
|Bajaj Allianz Future Gain Plan||Rs. 25,000||1 year to 60 years||Unlimited free switches|
Maximum premium allocation
Option of 7 funds
|HDFC Life ProGrowth Plus||Rs. 24,000||14 years to 65 years||10 fund options to choose from|
Partial withdrawal facility
Additional benefit for accidental death
|Aditya Birla Sun Life Insurance Wealth Assure Plus||Rs. 24,000||30 days to 55 years||Choice of 16 funds and 5 investment strategies|
Systemic Withdrawal facility
|SBI Life Smart Wealth Assure||Rs. 50,000||8 years to 60 years||Choice of 7 funds|
Single premium payment
Partial withdrawal option from 6th year
|ICICI Pru Signature||Rs. 30,000||30 days to 60 years||Unlimited free switches|
Life cover for the entire policy term
|PNB Metlife Smart Platinum||Rs. 30,000||7 years to 70 years||Flexible premium payment|
Option to change the sum assured
Auto Rebalancing option
ULIPs can be categorised into different types based on the following factors:
Here are the different types of ULIPs based on the risk profile:
Unit-Linked Insurance Plans (ULIPs) are an investment opportunity that can provide you financial support and good returns alongside a life cover altogether. A few of its noteworthy benefits are:
There are some conditions you need to consider before investing in ULIP plans. The eligibility to invest in the best ULIP plans are:
|Term of policy||10-20 years|
|Minimum age of entry||90 days|
|Maximum age of entry||50 years|
|Minimum maturity age||18 years|
|Maximum maturity age||60 years|
Premium paid towards top ULIP plans is eligible for income tax deductions under Section 80C. Under this, you can claim a maximum tax deduction of Rs. 1.5 lakhs. Additionally, returns from this investment are exempt from income tax under Section 10(10D) of the IT Act.
However, this maturity benefit is available only for policies bought before 1 February 2021. For policies issued after this date, the maturity benefit is taxed as a capital asset if the policy’s annual premium exceeds Rs. 2.5 lakhs.
Moreover, pay-outs to nominees in case of accidental death of the policyholder are completely tax-free. Similarly, partial withdrawals up to 20% of the fund’s value are also exempt from taxation as per Section 10(10D).
ULIPs allow investors to financially secure their future with a sound investment plan and that of their loved ones in case of their untimely demise. With the best ULIP plans, you can also create a large corpus to accomplish your life’s goals like children’s education, marriage or retirement planning.
To maximise your investments and diversify your portfolio, you can start investing with Navi Mutual Fund. With Navi, you can get access to a host of funds, including the Nifty 50 Index Fund and enjoy the long-term benefits of the low-expense ratio.
Ans: Yes. ULIPs are certainly an option worth considering if you are looking to fulfil long-term goals like buying a new car, house or marriage.
Ans: The total value of all the units held by the policyholder of a ULIP policy is called the fund value. It is calculated as the number of units held multiplied by the net asset value (NAV) of a fund.
Ans: Surrender charges refer to the fee imposed on the policyholder in case of a partial or full withdrawal before the maturity period. The surrender charges depend on the fund value and the year in which the policy is surrendered.
Ans: You need to initiate a surrender request with your insurer to cancel the ULIP policy. However, you can get the amount after the completion of the lock-in period.
Ans: Yes, you can move your investment from one fund to another within the same plan.
Ans: In comparison with Fixed Deposit, ULIPs are considered more beneficial as it offers you life cover other than keeping your funds safe.
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Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
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