" Insurance with a tax benefit. "

Ulip Plans

What is a unit linked insurance plan?

A unit linked insurance plan is a twin benefit plan giving you

Insurance + Investment

You pay a premium and invest in a unit linked insurance plan. The Ulip gives you a life cover (your life is insured) and this cost is deducted from the premium you pay. The Ulip has other expenses and these are deducted from the premium you pay.

The remaining amount (Premium – charges), is invested in equity (mutual funds and shares), even up to 100% if you are an aggressive investor. (You are willing to take risks for a higher return).

If you are a conservative investor, your money is invested in debt (fixed income securities), even up to 100% where your money is more secure.

Your money can also be invested in a balance of debt and equity giving you a moderate return for a moderate risk called balanced fund. (50% debt : 50% equity).

Why invest in Ulip Plans
Twin Benefit

Twin Benefit

You get insurance + investment benefit. Returns are high as your money is invested in the stock market.

Financial Goals

Financial Goals

Helps you achieve your financial goals such as education for your children and also money for your childrens marriage.

Rider Benefits

Rider Benefits

Riders give you lump sum amounts at critical times when you need money the most. They supplement your returns.

Tax Benefits

Tax Benefits

You get tax deductions on your salary, if you invest in a ulip. The amount you get at maturity is tax free.

Tax Benefits of a Ulip

You get a deduction under Section 80C of the Income tax act up to INR 1.5 Lakhs per year, on your taxable salary, for the premiums you pay for the Ulip. The maturity amount you get when the policy matures or the death benefit your family gets on your (policy holders) death, are tax free under Section 10(10D) of the income tax act.

Features of a Ulip

Lock in

A Ulip has a compulsory lock in of 5 years. You cannot withdraw your money for this time. Invest in a Ulip only if you have a long term horizon (You must stay invested for five years and you need to be sure of what you are doing).


You can switch your investment from equity to debt or a balanced fund (debt + equity) and vice versa in Ulips. This must be done under the same plan.

Fees in a Ulip

Premium allocation charge

This is charged to you out of the premiums you pay, for (fees/commissions) of the distributors (agents who sell the Ulip).About 8% of the premiums you pay are charged as premium allocation charge

Mortality charges

When you invest in a Ulip you are given a life cover (Your life is insured).The charges depend on age, gender, your health condition and the amount of insurance you take.

Fund management charges

The Insurer (Life Insurance Company), charges you fees for the management of your investment. The fees are charged from the premiums you pay.

The fund manager manages the assets of the fund (fees are 1.35% of the total value of all the assets /investments managed by the fund manager).

Policy administration charges

These are the fees charged for managing expenses (administration and paperwork), for the smooth running of the Ulip (Fund).

Surrender charges

If you surrender the Ulip before 5 years (lock in), you have to pay the surrender charges. A maximum of INR 6000 is charged on surrender (You cannot be charged more than this).

Switching charges

If you switch funds under a plan.

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