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ULIP Plans

The term ULIP stands for Unit Linked Insurance Plan. A ULIP is an investment combined with insurance. Under this plan, policyholders can pay the premium once a year or once in a month. Some of the amount paid as premium is used to buy a life insurance policy and the remaining money is invested.

Under these investments plans are prone to risks associated with the capital market. The person purchasing life cover bears the risk of investment in his portfolio. Hence, it is required to make an investment choice based on the needs of the policyholder's risk appetite. A unit-linked plan is known to be much more transparent. The charges like allocation charges, fund management charges, etc. are written upfront.

Investors can change their Unit Linked Insurance Plan from debt to equity and vice versa without running from pillar to post and any tension of being charged.

Further, unit-linked insurance plans can be used for different payout benefits, which include retirement income i.e. pension, life insurance payouts, education expenditures, and income generation. In other cases, a person invests in ULIP plans to aid or support their beneficiaries so they don't suffer from financial instabilities. On the death of the policyholder, the nominees will receive the payouts.

A ULIP plan has various investment options which are similar to mutual funds. While investment in mutual funds is done for increasing one's assets. Whereas, investment in ULIP plans is done to achieve a specific goal. Further, one can plan according to their investment needs. A person who is investing in these plans can purchase shares in diversified strategies or a single go in the various market-linked ULIPs.

Although a policyholder needs to commit or reserve an initial lump-sum amount while purchasing ULIP but they are quite flexible. Payments can be done monthly, semi-annually, or annually. The premium frequency varies from plan to plan but they are proportional to the investment amount decided by the policyholder.

These plans are flexible as they can accommodate fund preferences of the policyholder during the investment tenure. Depending on one's investment, one can shuffle between bonds funds, diversified funds and stock funds.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.

Why should one buy ULIP Plans?

Let’s take a look at five reasons to buy ULIPs which help one in achieving their long term investment goals.

  • Lock-in Period

    ULIPs have a lock-in period of 5 years which helps a policyholder inculcate regular investment habits. For those unable to invest in long term ULIPs can invest in a single ULIP plan. Quite different from ELSS, the ULIP investment option is beneficial as the policy is bought once while one can enjoy tax benefits every year till the premium paying tenure.

    One must note that while ULIPs have a lock-in of 5 years, it means that the money invested in the first year can be withdrawn only after 5 years. The lock-in is calculated from the date when the policy is purchased or investment is made.

  • ULIP plans provide better returns

    Due to the equity advantage of ULIP policy, they offer better returns compared to other insurance products or other investment options. These investment option policies capitalize the premiums paid by policyholders in various funds. It is seen often that tax saving funds give two-digit returns. But the one thing investors need to do is look for different funds every time. Further, ULIP renewals also help in saving tax.

    Still, the maturity sum is dependent on the equity market performance when the investment is done. While endowment plans pay a lump-sum amount after a fixed period, the returns are quite low despite the fact they have capital protection features.

    These plans are tax-efficient and the maturity amount received by the policyholder is tax-free. So, ULIP plans are a far better choice as compared to different insurance plans.

    FD or fixed deposit is a great tax saving option that has a lock-in period of around 5 years but the returns added are too low and it is taxable according to one's income bracket.

  • Flexibility

    These plans are flexible as they have an option of switching funds during the plan tenure. One can choose from balanced, equity, growth, income funds according to one's risk-taking capacity and future goals. Usually, one can make four changes free of cost.

    Unlike the equity market, where one has to keep a record of all shares in which the funds are invested, in ULIP plans there is no need to keep a track. Instead one needs to choose a plan where they can change fund allocation during the policy period and keep the investment till maturity to get benefits.

  • Dual Advantage

    Even though life insurance plans provide protection and are good for tax savings, they don't offer any return. Under Section 80C of Income Tax Act, 1961, tax benefits are provided for up to a maximum of Rs 1.5 Lakh. This plan also provides 10 times the annual premium which is the sum assured value for policyholders below 45 years of age.

  • First-time investors

    Investors these days are more interested in insurance plans and mutual funds. As per the latest information from the Securities and Exchange Board of India, investment, mutual fund investment was recorded at 6.5 Crore. So, with the ever-changing trends, investing in a market-linked ULIP plan is the best option available to new investors.

    The policy returns cannot compare the returns offered by mutual funds in a long tenure but higher risks are involved. For a new or first time investor there are a myriad of ULIP plans to choose from which offer minimal risk on investing in the equity market. All a policyholder needs to do is decide on one's investment amount and future goal.

    Over time ULIPs are made investor-friendly by the New Insurance Regulatory and Development Authority of India by changing the guidelines from time to time from the date they were introduced. Various costs associated with ULIPs like administration charges, fund management charges, premium allocation charges and surrender charges have been reduced greatly.

    Thus, due to the diversity of funds, ULIP policies are great wealth generation tools. They are ideal plans for any investor willing to start investing.

Features & Benefits of ULIP Plan

ULIP Plans, as mentioned earlier, are full-fledged package with a wide range of features and benefits to offer to its buyers. Apart from the triple benefits of insurance, investment and tax benefits, it has a different set of other features and benefits that are described below:

Salient Features of ULIP Plans

ULIP plans have various benefits and features for its customers and as mentioned earlier they are a great investment tool especially in today's world where returns are as important as security. Below mentioned are few features of ULIPs that make these plans to be considered as worth buying. These features of ULIP plans are:

  • Flexibility

    The schemes offered under unit-linked investment plans are comprehensive and are not limited to a particular scope of the policy. These are different kinds of flexibility offered by ULIP policies that one can get while purchasing the policy.

    ULIPs offer a whole lot of all types of investment options whether high, medium or low-risk via different funds which are available under the same plan. One can choose a plan, which suits him or her best according to one's risk-taking capacity.

    ULIPs give the flexibility to either choose the sum assured or choose the premium based on one's needs. ULIPs also give the flexibility of enhancing one's investment portfolio through a plan which is top-ups to adjust to most investment opportunities due to any change in one's income flow or change in the external environment.

  • Life Cover can be chosen

    In the insurance portion of ULIP plans, life cover is chosen by the policyholder according to their needs and finances. Further, there is the flexibility to choose between various types of life insurance products.

  • Change in Premium Amount

    After a certain time period, most of the ULIP plans available in the market allow policyholders to increase or decrease their premium amount based on their financial condition. Further, the change in the premium can also be done according to one's change in future goals. There is another facility known as top up feature which helps policyholders in ULIP policies to invest more amounts into the plan so one can maximise their revenues whenever one wants to.

  • Additional Riders

    There are various riders in the ULIP plans in which one can get additional facilities by paying a little extra premium. For example, one can add a major illness rider, critical illness rider, etc. These plans allow their policyholders to add these riders for extra benefits and more security.

  • Different Fund Options to Choose from

    Basically, ULIPs are insurance plans where one can invest a portion of their money in market-linked equities like bonds, shares, mutual funds, etc. Almost all such insurance providers allow their policyholders to choose from various funds options. Such flexibility makes ULIPs unique. The funds can vary from conservative options to aggressive ones so as to ensure all needs of the customers get fulfilled.

  • Transparency

    One of ULIP plans most amazing features is its transparency towards the customer. As compared to other investment options, ULIPs provide great flexibility to its policyholders and so customers are in control of the policy. Before purchasing any ULIP policy, all the benefits, brochures, illustrations, features, free look period and other terms & conditions are clearly explained to the customers. Further, they double-check with their customers, before any investment is made.

    The structure of charge, an investment's value and rate of returns expected, for the entire span of policy are shown to the policyholder before the product is being bought by one because the policyholder would very much like to always understand the product in which they are investing their hard-earned money.

    Likewise, through the quarterly investment portfolio and annual account statement & along with reporting of the daily NAV is ensured that one is familiar and aware of the status of your investment portfolio at any time you like.

  • Liquidity

    All ULIP plans provide liquidity to the policyholders but they vary from insurance plan provider to provider from which the plan is purchased. Some insurance provider companies have a lock-in period of around 5 years after the completion of the period, the policyholders can withdraw the necessary amount. Hence they provide liquidity.

    In times of any unforeseen calamity or unforeseen future events, ULIPs also allow one to withdraw a partial amount from their Unit Linked Insurance Plans after completion of the first five years.

  • Different Benefits in a Single Plan

    One of the best features of ULIP is its ability to provide not just life insurance benefits but also providing investment options for people to grow their money through investment in the equity market. These plans provide dual benefits of life insurance and investment plans. So these policies are perfect for policyholders who want to have low-risk investment, protection benefits and money growth options.

  • Disciplined and Regular Savings

    ULIPs also help one build a regular habit of saving, which helps tremendously in building capital for future needs.

  • Spread of Risk

    With ULIPs, one gets the extra gain of market-linked growth where one does not need to actually participate in the stock market, besides the added gain of life-cover.

    *The above information is subject to change as per the norms of the insurance provider.

Core Benefits of ULIP Plans

Some of the core benefits of ULIP plans are:

  • Tax Benefits

    ULIPs are good not only for their returns and protection but are also perfect for tax benefits under Section 80C of the Income Tax Act, 1961. Further, they also provide an exemption from tax under Section 80D of the Income Tax Act, 1961 which can be availed by life insurance and critical illness rider holders. They offer a perfect way not only to channelize one's money but also ensure tax benefits to its customers. *Tax benefits are subject to change with tax laws

  • Risk mitigation

    ULIP plans divide the risks by investing in different funds and by offering protection to its policyholders. So, ULIPs are considered as low-risk investment tools. Further, these policies are perfect for policyholders who want to get the benefit from market growth without directly participating in buying or selling stocks.

  • Death Benefits and Maturity Benefits

    Apart from ULIP being great investment options, these plans also provide death & maturity benefits irrespective of the nature of the policy provider company. But they vary slightly from policy provider to provider. Below are the listed maturity and death benefits related to ULIP plans:

  • Death Benefits

    On the unfortunate demise of the policyholder, there are various death benefits paid out by the policy provider company. The death benefit is equal to the fund value plus sum assured in most cases. But it depends on the nature of death, whether it is natural or accidental and further death benefits vary from company to company.

  • Maturity Benefits

    Maturity benefits are paid by the policy provider company once the policy matures and on the survival of the policyholder beyond that period. Maturity benefit is equal to fund value. But different insurance companies provide different maturity benefits as per their terms and conditions of the plan.

*The above information is subject to change as per the norms of the insurance provider.

Best ULIP Plans

Although there are a lot of unit-linked insurance plans, however here we have compiled some ULIP plans with their basic parameters:

Name of the Plan

No. of Free Switches in a Year

Premium Allocation Charge

Policy Admin Charge

Entry Age

Minimum Premium

Aegon Life iMaximise Secure

4

Nil

Rs 100 per month

7-55 years

Rs 24,000 to Rs 36,000

Aviva Life Bond Advantage Plan

12

NA

Rs 40 per month

2-65 years

Rs 50,000

Bajaj Allianz Future Gain

Unlimited

0% to 1.5%

Rs 33.33 per month

1year-60 years

Rs 25,000

Bajaj Goal Assure

Unlimited

Nil

Rs 400 p.a. inflating at the rate of 5%

30 days-60 years

Rs 3,000 to Rs 36,000

Birla Sun Life Wealth Assure ULIP Plan

NA

5% of the basic premium during the 1st year

Rs 3000 p.a. for the initial 5 years

30 days-65 years

Rs 1 Lakh p.a.

Canara HSBC Grow Smart Plan

6

1-year policy term 8.4%

2-3 yeas policy term 6.4%

10-years policy term 5.4%

11th year onwards – Nil

Rs 416 per month

7-65 years

Rs 25,000 p.a.

Edelweiss Tokio Life Wealth Enhancement (Ace)

Unlimited

3%

2%

1%

Rs 40 per month

5-65 years

Rs 75,000

Exide Life Prospering Insurance Plan

NA

6.5% p.a.

Rs 500 per month

30 days-55 years

Rs 6,000

Future Generali Wealth Protect Plan

12

1-year policy term 5%

2-5 years policy term 3%

6th year onwards 2%

Rs 6000 p.a.

7-60 years

Rs 25,000

HDFC Click2Wealth

Unlimited

Nil

Nil

30 days-60 years

Regular Pay: Rs 1,000 to Rs 12,000

Single Pay: Rs 24,000

HDFC Life Pro Growth Plus

Unlimited

2.5% of the Yearly Premium

Rs 500 per month (maximum)

14-65 years

Rs 2,500-Rs 10,000

ICICI Pru Signature

Unlimited

Single Pay – 3%

Regular Pay – 0% to 5%

Single Pay: Rs 60 per month

Regular Pay: 0.18% per month

30 days-70 years

Rs 2 Lakh p.a.

ICICI Pru Wealth Builder II

NA

3% to 4%

Rs 500 per month

0-69 years

Rs 24,000 to Rs 48,000

IDBI Wealthsurance Growth Plan

NA

0.05%

Rs 500 per month

30 days-70 years

NA

India First Money Balance Plan

52

1-year policy term 6.7%

2-4 years policy term 4%

5th year onwards 3.5%

Rs 6000 p.a.

5 years-65 years

Rs 45,000

Rs 15,000

Rs 12,000

Kotak Single Invest Plus Plan

12

5%

4%

Rs 500 per month

18-55 years

Rs 3 Lakh

LIC Market Plus – I Growth Fund

4

0.033%

Rs 60 per month (maximum)

18-65 years

Rs 5,000-Rs 30,000

Max Life Fast Track Growth Fund

12

Single-Premium – 2%

Yearly Premium – 4%

Rs 1500 per year

18-50 years

Rs 25,000-Rs 1 Lakh

PNB MetLife Smart Platinum

4

1.25% p.a. (Maximum)

Rs 40 (maximum)

7-70 years

Rs 30,000-Rs 60,000

Pramerica Smart Wealth+ Plan

4

5.15%

2.5%

Rs 500 per month

8-55 years

Rs 36,000

Rs 30,000

Reliance Life Classic Plan II

52

1-year Policy Term 7.5%

2-5 years policy term 5.5%

6-9 years policy term 5%

10th year onwards 3%

Rs 6000 per month

7-60 years

Single-Premium: Rs 75,000 p.a.

Regular Premium: Rs 20,000 p.a.

Sahara Sanchit Jeevan Bima

2

3%

NA

18-65 years

Rs 30,000

SBI Life eWealth Insurance

NA

Nil

NA

18-50 years

Rs 10,000- No Limit

SBI Life Wealth Assure

2

3% of the Single Premium

Rs 45 per month

8-65 years

Rs 50,000

Shriram Life Wealth Plus Plan

NA

1-year policy term 7.5%

2-10th year policy term 5%

11th year onwards 3.5%

Rs 10 per month

7-60 years

Rs 12,000

SUD Life Dhan Suraksha Plus

1

6% of the Yearly Premium

Rs 6000 p.a. (maximum)

8-50 years

Rs 24,000

TATA AIG Life Invest Assure – II Balanced Fund

12

5% of the Yearly Premium

0.25% of the Yearly Premium

4-55 years

Rs 75,000-Rs 1.2 Lakh

*PaisaWiki does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

Types of ULIP Plan

Life insurance companies in India provide various types of ULIP plans. There are different plans for different financial needs of the policyholders. It is divided into 3 major categories. The categories are mentioned below:

Classified by Purpose

The first categorization of the ULIP plans is on the basis of purpose. They are:

  • Retirement ULIP plan

    In this ULIP plan, the policyholder's employer deducts a specific amount for a fixed period which is invested in the ULIP plan. After the retirement of the policyholder, this amount is paid as the lump sum amount or in installments as pension post-retirement of the person insured.

  • Wealth Generation ULIPs

    In this plan, one's wealth is accumulated for a fixed period for at least a minimum of 5 years. This plan is perfect for policyholders who are in their mid-20s to early thirties. For funding one's financial goal, one can invest in this plan.

  • Child Education ULIP Plan

    As a parent everyone wants to secure their child's future, the investment amount can be used to protect their future in case of any unforeseen circumstances or collecting funds for one's higher education. It's here that child education ULIP plan comes to help. This plan will provide finances in different stages of education.

  • Health Benefit ULIP plan

    Health emergencies can occur at any time so one should be prepared for the unforeseen circumstances. ULIPs also cover for hospitalisation.

Classification by Death Benefit

Basis of the death benefit offered under ULIP plans, these can be categorized as follows:

  • Type 1 ULIP Plans

    On the unfortunate death of the person insured, the legal heir or nominees gets an amount equal to the higher of sum assured or fund value as the death benefit, or if the death occurs at the inception of the policy when the sum assured is much greater than fund value, the insurer will pay fund value plus interests.

  • Type 2 ULIP Plans

    Under this plan, on the person insured sad demise, both sum assured and fund value will be paid as the death benefit.

Different Funds of ULIP Plans

The third category on which the ULIP plans are categorized is the different fund options available in ULIPs. The key types of ULIP plan basis different funds options are as follows:

  • Cash Funds

    Cash funds are considered as one of the safest funds. The policyholder selects an amount to invest in cash funds and gets assured returns as survival benefit.

  • Equity Funds

    Equity funds are one of the unsafe funds with the highest returns to invest in. Here, the sum is basically invested in equities and shares of companies.

  • Fixed Interest & Bond Funds

    Considered to be medium risk funds with great returns, these funds provide timely returns. These are a combination of secured and unsecured returns with prompt benefits. These are basically chosen by people with medium to high financial goals.

  • Balanced Funds

    Decent returns with medium risks are provided by balanced funds as the name suggests. The premiums paid by policyholders are invested in corporate bonds and the stock market.

Listed below is a table with types of ULIP funds

Fund

Long term Investment

Short term investment

Equity Shares Investment

Bond Fund

60% or above

Less than 40%

Nil

Secured Fund

Between 45% to 85%

Less than 40%

In between 15% and 55%

Balanced Fund

Between 30% to 70%

Less than 40%

In between 30% and 70%

Growth Fund

Between 20% to 60%

Less than 40%

In between 40% and 80%

What is not covered in the ULIP plan?

Certain conditions are not covered in ULIP plans. One should know that the insurance provider companies will not cover for the following conditions:

  • Death of the policyholder under any kind of intoxication like alcohol, drugs, etc.
  • Death due to participation in dangerous activities or sports
  • Death due to suicide within 12 months from the date of commencement of the policy

Under such conditions, the nominee is paid the current fund value but it varies from policy to policy.

*This list is only indicative and not exhaustive.

Tax Benefits of ULIP Plans

ULIP plans are not only great for investment but they have tax benefits too. Further, the income from ULIP policies is tax-free. The policyholder needs to invest once but they can claim tax benefits every year in the premium paying tenure.

  • Under the Section 80C Income Tax Act, 1961, the policyholders can get tax rebates on the premiums paid during the policy tenure
  • Under Section 10(10D) of the Income Tax Act, 1961, one can save tax on the payouts of the policy

*Tax benefits are subject to change with tax laws

How to buy the Best ULIP Plan Online in India?

If one is looking forward to buying a ULIP Plan online in India then the process is very simple. The entire procedure is quite user-friendly and even a layman can do it without any problem. The steps are as follows:

Step 1: First of all one should visit the website of any policy provider.

Step 2: Then one should search for ULIP plans that he or she is looking for.

Step 3: After thoroughly going through all the relevant information related to the investment in ULIP plan, 'buy now' option should be selected.

Step 4: Now basic details of the person who wishes to buy the plan like email address, phone number, name, age, and date of birth etc. should be filled in followed by clicking on the 'Proceed' button.

Step 5: Hereafter other professional details of that person like the name of the company where he is employed should be filled in along with the status of the company whether it is a public or private company, etc. have to be entered. After this other details like if the person to be insured has applied or enrolled for any other ULIP plans, etc. have to be entered. Now, one needs to click on the 'Next' option.

Step 6: After this, the name of the nominee and personal details of that person like gender, name, mobile number, email address, etc. need to be filled in.

Step 7: Henceforth details of any government id proof like PAN Card number, Aadhaar Card number, etc. are to be entered.

Step 8: Then the 'Proceed' button has to be clicked.

Step 9: At this juncture, the tenure of the selected policy, amount assured, and premium type needs to be filled in. After selecting the above details one will notice that the premium amount will be calculated by the website's in-built ULIP premium calculator. Now, one has to add riders to proceed to the next step.

Step 11: Then bank account details are to be filled and the 'Next' button to be clicked to proceed.

Step 12: Now the premium amount has to be paid.

Once the premium is paid, documents related to the new policy would be mailed to the customer.

Comparing Best ULIP Plans Online

There are a whole lot of ULIP plans available in the market and it is not easy to single out the one fulfilling one's needs. For selecting the best plan one need to compare various ULIP policies. To decide the best ULIP plans in India, one has to follow the steps below:

Step 1: One has to visit any policy provider website.

Step 2: Then all the ULIP Plans need to be compared.

Step 3: Herein basic details like phone number, name, age and email address are to be given.

Step 4: After giving these entire details one will get a list of similar investment ULIP Plans. Then one should select the ULIP plans to compare online. After selecting the chosen plans, the 'Evaluate plan' option has to be clicked for comparing other similar plans.

Step 5: One can also check using different parameters to know which plan suits him or her best in comparison to other unit-linked insurance plans.

Top ULIP Plans in Details

Some of the best ULIP plans are stated below:

*PaisaWiki does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

Aegon Life iMaximise Secure Plan

Aegon Life iMaximise Secure is an online ULIP plan by Aegon Life Insurance Company that offers dual benefits of market-linked returns and protection. This product is designed to provide a considerable degree of flexibility. This feature makes it best-suited to the individuals who are investing for the first time along with market experts alike. The plan also caters to the needs of the child of the investor even when s/he is not around via the Triple Benefit pay-out option that offers financial relief in different stages.

Key Features of Aegon Life iMaximise

  • This plan is a ULIP plan with a limited pay regular pay options as the mode of premium payment
  • In this plan, no premium allocated fees are charged by the policy provider company
  • There are two options, which can be availed under the death benefit
  • There are additional saving benefits and income benefits are also payable under the death benefit
  • There are three types of funds available for investment. They are:
    • Debt fund
    • Secure fund
    • Blue-chip fund

Benefits of Aegon Life iMaximize

  • The person insured gets TFV (Total Fund Value) when the policy matures
  • On the unfortunate death of the policyholder, there are two options available:
    • Under option 1 of the death benefit, the sum which is higher of sum assured which includes:
      • The top-up sum assured due to any partial withdrawal made by the policyholder in previous 2 years, or
      • Top up Fund value or any other fund value, or
      • 105% of the total premiums paid will be paid to the nominee
    • Under the second option, any amount which is higher of sum assured that includes top-up sum assured, or 105% of the premiums paid is paid immediately to the nominee after the death of the policyholder
  • Under Additional Savings Benefit, all the remaining premiums are considered as paid by the policy provider company. The amount paid by the insurance company is equal to the premium which was supposed to be paid every year till the policy matures i.e. end of plan tenure under Maturity and Income benefit. The fund value and top-up fund value gets automatically allocated as a secure fund, which is paid on the death of the policyholder
  • Under this plan, a policyholder can avail income tax benefits under Section 80C on premiums paid and under Section 10(10D) on the claim amount

*Tax benefits are subject to change with tax laws

Eligibility of Aegon Life iMaximize

  • Minimum entry age of the person to be assured - 7 years
  • Maximum entry age of the person to be assured - 55 years
  • Maturity age of policyholder - 70 years
  • Policy tenure - 15 years, 20 years and 25 years
  • Minimum premium paying tenure - 5 years
  • Maximum premium paying tenure - 25 years
  • Premium payment frequency - Monthly or yearly
  • Minimum premium amount to be paid - Rs 24,000
  • Maximum premium amount to be paid - No limit

Inclusions of Aegon Life iMaximize

  • If the fund value is a maximum of 20%, then there are 4 free partial withdrawals will be allowed annually
  • The policy also allows 4 free switches every year for shuffling between funds
  • Using the Premium Redirection option, the future premiums will be redirected by the policyholder to a new fund and one gets 2 redirection options free
  • The top-up of Rs 5000 (minimum amount) can be done to increase the fund value
  • The necessary top up on sum assured can be up to:
    • 10 times if the policyholder's age is up to 35 years
    • 25 times if the policyholder's age is up to 44 years
    • 10 times if the policyholder's age is greater than or equal to 45 years

Exclusions of Aegon Life iMaximize

The death benefit will only be paid if the policyholder doesn't commit suicide within 1 year from the date of commencement of the policy or on the revival of fund value.

Aviva Life Bond Advantage Plan

Aviva Life Bond Advantage Plan is a unit-linked insurance plan that comes along with a single premium facility. This plan permits its buyers to invest one-time and enjoy the savings facility and life coverage for a longer period. This plan lets the policyholder increase the exiting premium with time.

Key Features of Aviva Life Bond Advantage Plan

  • This plan offers 7 different fund options to choose from
  • Loyalty Additions on every 10thyear
  • Allows partial withdrawals and systematic partial withdrawals
  • The policyholder is offered with the fund liquidity option

Benefits of Aviva Life Bond Advantage Plan

  • The policyholder enjoys maturity benefit if s/he outlives the entire term of the policy. This is equal to the fund value of the plan
  • The plan also comes handy with the death benefit, which is higher of the basic sum assured and fund value
  • The policyholder can choose from the regular inflow of a fixed amount of cash from the fund through Systematic Partial Withdrawals
  • Under section 80C and 10(10D) of the Income Tax Act, 1961, the policyholder also gets to enjoy tax benefits on the death coverage and premiums paid

*Tax benefits are subject to change with tax laws

Eligibility Criteria of Aviva Life Bond Advantage Plan

  • Minimum entry age of the person to be assured – 2 years
  • Maximum entry age of the person to be assured – 65 years
  • Maturity age of policyholder – 18 years (minimum), 75 years (maximum)
  • Policy tenure – 10 years, 73 years (subject to the maximum age of 75 years of the policyholder at maturity)
  • Minimum premium paying tenure – Single Premium
  • Maximum premium paying tenure – Single Premium
  • Premium payment frequency – Single
  • Minimum premium amount to be paid – Rs 50,000
  • Maximum premium amount to be paid – NA

Bajaj Allianz Future Gain

Bajaj Allianz Future Gain is a unit-linked endowment insurance plan that ensures maximum allocation of the premium towards investment, hence, enhances returns on that investment. This plan also offers flexibility with unlimited free switches. Moreover, the tax-saving feature of the plan allows the investor to make the most of the ULIP.

Key Features – Bajaj Allianz Future Gain

  • This plan is a unit-linked investment plan with limited pay and regular pay options
  • This plan has 2 investment options. They are:
    • Wheel of Life Portfolio Strategy
    • Investment Portfolio Strategy
  • Selectable Portfolio Strategies: Under these options, a policyholder can invest in the below two strategies
    • Wheel of Life Portfolio Strategy: The entire amount is invested into 5 types of funds excluding Asset Allocator Fund II and Pure Stock Fund in a fixed ratio. The ratio keeps changing according to the tenure of the policy. Towards the policy maturity, most of the money gets invested into liquid fund and bond fund so that the person insured's money is safeguarded from the volatility of the market.
    • Investment Portfolio Strategy: If the person insured invests the premiums paid as per their individual preferences, one can choose this strategy. There are 7 different funds available to meet one's personal financial goal. Under these plans a policyholder can invest:
      • Asset Allocation Fund II
      • Accelerator Mid-Cap Fund II
      • Bond Fund
      • BlueChip Equity Fund
      • Equity Growth Fund II
      • Liquid Fund
      • Pure Stock Fund

Benefits of Bajaj Allianz Future Gain

  • Maturity Benefits: On the maturity of the policy, the person insured gets the fund value on the premiums paid regularly which also includes top-up fund value. The person insured can opt to get the maturity sum in multiple installments in a term of 5 years under this plan.
  • Death Benefits: On the unfortunate death of the person insured, the nominees shall get greater of:
    • Sum assured plus (top-up sum assured - Partial Withdrawals) or,
    • Fund value (FV) plus top-up fund value or,
    • 105% of the total premiums paid till the policyholder's death
  • Tax Benefits: Under this plan, a policyholder can avail income tax benefits under Section 80C on premiums paid and under Section 10(10D) on the claim amount

*Tax benefits are subject to change with tax laws

Eligibility of Bajaj Allianz Future Gain

  • Minimum entry age of the person to be assured - 1 year
  • Maximum entry age of the person to be assured - 60 years
  • Minimum policy tenure - 18 years  
  • Maximum policy tenure - 70 years
  • Minimum premium paying tenure - 5 years
  • Maximum premium paying tenure - 30 years
  • Premium payment frequency - monthly, quarterly, half-yearly or yearly
  • Minimum premium amount to be paid - Rs 25,000
  • Maximum premium amount to be paid - Rs 12 Lakh
  • Minimum sum assured:
    • Higher of 10 times the annual premium or 0.5 times term annual premium for people below 45 years of age
    • Higher of 7 times the annual premium or 0.25 times term annual premium for people above or equal to 45 years of age
  • Maximum sum assured - No limit
  • The top-up sum assured - The top-up sum assured will be as follows:
    • 25 times the top-up sum assured of the premium for people below 45 years of age
    • 10 times the top-up sum assured of the premium for people above or equal to 45 years of age

Inclusions of Bajaj Allianz Future Gain

  • Partial withdrawals: The policyholder is allowed to make partial withdrawals after a period of 5 policy years against any unit of a minimum value of Rs 5000
  • Free switching: Under Investor Selectable Portfolio strategy, free switches are allowed between different funds
  • Under Switchable Portfolio strategies, one can increase their top-up premium by Rs 5000 minimum at any time
  • There are various additional riders or add-ons available with the policy. One or more can be added to the base plan. They are:
    • Accidental Permanent Total Rider
    • Accidental Death Rider
    • Critical Illness Rider
    • Family Income Benefit Rider
    • Partial Disability Rider
    • Waiver of Premium Rider

Exclusions of Bajaj Allianz Future Gain

The death benefit will only be paid if the policyholder doesn't commit suicide within 1 year from the date of commencement of the policy or on the revival of fund value. In such cases, the death claim is settled by paying the nominees with the fund value payable at that time.

Birla Sun Life Wealth Assure Plus ULIP Plan

Under ABSLI Wealth Assure Plus plan, the policyholder bears the risk of investment in the investment portfolio. This plan allows the wealth to grow over the longer period while safeguarding it against the demise of the insured, total permanent disability, and critical illness.

Key Features of Birla Sun Life Insurance - Wealth Assure Plan

  • This plan is a limited pay ULIP plan without any bonus option
  • The premium paying tenure is 5 years in this Birla Sun Life plan
  • In this ULIP plan, there are three investment schemes available. They are:
    • Systematic Transfer Facility
    • Self-Managed Option
    • Life Cycle Option
  • There are 13 different types of funds available under this policy
  • In the policy, there are Guaranteed Additions (GA) available as a loyalty which are added under Fund Value
  • This plan also has survival benefits. On maturity of the policy, the fund value (FV) is paid to the person insured as a maturity or survival benefit
  • On the unfortunate death of the policyholder, the person insured gets the sum assured plus fund value, which will be paid as a death benefit to the nominee
  • This plan has 4 additional riders

Benefits of Birla Sun Life Insurance-Wealth Assure Plan

  • Under this plan, a policyholder can avail income tax benefits under Section 80C on premiums paid and under Section 10(10D) on the claim amount
  • Investment Fund Option –This plan has 3 investment options, namely
  • Life Cycle Option –In this option, all the money is invested in debt and equity funds. Depending on the policyholder's age investment portfolio is made
    • Systematic Transfer Option:Under this plan, the money is put into liquid plus funds and then systematically transferred to different specific funds every month
    • Self-Managed Option:Under this, the policyholder gets to manage the fund according to their wishes or financial target. One can choose from various 13 funds
  • Death Benefit –On the death of the person insured within the plan tenure, then the nominee gets Sum Assured plus Fund Value, that will be paid as death benefit and the plan ends
  • Maturity Benefit –On maturity of the policy until the person insured gets the fund value maturity benefit and the plan ends

Eligibility of Birla Sun Life Insurance-Wealth Assure Plan

  • Minimum entry age of the person to be assured - 8 years
  • Maximum entry age of the person to be assured - 65 years
  • Maturity age of policyholder - 75 years
  • Policy tenure - 10 years, 15 years, 20 years, 25 years and 30 years
  • Premium paying tenure - 5 years
  • Premium payment frequency - Monthly or yearly
  • Minimum premium amount to be paid - Rs 90,000 per annum on yearly payment & 1,32,000 per annum if paid monthly
  • Maximum premium amount to be paid - No limit
  • Sum Assured:
    • Premium paid – General premium multiplied by (10 years or Policy Term/2) for policyholders with age below 45 years
    • Basic Premium multiplied by greater of (10 years or Policy Term/4) for age above or equal to 45 years

Exclusions of Birla Sun Life Insurance-Wealth Assure Plan

The death benefit will only be paid if the policyholder doesn't commit suicide within 1 year from the date of commencement of the policy or on the revival of fund value.

HDFC Click2Invest

HDFC Click2Invest is an online unit-linked policy, which provides market-linked returns and minimal charges. The plan safeguards the policyholder’s family with a valuable financial safety net and best meets the policyholder’s investment needs.

Key Features HDFC Click to Invest

  • This ULIP plan comes with three options: limited pay, regular pay and single pay options
  • There are eight types of funds available under this investment plan. They are as follows:
    • Bond Fund
    • Balanced Fund
    • Blue Chip Fund
    • Conservative Fund
    • Diversified Equity Fund
    • Equity Plus Fund
    • Income Fund
    • Opportunities Fund

Benefits of HDFC Click to Invest

  • On maturity of the plan, the insured person gets the Total Fund Value (TFV)
  • The maturity amount can be paid to the policyholder in equal installments in tenure of 5 years as payouts or can be collected in a lump sum amount
  • On the unfortunate death policyholder, the larger amount of sum assured or fund value at the time of death or 105% of the total premiums paid is paid to the nominee
  • Tax Benefits: Under this plan, a policyholder can avail income tax benefits under Section 80C on premiums paid and under Section 10(10D) on the claim amount

*Tax benefits are subject to change with tax laws

Eligibility of HDFC Click to Invest

  • Minimum entry age of the person to be assured - 3 months
  • Maximum entry age of the person to be assured - 65 years
  • Minimum policy tenure - 5 years  
  • Maximum policy tenure - 20 years
  • Minimum premium paying tenure - 5 years
  • Maximum premium paying tenure - 20 years
  • Premium payment frequency - monthly, quarterly, half-yearly or yearly
  • Minimum premium amount to be paid - Rs 12,000 yearly
  • Maximum premium amount to be paid - No limit
  • Minimum sum assured:
    • 10 times the annual premium for people below 45 years of age
    • 7 times the annual premium for people below 45 years of age
    • Single pay - 1.25 times the premium amount

Exclusion of HDFC Click to Invest

The death benefit will only be paid if the policyholder doesn't commit suicide within 1 year from the date of commencement of the policy or on the revival of fund value. In such cases, the death claim is settled by paying the nominees with the fund value payable at that time.

ICICI Prudential Signature Plan

ICICI Pru Signature Plan is the newest ULIP by ICICI Prudential Life Insurance. The plan offers flexible investment options and life insurance under one plan. The entire premium of the policyholder is distributed amongst the funds of his/her choice without any deduction together with Policy Administration Charges and Return of Mortality at maturity.

Key features of ICICI Prudential Signature Plan

  • This plan is insurance cum investment with very low charges
  • No charge for premium allocation
  • There are wealth boosters available after every 5 years on completion of 10th plan year
  • Policy Administration Charges and Mortality Charges are paid back to the policyholder on the maturity of the policy
  • There is an option of whole life cover in the plan till 99 years of age

Benefits in ICICI Pru Signature Policy

  • This policy is also an investment policy, so benefits availed from the policy to a great extent depends on the performance of shares at the time of maturity of the policy
  • Maturity Benefit -On survival of the policyholder, he/she shall be paid a fund value. Fund Value is calculated on multiplying the number of shares of various funds one holds along with NAV of purchased funds.
  • Death Benefit -In case of unfortunate death of the policyholder, the nominee will get the larger amount of the below mentioned:
    • Sum Assured or
    • 105% of the premiums paid or
    • Total Fund Value (TFV) left
  • Tax Benefits -Under this plan, a policyholder can avail income tax benefits under Section 80C on premiums paid and under Section 10(10D) on the claim amount. *Tax benefits are subject to change with tax laws
  • Policy Administration Charges and Return of Mortality expenses -All policy administration charges or mortality charges that are charged throughout the plan tenure of the policy are paid back to the person insured during the maturity of the policy if all due premiums are paid. Any tax paid and mortality charges are not paid back. These charges are not returned for Whole Life Option of the plan.
  • Wealth Boosters -This policy contributes to the policyholder's wealth generation by allocating extra shares to one's plan after every 5 plan years after the completion of 10 policy years until the policy matures.
  • Every Wealth Booster is equal to a maximum of 3.25% on the Fund Values on average, which includes the top-up fund value as well in the policy.
  • Wealth Boosters are allocated to every fund in the same ratio as per the value of all the units in total held by the policyholder in each particular fund during the allocation of the same.
  • Partial Withdrawals -If the policyholder is older than 18 years of age and after the first 5 policy years, they are eligible to have partial withdrawals from one's funds. They can withdraw the money (partial withdrawals) an unlimited number of times till the total sum of withdrawals is below 20% of the Fund Value in a particular policy year.

Eligibility of ICICI Pru Signature Policy

  • Minimum entry age of the person to be assured - 0 months
  • Maximum entry age of the person to be assured - 60 years
  • Minimum maturity age of policyholder - 18 years
  • Maximum maturity age of policyholder - 75 years, 99 years for whole life option
  • Minimum policy tenure - 10 years  
  • Maximum policy tenure - 30 years, 99 years for whole life option
  • Premium paying tenure -
    • For regular pay the same as the number of policy years
    • Limited pay - 5 years, 7 years and 10 years
    • Limited pay under whole life option - 5 years, 7 years, 10 years and 15 years
  • Premium payment frequency - monthly, quarterly, half-yearly or yearly
  • Minimum premium amount to be paid - Rs 30,000 yearly, Rs 60,000 for whole life option
  • Maximum premium amount to be paid - No limit
  • Minimum premium top-up - Rs 2,000

Inclusions of ICICI Pru Signature Policy

  • A person can use a Systematic Withdrawal Plan option where the policyholder is allowed to withdraw a fixed amount of money regularly after a fixed tenure. This sum can be used for post-retirement options like funding one education or as a pension.
  • Top-ups -A person can add top up their premium amount in the last five policy years. Although there is no limit it cannot exceed the premium amount that was paid by the policyholder initially.
  • Switching -One can switch their current investments from one type of fund to another type of fund at any time during the plan tenure. There is no limit on the number of switches.
  • One can use the settlement option available in the plan to withdraw one's money. Under this option, the policyholder can choose to withdraw their money in equal amounts between 1 year and 5 years. One can receive this money on a yearly, half-yearly, quarterly or monthly basis. But in this case, the risk in investment of the policyholder will be answerable not by the policy provider company. Further, one also needs to pay the Fund Management Charge.
  • Other flexibilities available in this plan are:
    • Increase in sum assured amount or decrease in the same.
    • Increase in premium paying term or decrease in the same.
    • Increase in policy tenure or decrease in the same.

Exclusion of ICICI Pru Signature Policy

The death benefit will only be paid if the policyholder doesn't commit suicide within 1 year from the date of commencement of the policy or on the revival of fund value. In such cases, the death claim is settled by paying the nominees with the fund value payable at that time.

ULIP Plans with Lowest Premium

Some plans with the lowest premiums are:

  1. Kotak Single Invest Plus Plan
  2. Reliance Life Classic Plan II
  3. SBI Life Wealth Assure
  4. SBI Life eWealth Insurance
  5. Exide Life Prospering Insurance Plan

*Disclaimer: PaisaWiki does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

  • Kotak Single Invest Plus Plan

    Kotak Single Invest Plus Plan is a single-premium unit-linked joint life insurance plan. This plan offers joint life cover, that is, it offers cover on both the lives. Packed with a wide array of funds and easy liquidity it ensures that the investment works for the investor and not otherwise. It also gives an advantage of Loyalty Addition.

    Key Features of Kotak Single Invest Plus Insurance Plan

    • It is a ULIP plan with a single premium option
    • No premium allocation charge will be deducted in this policy
    • This plan has a unique feature in which the policy covers close family relationships like parent, child, spouse, grandchild and grandparents
    • At the end of 10th policy year for a 10-year term plan and 15th policy year for a 15-year term plan, the policyholders get loyalty additions if the premium amount is greater than Rs 50,000
    • The plan provides a dual death benefit in which 1.25 times the single premium is paid to the nominee
      • As death benefit on the unfortunate death of the first policyholder
      • The larger amount of
        • 10 times the single premium or,
        • Fund value plus loyalty additions are paid to the nominee on death of the second policyholder
      • The plan has a maturity benefit in which on the survival of any of the policyholders till the maturity of the policy, the person insured gets fund value plus loyalty additions.

    Benefits of Kotak Single Invest Plus Insurance Policy

    • Tax Benefits -Under this plan, a policyholder can avail income tax benefits under Section 80C on premiums paid and under Section 10(10D) on the claim amount. *Tax benefits are subject to change with tax laws
    • Death Benefit -On the unfortunate death of the first person insured during the policy term, the nominee gets:
      • 25 x single premium which will be paid to the nominee as death benefit & the plan is active for covering the life of the second policyholder
      • But, on the sad demise of the second person insured when the policy is active then the nominee is paid
        • Greater of 10 x single premium paid by the policyholder or,
      • Fund Value, which also includes Loyalty Additions, is paid to the nominee as death benefit and the plan ends.
      • On the unfortunate death of both policyholders, the nominee is paid with 1.25x single premium paid by the policyholder during the purchase of the policy plus 10x single premium or fund value plus the loyalty additions, as the death benefit and the policy ends.
    • Maturity Benefit –If both or of the policyholders survives till the policy matures then the person insured gets Fund Value plus Loyalty Additions as maturity benefit and the plan ends.

    Eligibility of Kotak Single Invest Plus Insurance Policy

    • Minimum entry age of the primary person to be assured - 18 years
    • Maximum entry age of the primary person to be assured - 60 years
    • Minimum entry age of the second person to be assured - 3 years
    • Maximum entry age of the second person to be assured - 60 years
    • Minimum maturity age of primary policyholder - 28 years
    • Maximum maturity age of primary policyholder - 70 years
    • Minimum maturity age of secondary policyholder - 13 years
    • Maximum maturity age of secondary policyholder - 75 years
    • Minimum policy tenure - 10 years  
    • Maximum policy tenure - 15 years
    • Premium paying tenure - Single one-time premium payment option
    • Premium payment frequency – one-time payment at the purchase of the policy
    • Minimum premium amount to be paid - Rs 30,000
    • Maximum premium amount to be paid - No limit
    • Death benefit:
      • For first death - 1.25 times the single premium
      • For second death - 10 times the single premium

    Inclusions of Kotak Single Invest Plus Plan

    • Riders –This plan doesn't have any riders.
    • Investment options of the fund -There are 6 types of investment options available under this plan. They are:
      • Classic Opportunities Fund
      • Dynamic Bond Fund
      • Dynamic Floor Fund II
      • Dynamic Gilt Fund
      • Frontline Equity Fund
    • Top-up –In this plan, a top-up premium facility is not available.
    • Switching -Under Kotak Single Invest Plus Plan, for the first 12 switches in a particular policy year there is no charge but thereafter a nominal charge of Rs 500 will be deducted for every switch in a particular plan year.
    • Partial Withdrawal -Under partial withdrawals, the policyholder is not allowed to withdraw any amount for the first five plan years. Thereafter a portion of the then fund value can be taken out. The minimum amount is Rs 5000 for partial withdrawal so that there is a fund value of Rs 10,000 remaining after withdrawing the amount.

    Exclusions of Kotak Single Invest Plus Plan

    The death benefit will only be paid if the policyholder doesn't commit suicide within 1 year from the date of commencement of the policy or on the revival of fund value. In such cases, the death claim is settled by paying the nominees with the fund value payable at that time.

  • Reliance Nippon Life Classic Plan II

    It is a non-participating, unit-linked, individual life insurance plan. Reliance Nippon Life Classic Plan II permits the investor to make the investment for long-term and safeguard the investment against different uncertainties. The plan allows the investor to diversify the investment with the choice of different funds that one can switch amongst to protect against the market risks.

    Key Features of Reliance Classic Plan II

    • In the plan, the policyholder can invest in any of the funds according to their risk-taking capacity. The funds are:
      • Life Balanced Fund 1
      • Life Corporate Bond Fund 1
      • Life Equity Fund 3
      • Life Money Market Fund 1
      • Life Pure Equity Fund 2
    • In this plan, the premiums are paid through single pay or regular pay
    • The person insured can calculate the risks undertaken by him through a systematic transfer plan option in which all the purchased shares are transferred systematically from lower-risk funds to higher risk funds under a fixed specific interval.

    Benefits of Reliance Classic Plan II

    • Maturity Benefits -The policyholder on the maturity of the plan gets fund value plus top-up value.
    • Death Benefits- On the unfortunate demise of the policyholder, the nominee gets the larger value of sum assured/fund value plus the greater value of top fund value or top-up sum assured up to a maximum of 105% of the total premiums paid till the death of the policyholder.
    • In case of accidental death, the additional sum assured is paid to the policyholder.
    • Tax Benefits -Under this plan, a policyholder can avail income tax benefits under Section 80C on premiums paid and under Section 10(10D) on the claim amount. *Tax benefits are subject to change with tax laws

    Eligibility of Reliance Classic Plan II

    • Minimum entry age of the person to assured - 7 years
    • Maximum entry age of the person to assured - 60 years
    • Minimum maturity age - 22 years
    • Maximum maturity age - 75 years
    • Minimum policy tenure - 15 years  
    • Maximum policy tenure - 30 years
    • Minimum premium paying tenure - 15 years or single pay
    • Maximum premium paying tenure - 30 years
    • Premium payment frequency - monthly, quarterly, half-yearly or yearly
    • Minimum premium amount to be paid - Rs 15,000, Single pay - 75,000
    • Maximum premium amount to be paid - No limit
    • Minimum sum assured -
      • Higher of 10 times the annual premium or 0.5 times term annual premium for people below 45 years of age
      • Higher of 7 times the annual premium or 0.25 times term annual premium for people above or equal to 45 years of age
        • For single pay -
          • 125% of the single premium if below 45 years of age
          • 110% of the single premium if above 45 years of age
          • Maximum sum assured - No limit

    Benefits of Reliance Classic Plan II

    Grace Period: For monthly payments, the policyholder gets extra 15 days after the due date to pay the premium amount at no extra cost. For all other payments, the policyholder gets 30 days extra for paying the premium amount. The policy will lapse if the person insured doesn't pay the premiums on the due date.

    Policy Termination or Surrender Benefit: In case the policyholder surrenders the policy before the maturity date i.e. after completing 5 policy years, then the surrender value is paid. If he/she surrenders before the 5 plan terms, then only the fund value (net) after deduction of certain charges will be paid under the Discontinued Policy Fund. Under this fund, a guaranteed interest of 4% annually will be paid which compounded. On completion of the 5 years, the resulting fund value gets credited to the person insured.

    Free Look Period: In this period the person insured can read all the policy documents thoroughly and if found unsatisfactory, he/she can return the policy to the insurer at no extra cost.

    Tax Benefits: Under this plan, a policyholder can avail income tax benefits under Section 80C on premiums paid and under Section 10(10D) on the claim amount. *Tax benefits are subject to change with tax laws

    Inclusions of Reliance Classic Plan II

    • Under this plan fund switches up to 52 are free of cost in a particular plan year.
    • Under the premium redirection option, the person insured can change the funds of the future premiums through this option. After a span of 5 policy years, these benefits are transferred to any other policies.
    • Riders - Under the riders, the policyholders have been provided with an accidental death benefit rider that pays an extra sum assured on the death of a person insured as a result of an accident.
    • Top-Up - One can increase the top-ups available in this plan up to a maximum of
      • 125% of the premium if the policyholder is below 45 years of age or
      • 110% of the premium if the policyholder is above 45 years of age
    • After completion of 5 policy years, partial withdrawals are available from the fund value as well as top-up fund value (after 5 years from the first top-up paid).
    • The maturity benefit can be received by the policyholder in 5 installments in a span of 5 years after the maturity of the policy through the settlement option.

    Exclusions of Reliance Classic Plan II

    The death benefit will only be paid if the policyholder doesn't commit suicide within 1 year from the date of commencement of the policy or on the revival of fund value. In such cases, the death claim is settled by paying the nominees with the fund value payable at that time.

  • SBI Life Wealth Assure

    SBI Life Wealth Assure plan is a non-participating, unit-linked individual life insurance plan. This plan offers protection and wealth creation along with maximization with just a single payment. The investor can enjoy market-linked returns together with insurance coverage with a single premium.

    Key Features of SBI Life Smart Wealth Assure

    • The plan has an option in which a minimum amount is assured by the policy provider company under Return Guarantee Fund for a span of 10 years.
    • The person insured can choose all options i.e. equity and return guaranteed fund or P/E Managed Fund to get maximum returns. Further, they can also choose to invest in bonds and get extra protection through Accidental Death Benefit Rider
    • Maturity Benefit -On the maturity of the policy, the policyholder gets the higher of guaranteed NAV (minimum) or the NAV prevailing if chosen Return Guaranteed Fund.

    Benefits of SBI Life Smart Wealth Assure

    • Death Benefit –In case of death of the policyholder, the nominee gets the higher of the sum assured under the plan or the Fund Value at the prevailing NAV, with a minimum of 105% of the Single Premium paid.
    • Maturity Benefit –The person insured gets the Fund Value (FV) at the NAV prevailing at that time on the sum invested in Equity, P/E Managed Funds and/or Bonds + they will the sum under Return Guarantee Fund at the NAV prevailing at that time or the NAV which is guaranteed (minimum), which is greater of the above-mentioned.
    • Tax Benefits –Under this plan, a policyholder can avail income tax benefits under Section 80C on premiums paid and under Section 10(10D) on the claim amount. *Tax benefits are subject to change with tax laws
    • Investment Fund –In this policy, the person insured gets to invest in the following:
      • Bond Fund
      • Equity Fund
      • P/E Managed Fund
      • Return Guarantee Fund
    • The policyholder may opt to keep 100% of the sum in the Return Guarantee Fund or any amount in the funds of his/her choice.

    Eligibility of SBI Life Smart Wealth Assure

    • Minimum entry age of the person to be assured - 8 years
    • Maximum entry age of the person to be assured - 65 years
    • Maturity age - 75 years
    • Minimum policy tenure - 10 years  
    • Maximum policy tenure - 30 years
    • Premium paying tenure - single pay
    • Minimum premium amount to be paid - Rs 50,000
    • Maximum premium amount to be paid - No limit
    • Minimum sum assured -
      • 25 times the single premium for people below 45 years of age
      • 10 times the single premium for people above or equal to 45 years of age
    • Maximum sum assured -
      • 5 times the single premium for people below 45 years of age
      • 3 times the single premium for people above or equal to 45 years of age
    • Riders available - Accidental Death Benefit rider

    Inclusions of SBI Life Smart Wealth Assure

    • Switching Out - Return Guarantee Fund does not allow switching out. But if the subscription is taken in the new sub-fund which is under Return Guarantee Fund and plan term, it gives permission if at least 10 years are remaining from maturity. In this case, one can switch over to the Return Guarantee Fund.
    • On the contrary switching over investments among Equity Fund, Bond Equity and P/E Managed Fund are permitted.
    • The minimum value of switch amount should be Rs. 5,000.
    • Only up to two switches are allowed free of cost in a Policy Year.
    • Partial Withdrawal - One is allowed to make a partial withdrawal under this policy after completion of at least 5 policy years or in another case the life insured is minimum 18 years old. Only one partial withdrawal is allowed free of cost in one policy year. And a maximum of two partial withdrawals are permitted in one policy year and a total of 5 partial withdrawals in the full policy term if the policy is for a period less than 15 years and a total of ten partial withdrawals in the full policy term if the policy term is older than or equal to 15 years.

    Exclusions of SBI Life Smart Wealth Assure

    The death benefit will only be paid if the policyholder doesn't commit suicide within 1 year from the date of commencement of the policy or on the revival of fund value. In such cases, the death claim is settled by paying the nominees with the fund value payable at that time.

  • SBI Life eWealth Insurance

    SBI Life eWealth Insurance is a unit-linked non-participating individual life insurance plan. The plan covers the needs of the family of the investor in the event of any uncertainty. One can choose from the two plan options and apply online without any hassles.

    Key features of SBI Life eWealth Insurance

    • This plan is Unit Linked that does not give bonus
    • One can buy this plan online in three easy steps
    • Policyholders have different risk profiles. Hence, this plan is available in two options - Balanced and Growth to cater to respective risk profiles of policyholders.
    • One important feature of this plan is Automatic Asset Allocation that itself automatically maximizes returns of the policyholder’s investments.
    • There is an absence of Premium Allocation Charges in this plan thereby increasing the value of the fund.

    Benefits of SBI Life eWealth Insurance

    • Maturity Benefit –This point says that when the Fund matures Fund Value on that date is to be paid. If the policyholder wishes, he or she can receive the Fund Value in part installments spread over a period of 5 years from the date of maturity as per the Settlement Option clause with the plan.
    • Death Benefit –If the insured expires, higher of the following is payable to the nominee:
      • Fund Value
      • Sum Assured minus partial withdrawals made in the then last 2 years
      • One hundred and five per cent of the total premiums paid till the death of the policyholder.
    • Bonus – Bonus is not declared as it is a ULIP plan.
    • Tax Benefits –Under this plan, a policyholder can avail income tax benefits under Section 80C on premiums paid and under Section 10(10D) on the claim amount. *Tax benefits are subject to change with tax laws

    Eligibility of SBI Life eWealth Insurance Plan

    • Minimum entry age of the person to be assured - 18 years
    • Maximum entry age of the person to be assured - 50 years
    • Maturity age - 60 years
    • Minimum policy tenure - 10 years  
    • Maximum policy tenure - 20 years
    • Minimum premium paying tenure - 10 years
    • Maximum premium paying tenure - 20 years
    • Minimum premium amount to be paid - Rs 10,000 (yearly) or Rs 1000 (monthly)
    • Maximum premium amount to be paid - Rs 1,00,000 (yearly) or Rs 10,000 (monthly)
    • Sum assured - 10 times the total annual premium paid
    • Premium frequency - Monthly and yearly

    Inclusions of SBI Life eWealth Insurance

    • As it is a ULIP plan, certain charges are applicable. These charges are as following:
      • Premium Allocation Charge – There is no Premium Allocation Charge under this plan.
      • Policy Administration Charge – A meagre amount of Rs.45 is deducted monthly from the fund value at each month's start.
      • Fund management Charge – This charge depends on the type of fund chosen and is charged on a daily basis.
      • Mortality charge – Based on the policyholder's age and the Sum at Risk this charge is incurred on each month's first day.
      • Medical expenses on revival – In case of revival of the policy, if there are any medical expenses, their cost will be deducted from the Fund Value which can be up to a maximum of Rs.3000.
    • Riders – There are no additional riders with this plan.
    • Withdrawals in part – Under this plan, partial withdrawals are made available but only after completion of 5 policy years. As such maximum one withdrawal in a year is free of cost but after this withdrawal a charge of Rs. 100 per withdrawal is incurred. The minimum amount that can be withdrawn partially is Rs.5000 and then in multiples of Rs. 1000 amount of which can be a maximum of 15% of the Fund Value.

    Exclusions of SBI Life eWealth Insurance Plan

    The death benefit will only be paid if the policyholder doesn't commit suicide within 1 year from the date of commencement of the policy or on the revival of fund value. In such cases, the death claim is settled by paying the nominees with the fund value payable at that time.

  • Exide Life Prospering Insurance Plan

    This plan is a non-participating unit-linked insurance plan. The policyholder cannot withdraw or surrender the money invested in the linked insurance products partially or completely until the end of the 5th year.

    Key Features of Exide Life Prospering Insurance Plan

    • This ULIP plan has two premium paying options - regular pay & limited pay.
    • Using the Automatic Asset Rebalancing strategy, the premium amount is invested in equity & debt funds in a fixed ratio. The ratio keeps changing annually. Towards the plan maturity, a major portion of funds is invested into debt funds to guard the sum against market fluctuations. There are 6 types of funds available:
      • Balanced Fund
      • Exide Life Preserver
      • Exide Life Prime Equity
      • Exide Life Active Asset Allocation
      • Growth Fund
      • Secure Fund

    Benefits of Exide Life Prospering Insurance Plan

    • Under loyalty additions, a fixed per cent of Fund Value is paid as a death benefit or maturity benefit if the premium rate is above Rs.96,000.
    • The person insured on survival gets Fund Value plus top-up value.
    • Maturity benefit can be paid to the policyholder in lump sum, installments or both over a period of 5 years.
    • As death benefit the larger of the Sum Assured is paid, which are:
      • 105% of the total premiums paid
      • Sum assured plus top-up value
      • Fund value plus top-up value

    Eligibility of Exide Life Prospering Insurance Plan

    • Minimum entry age of the person to be assured - 0 years
    • Maximum entry age of the person to be assured - 55 years
    • Minimum maturity age - 18 years
    • Maximum maturity age - 75 years
    • Minimum policy tenure - 10 years  
    • Maximum policy tenure - 20 years
    • Premium paying tenure - 5 years, 10 years or regular pay
    • Minimum premium amount to be paid - Rs 24,000
    • Maximum premium amount to be paid - No limit
    • Minimum sum assured -
      • 10 times the regular premium for people below 45 years of age
      • 7 times the regular premium for people above or equal to 45 years of age

    Inclusions of Exide Life Prospering Insurance Plan

    • The policy allows partial withdrawals up to Rs 6000 after 5 policy years
    • There are unlimited switches available between various funds.

    Exclusions of Exide Life Prospering Insurance Plan

    The death benefit will only be paid if the policyholder doesn't commit suicide within 1 year from the date of commencement of the policy or on the revival of fund value. In such cases, the death claim is settled by paying the nominees with the fund value payable at that time.

ULIP Plans - FAQs

  • Q1. What is a grace period?

    Ans. If the policyholder fails to pay the premium within the due date then the person insured gets 30 days to pay the required premium without any extra fees or charges. This is known as the grace period.

  • Q2. Does one need to pay surrender charges after 5 years?

    Ans. No, there is no need to pay surrender charges after 5 years of the policy.

  • Q3. Does market volatility reduce life insurance?

    Ans. No, market volatility doesn't increase or decrease life insurance cover. The life cover isn't affected by market volatility. On the unfortunate death of the policyholder, ULIP will pay the fund value or complete life cover which is higher.

Written By: Paisawiki - Updated: 30 March 2021