Updated on October 3rd, 2018
The Unit Linked Insurance Plans has gained a huge popularity since the budget reintroduced long-term capital appreciation on equity instruments.
As one of the best investment options, ULIP plans offer the dual benefit of investment cum insurance at the same time.
With the help of ULIP plans, one can not only secure their family financially but can also create a financial cushion by making an investment in equity related instruments so that they can fulfill their long-term and short-term financial goals.
As one of the attractive investment options, there is a wide range of ULIP plans offered by the insurance companies. Let’s take a look at the best ULIP plans in India for investment.
5 Best ULIP Plans in India
1. HDFC Life Click to Invest
HDFC Click to Invest is a unit linked insurance plan that comes with zero allocation charges and offers the dual benefit of insurance cum investment under a single plan.
The plan provides market linked returns on investment and offers an opportunity to achieve long-term financial objectives. Let’s take a look at some of the key features of the policy.
- The plan comes with three options for premium payment i.e. single pay, limited pay, and regular pay.
- The plan provides 8 fund options to invest in.
- The plan provides the option to switch between funds.
- Maturity benefit is paid to the insured in case he/she survives the entire tenure of the policy.
- In the event of the demise of the insurance holder death benefit as sum assured amount is paid to the beneficiary of the policy.
2. Aviva iGrowth
Aviva iGrowth is a non-participating ULIP plan that provides the combined benefit of savings cum insurance coverage under the single plan.
Aviva iGrowth plan helps to create wealth by making an investment in equity market-linked instruments. Let’s take a look at some of the key features of Aviva iGrowth.
- Aviva iGrowth plan offers the benefit of loyalty addition.
- The policy offers three different fund options to choose from.
- The plan provides the option of partial withdrawal.
- Aviva iGrowth plan comes with an in-built accidental death benefit rider.
- The insured can avail tax benefit under section 80C and 10(10D) of income tax act on the premium paid and the claim proceeds.’
3. SBI Life eWealth
This is a non-participating online ULIP plan that offers the benefit of wealth accumulation along with life protection. The plan offers liquidity in form of partial withdrawals.
With the feature of Automatic Asset Allocation, SBI Life eWealth provides stress-free market linked returns. Under this plan, a part of the premium is invested in equity and debt instrument to order to create a return on investment and the other part of the premium is used to provide insurance coverage. Let’s take a look at some of the salient features offered by SBI Life eWealth.
- The policy can be availed in two variants i.e. Growth plan and Balanced Plan.
- With the option of Automatic Asset Allocation, the policyholder can avail hassle-free process of wealth management.
- The plan does not include any allocation charges.
- The insured can take advantage of tax benefit offered by the policy under section 80C and 10(10D) of the Income Tax Act.
4. Bajaj Allianz Future Gain
As one of best ULIP plans, Bajaj Allianz Future Gain provides an opportunity to avail profitable returns on investment and also offered the benefit of life insurance.
According to one’s own requirement and suitability, the insured can choose to invest in various fund options offered by the policy. Let’s take a look at some of the key features of Bajaj Allianz Future Gain.
- The sum assured of the policy ranges from 7-10 times the yearly premium paid.
- The policy comes with the flexible option of premium payment and policy term.
- The plan offers the option of 7 funds to choose from.
- In case the policyholder surrenders the policy then he/she can avail of the benefits in installments over the period of 5 policy years.
- The insurance holder can avail the benefit of tax exemptions under section 10(10D) and 80C of Income Tax Act.
5. PNB MetLife Smart Platinum
This is a whole life ULIP plan that provides the benefit of investment and insurance. As one of the best investment plan, PNB MetLife Smart Platinum provides an opportunity for the policyholder to create a financial cushion in a long run and gain their ultimate financial objectives of life. Let’s take a look at some of the key features of PNB MetLife Smart platinum.
- The plan provides the option of 6 funds to choose from.
- The plan offers liquidity in form of partial withdrawals.
- The policy offers a free look period of 15 days during which the policyholder can cancel the plan in case if he/she is dissatisfied with the terms and conditions of the policy.
- The plan provides flexibility to switch between funds.
Being insurance cum investment policy, ULIPs are considered one of the most productive options of investment.
However, before zeroing in on a particular plan it is important for investors to use online ULIP calculator to find out the percentage of returns offered by each of these ULIP plans in order to make a well informed decision.
Remember, knowing your investment goals and getting acquainted with the market will help you earn higher returns on your investment.