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How Are ULIP Plans A Smart Investment Option?

Updated On Sep 26, 2023

Under a ULIP, your premium gets invested in the funds you select and in the proportion you specify. On fruition of the policy, you receive your fund value as a lump-sum maturity benefit. In cases of unfortunate demise of the policyholder, the sum assured is released to the beneficiary of the policy. 

ULIPS are a great plan for securing financial security and it comes bearing several additional benefits. In this article,we have discussed why investing in a ULIP plan is the smartest choice you can make in the realm of insurance plans.

Reasons Why ULIP Plans are a smart Investment Option

Following are the reasons why investing in ULIP Plans is a prudent choice

  • Partial Withdrawal Option

Partial Withdrawal Option under ULIP makes  it accessible for the policyholder to withdraw money from the policy fund value.

You can withdraw money from your funds to meet any future financial contingency. Partial withdrawals can be made from your funds 

after five complete policy years. Although, some plans require the life assured to be of legal age in order for the amount to be withdrawn.

  • Maturity And Death Benefits 

The maturity benefits offered under a ULIP  plan express that the policyholder will receive the fund value installment regardless of whether the policyholder endures the maturity term. This component of a ULIP plan marks it  different from other plans and guarantees security to the policyholder. The policy ceases to exist after the benefits are paid.

Along with this, the company pays the sum assured  to the nominee as a death benefit.

However, the policy terminates thereafter and no more benefits will be accessible.

  • Better Returns Among Counterparts

This is one more reason why ULIP is the well-suited alternative for long haul abundance creation. When contrasted with different items, ULIPs can possibly acquire great returns as they put the premium paid by you in different assets. It likewise gives you the choice to choose an alternate asset consistently according to its conduct each year.

  • Transparency

ULIP plans are considered straightforward and transparent as compared to other insurance plans. For example, endowment plans lack a bit in the transparency department and curtail some data from the investors. ULIPS, on the other hand, will help you become familiar with your investment funds and the exhibition of your present record. 


ULIPs are a great investment and insurance option. This plan offers more benefits and promises a higher return than its counterparts, thus making it an ideal investment option. The above article will derive you to an understanding of the concept and why investing in a ULIP is a prudent choice for investors.

Also read 

Are ULIPs Better Than Fixed Deposits?

Which Is Better: ULIPs or PPF?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.             

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