Best ULIP To Buy In 2024
Updated On Jan 11, 2024
Besides wealth creation, providing financial security is also a part and parcel of unit-linked insurance plans. In 1971, ULIPs were introduced by the Unit Trust of India and since then they have been acknowledged by the insurance market in India. Most of the prominent insurance companies, including SBI Life, Tata AIA, Max Life, and many others, are offering this investment plus life insurance plan. In this article, we’ll introduce you to the top ULIP plans that you can purchase in 2024. However, first, let’s understand the meaning in detail!
What Is ULIP Investment?
Among a variety of insurance policies available, a unit-linked insurance plan (ULIP) is a unique investment tool that serves as both an insurance policy and an investment instrument. When you invest in a ULIP, a portion of your premium is allocated for the insurance cover while the remaining is invested in either equity or debt, depending on your choice of funds.
ULIP Policy plans are transparent and versatile. Therefore, you can tailor your ULIP plans according to your unique needs.
Top 10 ULIP Plans in India 2024
Here’s the list of top unit-linked investment plans offered by the best life insurance companies in India.
|
Company name |
Plan Name |
Entry age |
|
Life Insurance Corporation India |
LIC Endowment Plus |
90 Days – 50 Years |
|
HDFC Life Insurance |
HDFC Life ProGrowth Plus |
14 – 16 Years |
|
SBI Life Insurance |
SBI Life Smart Wealth Assure |
8 – 60 Years |
|
ICICI Life Insurance |
ICICI Pru Signature |
0/30 Days – 60 Years |
|
BajajAllianz Life Insurance |
Bajaj Allianz Future Gain |
1 – 60 Years |
|
Aditya Birla Sun Life Insurance |
Aditya Birla Sun Life Fortune Elite Plan |
1 Month – 55 Years (for five pay) - Up to 65 Years |
|
Max Life Insurance |
Max Life Platinum Wealth Plan |
91 Days – 60 Years |
|
Bajaj Allianz Insurance |
Bajaj Allianz Fortune Gain |
1 Year – 63 Years |
|
ICICI Prudential Insurance |
ICICI Wealth Builder |
0 Years – 69 Years |
Best ULIP Plans of India in 2024
Following is an overview of some of the Best ULIP in India
1. LIC Endowment Plus
The LIC New Endowment Plus Plan is a fantastic blend of safety and savings. As a unit-linked policy, it combines investment and insurance for its entire term. Notably, policyholders have four investment options, ensuring they can tailor their choices based on their needs.
Key Features
- Four unique investment types to align with policyholder preferences.
- The ability to choose a fund category post-payment of the premium.
- Premium allocation fees are deducted prior to fund allocation.
2. HDFC Life ProGrowth Plus
HDFC Life ProGrowth Plus stands as a unit-linked insurance policy with regular premium payment options. After subtracting allocation charges, your chosen premium is invested in your selected fund(s). With its investments in the stock market, it promises both insurance benefits and potentially great returns.
Key Features
- Option to select investment funds and specify the regular premium.
- Post-policy term, the total accumulated value of the fund is received.
- Offers the dual advantage of stock market returns and insurance coverage.
3. HDFC Life Click 2 Wealth
HDFC Life Click 2 Wealth provides that essential financial cushion in our fast-moving world. This unit-linked plan ensures both the policyholder and their family's financial security. It also offers varied plan options catering to different needs.
Key Features
- Three distinct plan options: Invest Plus, Premium Waiver, and Golden Years Benefit.
- The Golden Years Benefit option extends life insurance coverage until 99 years of age.
- Ensures solid returns while also building a robust financial backup.
4. SBI Life Smart Wealth Assure
SBI Life Smart Wealth Assure is designed to amplify savings through capital market participation. By paying the premium just once, policyholders can reap the plan's benefits throughout its term. With a choice between two funds, it promises market-linked benefits.
Key Features
- Single premium payment ensures continued policy benefits.
- Offers a choice between the Equity Fund and the Bond Fund.
- The plan includes partial withdrawal options and the possibility of adding an Accidental Death Benefit.
5. ICICI Pru Signature
The ICICI Pru Life Signature is a unit-linked plan focusing on savings and security. Alongside offering insurance to the family in the policyholder's absence, it provides multiple investment options. It's tailored to assist in achieving diverse life goals.
Key Features
- Offers a choice among four distinct portfolio strategies.
- Wide range of fund options across equity, debt, and balanced funds.
- A systematic Withdrawal Plan is included, allowing for regular cash withdrawals to cater to varying life objectives.
Note: This is a suggestive list of the best ULIP plans available in 2024. You can compare a variety of other options on the official website of InsuranceDekho.
Conclusion
ULIPs are the best life insurance products offered by many leading insurance companies. This unique product of life insurance plans is the best tool for both savings and investment. Therefore, they have become a popular choice for people who are looking for an additional source of income.
FAQs
Q. What is a ULIP?
A. Unit Linked Insurance Plan combines insurance and investment. Part of your premium offers life coverage, and the remainder is invested in your chosen funds, like equity or debt, based on the market's performance.
Q. How are ULIPs different from traditional insurance?
A. Traditional insurance plans focus primarily on life coverage. ULIPs, on the other hand, blend insurance with investment opportunities. They provide a platform for potential wealth growth alongside the protective umbrella of insurance.
Q. What benefits do ULIPs offer?
A. ULIPs come with flexibility. You can choose where your premium gets invested, be it equity, debt, or a mix. They often offer tax benefits. Plus, there's potential for higher returns compared to traditional insurance, depending on market performance.
Q. Are ULIP investments risky?
A. The risk in ULIPs is tied to the type of funds chosen. Equity funds are higher risk but can offer greater returns. Debt funds are generally more stable but may offer modest returns. You can adjust your investment preference based on your risk tolerance.
Q. Can I switch my investment preference to ULIPs?
A. Yes, ULIPs typically allow switches between funds. For instance, you can switch to a debt fund if you're initially in an equity fund but later want less risk. Providers usually offer a set number of free switches annually.
Q. How can I withdraw from a ULIP?
A. Most ULIPs come with a lock-in period, often 5 years. After this, you can make partial withdrawals. However, it's essential to consider the potential impact on your returns and coverage before withdrawing. Also, talk to your insurance provider to know what can be done.
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