Unlock Financial Tools, Investment Insights, And Expert Guidance – All In One Convenient App !
Visit Our ABCD PageHealth Insurance
Housing Finance
Life Insurance
Mutual Funds
Personal Insurance
SME Finance
Stock & Securities
ULIPs provide flexibility, transparency, and tax benefits*, making them an attractive option for those seeking long-term financial security and investment opportunities.
Note: In this policy, the investment risk in investment portfolio is borne by the policyholder. The linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender/withdraw the monies invested in Linked Insurance Products completely or partially till the end of the fifth year from inception.
Before you start investing in ULIPs, ensure you qualify and have the necessary documents.
Pick a plan that fits your needs
Share the required personal details
Select sum assured, riders, payment cycle, etc.
Go through the coverage and exclusions
Complete payment and submit documents
Go through the coverage and exclusions
Complete payment and submit documents
As per the Income Tax Act, 1961
How to claim
Hear from our customers what they have to say about their experience.
Secure yourself and your loved ones financially with life insurance. Buy online through the ABCD app and get instant coverage.
Scan the QR code to download our Mobile App
If you are looking to grow your wealth while ensuring a secure future for your loved ones, this could be for you.
ULIP tends to work better when given a long investment period which makes it good for retirement planning and other long-term goals.
Being market-linked, ULIPs carry a level of risk. If you are okay with that, you can consider investing in it to grow your wealth.
You can invest in equity, debt or both through ULIP so if you are looking to diversify your investment, ULIP can be a great place.
Consider your financial objectives, such as wealth accumulation, retirement planning, or funding education.
Assess your risk tolerance and comfort with market fluctuations as they dictate the performance of the fund.
Ensure the coverage provided is adequate for your needs such as children’s education and family’s daily expenses.
Make sure you can stay invested for long as ULIPs are designed to perform better with time.
Consider the type of fund you want to invest in depending on the risk, duration, and asset class.
It allows partial withdrawals once the lock-in period is over, enabling the policyholder to address financial emergencies.
It offers benefits by wealth accumulation and tax advantages*, while also giving life insurance coverage.
It helps you develop good financial habits by making you pay premiums regularly.
It pays the basic fund value as well as the top-up value to your family if you pass away during the policy term.
It pays the total fund value as well as the top-up value to you if you survive the policy period.
It allows you to surrender your policy at any time and get your fund value after certain deductions.
The premiums paid for ULIPs are eligible for tax deductions up to ₹1,50,000 under Section 80C.
The maturity amount received if you survive the policy term is also tax-exempt in certain cases.
The payout to your family on your demise is tax-free under Section 10(10D)**
Withdrawals less than 20% of the fund value after the lock-in period are tax-free.
You can select the premium and coverage that is right for you.
You can select between different fund classes - debts, equity or both.
You can enhance the coverage with riders at a small additional cost.
You can switch between funds anytime to realign your investments.
It invests primarily in stocks for potential high returns.
It invests in fixed-income securities for stability.
It invests in balance stocks and bonds for moderate risk.
It invests in low-risk, easily redeemable assets.
It holds funds in cash equivalents for short-term goals.
Select the period for which you plan to invest in the ULIP.
Enter the initial amount you'll invest or annual premiums.
Choose the ULIP's fund type such as equity, debt, balanced etc.
Estimate the expected annual return based on your fund choice.
ULIP, or 'Unit Linked Insurance Plan' is a market-linked insurance plan that offers both life insurance and investment opportunities. A part of the premium is used to pay a lump sum of money to your beneficiaries in case of your untimely demise during the term of the policy, and the remaining part of the premium is invested in a variety of funds, such as equity funds, debt funds, or a combination of both. You will receive the fund value when the policy matures.
Here’s a complete picture of how a ULIP works:
1. Premium payment: The policyholder pays a regular premium to the ULIP plan.
2. Fund allocation: A portion of the premium is allocated towards life insurance coverage, and the rest is invested in funds of the policyholder's choice, such as equity, debt, or a mix of both.
3. Fund performance: The performance of the funds depends on market conditions and the underlying assets.
4. Charges: ULIPs have charges such as premium allocation charges, mortality charges, fund management charges, and surrender charges.
5. Life insurance coverage: ULIPs offer life insurance coverage, providing financial security to the policyholder's family in case of their death.
6. Investment options: ULIPs offer various investment options, such as equity funds, debt funds, balanced funds, and others. The policyholder can choose the type of fund based on their risk appetite and financial goals.
7. Flexibility: Policyholders can choose the type of funds they want to invest in based on their risk appetite and financial goals. Additionally, policyholders can switch between funds according to market conditions or their financial objectives.
8. Lock-in period: ULIPs have a lock-in period of five years, which means the policyholder cannot withdraw the funds before the end of the lock-in period.
9. Partial withdrawals: Policyholders can make partial withdrawals after the completion of the lock-in period to meet any financial emergencies.
Like any other insurance plan, purchasing a ULIP comes with a few charges. They are as follows:
• Premium allocation charges: A one-time charge deducted from the premium to cover policy issuance and administration costs.
• Mortality charges: The cost of life insurance coverage deducted from the premium based on the policyholder's age, health, and life expectancy.
• Fund management charges: The cost of managing the funds invested in the ULIP plan is deducted from the fund value as a percentage of the total assets under management.
• Policy administration charges: The cost of administering the policy is deducted from the premium.
• Surrender charges: A deduction from the fund value if the policyholder surrenders the ULIP plan before the end of the lock-in period. Surrender charges are typically high in the initial years of the policy and reduce over time.
• Switching charges: A charge levied when the policyholder switches between funds.
Aditya Birla Capital (ABSLI) currently offers nine ULIPs:
• ABSLI Fortune Wealth Plan: 2 plan options with Guaranteed Additions. 5 investment options and a choice of 18 funds
• ABSLI Platinum Gain Plan: 3 premium bands + flexibility to pick from 5 different investment strategies and 18 fund options. Wealth Boosters + Loyalty Additions
• ABSLI Smart Growth Plan: 5 investment strategies and 16 funds + Flexibility for fund switching + Wealth boosters and loyalty additions + Return of mortality charges at maturity
• ABSLI Wealth Aspire Plan: 2 plans and 4 investment options + Flexibility for partial withdrawals + Guaranteed additions + Flexibility to add top-ups
• ABSLI Wealth Secure Plan: 3 investment options + Guaranteed additions + Flexibility to add top-ups + Surrender Benefits
• ABSLI Wealth Assure Plus: 5 investment strategies and 16 funds + Premium waiver on critical illness + Guaranteed additions + Custom benefits with riders
• ABSLI Fortune Elite Plan: Flexible premium paying terms + Partial withdrawal benefits + Guaranteed additions + Maturity benefits
• ABSLI Wealth Max Plan: Invest once and get benefits for the full policy term + Guaranteed additions + Top-up options + 16 funds under the self-managed option
• ABSLI Wealth Infinia: Return of mortality and premium allocation charges + Systematic withdrawal facility + Wealth boosters and loyalty additions + 5 investment strategies and 16 funds
ULIP is a great investment option for someone looking for protection and wealth creation in one plan. Here are some of its most popular features and benefits:
• Dual benefits: ULIPs offer both life insurance coverage and investment opportunities. This means that you can get financial protection for your loved ones and grow your wealth at the same time.
• Flexibility: ULIPs offer flexible investment options. You can choose the type of funds to invest in based on your risk appetite and financial goals. You can also switch between funds as needed.
• Wealth creation: ULIPs have the potential to provide higher returns than traditional insurance products due to their investment component. This makes them a good option for individuals who want to grow their wealth in the long term.
• Transparency: ULIPs offer transparency in terms of their investment performance, charges, and fees. This helps you make informed investment decisions.
• Financial discipline: ULIPs encourage financial discipline as you need to pay regular premiums towards the policy. This can help you develop the habit of saving and investing.
• Tax benefits*: ULIPs offer tax benefits* under the Income Tax Act of India. You can get a tax deduction on the premiums you pay, and the maturity or death benefit you receive is also tax-free.
Yes, partial withdrawal is generally allowed in ULIPs after the completion of the lock-in period, which is typically five years. You can withdraw a portion of the accumulated fund value while keeping the policy active. The specific rules, limits, and conditions for partial withdrawals may vary depending on the plan and the terms of the policy.
It's important to note that partial withdrawals can impact the future growth of the investment and the overall policy value. Additionally, there may be a minimum and maximum limit on the amount that can be withdrawn, and some ULIPs may impose charges or fees for partial withdrawals. You should carefully review the terms and conditions of your ULIP policy and consult with the insurance provider or advisor before making a partial withdrawal to ensure you understand the implications and available options.
In ULIPs, fund switching is a feature that allows you to reallocate your investments among different available funds according to your changing financial goals and risk tolerance. To initiate a fund switch, you simply need to inform your insurance provider or access the policy's online portal. You can choose the specific funds to which you want to transfer your investments, and the provider will facilitate the switch. This flexibility enables you to adapt your ULIP portfolio to match evolving market conditions and your investment preferences over time, helping you make the most of your investment in alignment with your financial objectives.
You can make a claim for your ULIP in the following 7 steps:
Step 1 - Gather the required documents: This includes your policy document, death certificate (for the death benefit claim), proof of identity, proof of age, proof of address, and bank account details (for electronic fund transfers).
Step 2 - Contact us: You can reach us by phone, email, through our website, or by visiting a branch office, and inform us if you want to file a claim.
Step 3 - Get the claim forms: We will provide you with the claim forms that you need to fill out. We can either send the physical form via post, or you can download it from our website, or collect it from a branch office.
Step 4 - Complete the claim forms: Be sure to fill out the forms accurately and completely. Include all of the required information, such as your policy number, personal details, etc.
Step 5 - Submit the claim forms and documents: You can submit your claim forms and necessary documents by post, email, through our website, or at a branch office.
Step 6 - Track your claim: Once you submit your claim, you can track its status through our website or by contacting our customer support. Be prepared to provide additional information or documents if requested.
Step 7 - Receive your benefits: Once your claim is approved, your payout will be processed according to your chosen option.
ULIP riders are additional benefits that can be added to the base ULIP for a nominal additional cost. Some common ULIP riders are:
• ABSLI Accidental Death Benefit Rider Plus: Provides 100% of the rider sum assured as an additional lump sum amount in case of death due to an accident of life insured.
• ABSLI Waiver of Premium Rider: Waives off all future premiums of the base plan and the attached riders throughout the rest of the premium payment in case of a diagnosis of 4 specified major illnesses, disability, or death.
For further details regarding the above-mentioned riders, please refer to the respective rider brochure(s) available on our website.
ULIPs are best suited for investors with a medium- to high-risk appetite and a long investment horizon. This is because ULIPs invest a portion of the premium in equity funds, which have the potential to generate higher returns over the long term. However, equity funds are also more volatile than debt funds, so investors should be comfortable with risk before investing in a ULIP.
ULIPs are also a good option for investors who are looking for both insurance and investment. ULIPs offer life insurance coverage, which can protect your loved ones financially in case of your untimely demise. Additionally, ULIPs offer tax benefits* under the Income Tax Act of India.
To maximise ULIP returns, policyholders should choose a balanced portfolio of funds that includes both equity and debt funds. Additionally, regular monitoring of the portfolio and diversification can help maximise returns from ULIPs in India.
Even though ULIP returns are subject to tax based on the policyholder's income tax slab, the maturity or death benefit received under the ULIP is tax-free under Section 10(10D)** of the Income Tax Act.
Yes. According to Section 80(C) of the Income Tax Act 1961, you can get tax deductions for premiums paid on ULIP plans, with a limit of either the actual paid amount or ₹1.5 lakh, whichever is lower. Additionally, if you've included a critical illness rider, you can also claim deductions under Section 80(D).
Yes, if the premium that you pay towards ULIPS exceeds ₹ 2.5 lakh, then the returns that you get will be taxed. The rate of tax will depend on your ULIP composition.
Yes, you can choose to cancel your ULIP within the five-year lock-in period.
SIPs and ULIPs differ significantly. SIPs don’t give you life coverage, whereas ULIPs provide it. Similar to mutual funds, ULIPs allocate a portion of your investments to various funds, aiming for higher returns. The remaining premium serves as life insurance coverage.
Some of the most common myths around ULIP are as follows
- ULIPs are costly
- ULIPs are risky
- ULIPs are not flexible
- ULIPs give low returns
- Your life cover could be reduced in ULIPs