Best ULIP Plans in India 2019

A Unit Linked Insurance Plan or ULIP is a market-based product that combines the benefits of both insurance and investment. As per the risk appetite of the policyholder, he/she can invest in leverage funds or equity funds. In this way, this dual benefit plan attracts more and more investors towards it.

Before getting to know the best unit linked plan in India let us understand the type of ULIPs available and the types of funds in which one can invest in ULIP:

Types of Unit Linked Insurance Plans

Classification of ULIP by Purpose:

  • ULIP for Retirement: Under this plan, the policyholder is needed to pay the premium amount during his/her employment. The premium amount is automatically collected as corpus and is used for purchasing the annuity after the retirement of the policyholder.
  • ULIP for the Education of Children: Some ULIPs offer support for the education of children. These ULIPs protect the future of the children of the policyholder against various unforeseen situations so that the children never face any financial crisis at the key events of their life.
  • ULIP to Collect Wealth: Those who want to accumulate wealth over some time should invest in this plan. People who are at their late twenties and early thirties should start investing in this ULIP.
  • ULIP for Benefits of Health: Some ULIPs also give money in the situation of health issues.

Classification of ULIP by Death Benefit:

  • Type One – ULIP Plans: Under ULIP plans of Type – 1 category, the nominee gets the higher of Fund Value or Sum Assured as the death benefit. However, in case of death of insured in the starting years of the plan, when the value of the fund is lower than the sum assured, then the insurance company pays the sum assured to which it was agreed to the nominee of the policyholder. However, when the value of the fund is higher than the sum assured, then it is paid as a death benefit.
  • Type Two – ULIP Plans: The nominee of the policyholder gets the sum of both Sum Assured and Fund Value in case the policyholder dies. Generally, the insurance company charges some extra cost for some added risk under this policy.

Funds Offered by ULIP to Invest

  • Bond and Fixed Interest Funds: These funds provide return time to time. For fixed return funds, the insurance providers invest the money of the policyholder in corporate bonds, debt funds, government securities, etc. The risk factor is slightly high in these funds as they are the combination of unsecured and secured investments.
  • Equity Funds: These funds majorly invest in stocks and equities of companies. Equity funds are one of the riskiest investment funds, but they provide the highest rewards. So, they are recommended to those who have a high-risk appetite.
  • Cash Funds: Cash funds are one of the safest types of investment funds. The other name of cash funds is money market funds as by these funds a policyholder upon maturity gets a set amount of return. They are considered as low-risk category funds.
  • Balanced Funds: The most prudent and stable type of fund investment is balanced funds. With the premiums, the insurance company invests in various fixed components such as stock market and corporate funds. They come in the medium-risk category.

Best ULIP Plans in India in 2019

Some of the best Unit Linked Insurance Plans in India are as follows:

  1. HDFC Life Pro Growth Plus: A simple insurance –cum – savings plan that helps the policyholder to enjoy the life insurance cover with investment strategies. The eligibility criteria to purchase this plan is:
Entry Age 14 years to 64 years
Premium Allocation Charges 25% of the Annual Premium
Minimum Premium Rs.2500 to Rs.10, 000
Number of Free Switches in One Year Unlimited
  1. Bajaj Allianz Future Gain: A Unit Linked Plan that provides an opportunity to get maximum benefit at the least cost. The eligibility for this plan is as follows:
Entry Age One year to 60 years
Premium Allocation Charges 0% to 1.5%
Minimum Premium Rs.25, 000
Policy Admin Charges Rs.100/ month
Number of Free Switches in One Year Unlimited
  1. Aegon Life iMaximize Secure Plan: This is a non-participating unit-linked plan offered by Aegon Life Insurance Company. This plan provides dual benefits of insurance coverage with wealth maximization. The eligibility criteria for this plan is as follows:
Entry Age Seven years to 55 years
Premium Allocation Charges Nil
Minimum Premium Rs.24, 000 to Rs.36, 000
Number of Free Switches in One Year 4
Policy Admin Charges Rs.100/ month
  1. Max Life Fast Track Growth Fund: A Unit Linked plan of Max Life Insurance Company that offers dual benefits of life insurance and capital accumulation through returns of market-linked. The eligibility criteria to purchase this plan is:
Entry Age Eighteen years to 50 years
Premium Allocation Charges 2% for Single Premium and 4% for Annual Premium
Minimum Premium Rupees 25000 to Rupees 1, 00, 000
Number of Free Switches in One Year 12
Policy Admin Charges Rs.1, 500/ year
  1. PNB MetLife Smart Platinum: One of the best Unit Linked Insurance Plan in India that provides 6 different fund options to build an investment portfolio. The plan covers its investors until 99 years. The eligibility to purchase is as follows:
Entry Age Seven years to 70 years
Premium Allocation Charges 1.25%/ annum
Minimum Premium Rs.30, 000 to Rs.60, 000
Number of Free Switches in One Year Four
Policy Admin Charges Rs.40
  1. SBI Life Wealth Assure: It is a non-participating unit-linked plan that saves money by participating in capital markets. The eligibility criteria to purchase this plan is:
Entry Age Eight years to 65 years
Premium Allocation Charges 3% for Single Premium
Minimum Premium Rs.50, 000
Number of Free Switches in One Year Two
Policy Admin Charges Rs.45/ month
  1. ICICI Pru Wealth Builder II: A plan that provides life cover with wealth growth in the long term. The eligibility criteria for this plan are:
Entry Age 0 years to 69 years
Premium Allocation Charges 3%  to 4%
Minimum Premium Rs.24, 000 to Rs.48, 000
Number of Free Switches in One Year NA
Policy Admin Charges Rs.500/ month
  1. SBI Life – eWealth Insurance: One of the best Unit Linked Insurance Plan in India that helps its policyholders to grow their wealth. The eligibility criteria for the same is:
Entry Age 18 years to 50 years
Premium Allocation Charges No Charges
Minimum Premium Rs.10, 000 to No Limit
Number of Free Switches in One Year NA
Policy Admin Charges NA
  1. LIC Market Plus – I Growth Fund: In this plan of LIC one can opt for with or without life cover. The eligibility criteria to purchase this plan is:
Entry Age 18 years to 65 years
Premium Allocation Charges 3.3%
Minimum Premium Rs.5, 000 to Rs.30, 000
Number of Free Switches in One Year Four
Policy Admin Charges Rs.60/ month
  1. TATA AIA Life Invest Assure II – Balanced Fund: This Unit Linked plan helps its policyholder to achieve his/her financial goal. The eligibility criteria for the same is:
Entry Age 4 years to 55 years
Premium Allocation Charges 5% Annual Premium
Minimum Premium Rs.75, 000 to Rs.1, 20, 000
Number of Free Switches in One Year 12
Policy Admin Charges 0.25% of the Annual Premium

Final Words: The above mentioned are top 10 unit-linked plans wherein one can invest and accumulate his/her corpus. To select the best out of this 10, one should understand his/her criteria and this is the reason the eligibility of each plan is provided here.

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