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IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER.

Unit Linked Insurance Plan (ULIP)

Q: 9. What are the risks associated with a ULIP plan?

Your ULIP performance depends on the funds you have invested and their market performance. Hence, a ULIP investor may have to deal with market risks and fluctuations.

There are several types of life insurance plans you can choose from based on your financial goals and convenience. Some plans offer only a life cover while some come with investment cum insurance components. Read more

ULIP, short for a Unit Linked Insurance Plan is one such insurance cum investment plans. The plan allows you to invest for your long-term financial goals, while also providing the protection of a life cover. Read further to understand the various aspects of a ULIP policy. Read less

IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICY HOLDER.
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Written ByShruti Gujarathi

AboutShruti Gujarathi

Shruti Gujarathi has 5 years of experience in the BFSI sector, and as Manager- Digital Marketing at Bajaj Allianz Life Insurance, manages digital and content marketing. She has had hands-on experience in content strategy, performance marketing and Strategic Alliances over a career spanning 10 years.

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Rosy Pathak, AVP- Product and Brand Marketing at Bajaj Allianz Life Insurance carries over 17 years of experience in Marketing and a demonstrated history of working in the insurance industry. She is skilled in Product Management, Planning and Strategy, Project Management, Marketing and Communication.

What Is A ULIP?
How ULIP Works?
Why Should One Consider?
ULIP Plans By Bajaj
Steps
For Whom It Suits?
How To Choose?
Features
Benefits
Why Monitoring Is Crucial?
Charges
What Is NAV?
Myths
Why Bajaj ?
FAQs

What is a ULIP (Unit Linked Insurance Plan)?

The meaning of ULIP is quite simple: it is a market-linked plan wherein one can avail life insurance coverage and also invest in different funds. Similar to other types of life insurance, you are required to pay premiums for your ULIP. This ULIP premium may be invested in funds of your choice and also be directed towards building the life cover. When your plan matures, you get the fund value consisting of the amount you invested along with the returns you earned on it. In case of your unfortunate demise, your nominee may receive the death benefits of the plan.

How ULIP Works?

Here's how it works in detail:

The premium you pay is used to meet two key financial goals, life insurance and investment.
Your money is invested in market-linked funds that you get to choose. The total amount invested may be divided into units, with each having a specific face value.
The value of each unit is referred to as the NAV. It can reflect any increase or decrease in the value of the underlying assets.
If you make partial withdrawals from the accumulated corpus, the corresponding number of units are sold.
At the time of maturity, you may receive the total fund value .
In case of your demise within the policy tenure, your nominee can receive the death benefit which may be the sum assured amount or the total fund value of the plan, basis the type of plan.

Why Should One Consider Investing in ULIPs?

A ULIP plan can offer a multitude of benefits. Here are some reasons why you may want to invest in a ULIP:

Market-linked Returns

ULIPs provide market-linked returns. The longer you stay invested, the probability of earning expected returns is high too, subject to market performance.

Multiple Investment Options

A ULIP investment portfolio offers a variety of fund options for investors to opt for. They may range from aggressive funds primarily investing in equity to conservative funds investing in the debt market or a combination of the two.

Flexibility

ULIPs provide the flexibility to switch between different funds based on changing scenarios and risk appetite. This feature can allow investors to capitalize on investment opportunities and manage their investment portfolio effectively.

Tax Benefits

There are several tax benefits of a ULIP that you may benefit from. Its premiums are subjected to deductions as per Section 80C of the Income Tax Act, 1961.^[1] The death benefit amount may also be tax-free as per Section 10(10D) of the Income Tax Act, 1961.^[1]

Liquidity

In the case of emergencies or unfortunate events, you may use the partial withdrawal feature of your ULIP plan to meet your fund requirements.

Why Invest In ULIP

ULIP Plans By Bajaj Allianz Life

Steps for Buying A ULIP Online

After knowing the benefits of ULIP, you may consider buying one online through a straightforward process. Follow these steps to acquire a ULIP-based product online seamlessly:

Go to the official website of the insurer offering ULIP products.
Browse through the available ULIP products and select the one aligning with your financial goals and risk appetite.
Determine the desired policy duration and select the premium payment amount suiting your budget and financial objectives.
Once you have made your selection, proceed to the payment section of the website.
Choose your preferred modes of payment, such as net banking, credit card, debit card, or online wallet.
Make the payment using your selected payment method and confirm the purchase.
After the successful payment, you may enjoy the advantages and benefits of your newly acquired Unit Linked Insurance Plan.

By following these steps, you may conveniently purchase a ULIP online, saving time and ensuring a hassle-free experience. You can also use a ULIP calculator to get an estimate of your investment needs.

For whom is a ULIP Investment Suitable For?

ULIPs can be an investment option for many, depending on their financial goals and risk appetite. Here are several types of people who may benefit from investing in a ULIP –

People with Varying Risk Appetites

An investment in a ULIP may offer a broad range of market-linked investment funds, ranging from equity to debt funds. Thus, it caters to investors with different risk appetites. Investors seeking higher returns, who may be comfortable with higher risks, may choose to go for equity-oriented funds. On the other hand, risk-averse investors may opt for debt funds or balanced funds offering more stability.

People with a Long-Term Investment Horizon

The returns of a ULIP may be optimal for people with a long-term horizon. Over time, the plan may deliver good returns on investment, subject to market volatility.

Hands-On Investors

ULIPs may be suitable for investors wanting to play an active role in their investments. With transparency and the option to modify the fund allocation, investors can manage their investment with features like fund switching or premium redirection to modify their fund allocation and potentially get their desired returns.

Investors Across Life Stages

An investment in a ULIP may be customised to cater to people in different life stages with varying needs. Regardless of your age, you may have certain life goals and dreams that you may hope to achieve like retirement, securing your child’s financial future, wealth creation, etc. A ULIP may help you save money required to achieve these life goals.

How to Choose A ULIP?

Understanding what a ULIP is may drive you to invest in one. There are different types of ULIP plans options you may choose from based on your needs and financial goals. Here are some suggestions that can help narrow your choices:

Analyse your personal goals

Before choosing a plan, it may be essential for every investor to analyse their personal goals. You can invest in ULIPs keeping your personal goal in mind, like buying a house or planning for retirement.
Align your plan with your investment goals

Before buying a ULIP policy, keep your investment goals clearly defined. For example, if you want to have a major stake in high-risk investments, you can think of investing in equity ULIPs.
Compare ULIPs

You may compare the different features and advantages offered by each ULIP to determine the one that suits your specific needs. This may help you get the optimum maturity or death benefits.
Take Advantage of ULIP Flexibility

ULIPs may offer investors a range of investment options and tenures to choose from depending on their risk appetite and financial goals. You may choose the suitable funds and tenure accordingly.
Analyse Features and Benefits of ULIPs

Every ULIP has unique features and benefits. Having a proper understanding of their pros and cons and comparing their features may help you select a ULIP plan of your choice.
Check the Solvency Ratio

An insurance company’s solvency ratio may showcase whether it may be able to honour its claims in the future or not. An insurance company must have a solvency ratio of at least 150% as mandated by IRDAI.
Check the Claim Settlement Ratio (CSR)

The percentage of the total death related claims settled against the death claims received by an insurance company in a financial year is termed as CSR. A high CSR may indicate the insurer's reliability in settling claims.
Pick an Investment Strategy

Some ULIP plans have a focused goal that serves particular needs of the investors. For instance, a ULIP for retirement may focus on creating wealth for post-retirement needs. Going with a particular investment strategy may help investors generate regular income and fund future goals.

Features of ULIPs

A ULIP may come with several distinct features that set them apart from other types of life insurance plans, such as:

Dual Benefits: Investment and Insurance in One

The primary purpose of a ULIP policy is to provide comprehensive life insurance coverage while also enabling optimal wealth appreciation. The latter may be done through investments in different market-linked instruments and the returns they earn. This unique feature may ensure that policyholders enjoy the benefits of both investment and insurance in a single plan.

ULIP Fund Switching: Flexibility in Managing Your Returns

One of the significant benefits of ULIP may be the fund switching feature, which enables policyholders to move their money from one market-linked fund to another within the same plan. This feature may allow policyholders to manage their returns effectively by choosing funds that align with their financial goals and risk tolerance capacity.

Partial Withdrawals: Meeting Liquidity Needs

Unlike traditional life insurance plans, ULIP plans offer a partial withdrawal feature that may allow policyholders to withdraw a portion of their investments as needed. However, this feature may only be available after the mandatory lock-in period of five years has ended. Policyholders may withdraw money as per their liquidity needs while ensuring that their policy remains active.There may be certain limits on the amount of money one may withdraw.

Top-Up Investments: Increasing Your Investment Amount

A ULIP scheme offer a top-up feature that may allow policyholders to increase their investment amount each year. This feature may enable policyholders to keep pace with their growing life goals and invest more money in the market-linked funds of their choice.

ULIP Lock-in Period: Building the Habit of Consistent Investing

ULIPs have a lock-in period of five years, during which policyholders may not be able to withdraw their investment amount. This period may allow policyholders to build a habit of investing consistently. With regular investments, the policyholder may amass a considerable corpus in the long run. It may also ensure that the ULIP charges may be distributed equitably over the lock-in period.

Benefits of ULIP

A ULIP may offer a host of benefits that go beyond traditional insurance or investment plans. They may include:

Maturity Benefit: Unlocking Your Accumulated Fund Value

Upon reaching the maturity of your ULIP plan, a rewarding benefit may await. You may become eligible to receive an amount equal to the accumulated fund value, serving as a maturity or survival benefit. This may ensure your investment grows over time and rewards your commitment. In case you pass away unfortunately, the maturity benefit may be passed down to your beneficiaries. Depending on the policy, they may receive either the sum assured or the fund value, depending upon the type of ULIP.
Death Benefit: Protection for Your Loved Ones

In the unfortunate event of an untimely demise during the ULIP policy tenure, your family may receive the ULIP death benefit. This financial support, paid out according to the policy's terms and conditions, may ensure that your loved ones are safeguarded in challenging times. It may also be noted that, regardless of the changes in the investment amount and fund structure, the death benefit stays unaffected. It may be considered as the base of any life insurance plan and likely stays fixed through the tenure.
Asset Allocation: Empowering You with Choice

Unit Linked Insurance Plans can provide a unique advantage through asset allocation. This strategy may allow you to allocate your capital across different ULIP funds offered under your policy. By investing in equity funds, debt funds, or a balanced mix of the two, you may align your investments with your risk appetite, market ups and downs, and financial goals. This flexibility may empower you to navigate the market and potentially optimise your returns.
Wealth Generation: Harnessing Market-Linked Growth

A ULIP investment may offer the potential for market-linked wealth generation over the longer term. Short-term market volatility may exist. However, if one looks at it historically, investment in market-linked funds may have favourable performance if one holds it over extended periods. By harnessing this growth potential, ULIPs may contribute to building wealth and achieving your long-term financial aspirations.
Tax Benefits^[1]

ULIPs not only provide you with the opportunity to grow your wealth and protect your loved ones but may also offer significant tax advantages. Here are several ULIP tax benefits:
Stage 1: Entry Benefits - Avail Deductions on Premiums

The premiums you pay towards your ULIP may be eligible for deduction from your taxable income, as per Section 80C of the Income Tax Act, 1961. You may claim a deduction of up to Rs.1.5 lakhs, subject to the provisions mentioned in the Act.
Stage 2: Earnings Benefits - Tax-Free Growth

As your ULIP investments appreciate over time, the earnings or gains may not be taxable as long as you keep the funds invested. This means you may enjoy tax-free growth on your ULIP investments until you decide to withdraw or redeem them.
Stage 3: Exit Advantage - Tax Treatment at Maturity and Demise

The death benefit amount your nominee may receive may be tax-free as per Section 10(10D) of the Income Tax Act, 1961. For you to get tax exemption on maturity, the premium of the ULIP purchased after 1st April 2012 should not exceed 10% of the death sum assured. If the ULIP is purchased before 1st April 2012, the premium should not exceed 20% of the sum assured. Also, as per the 2021 budget, if the total aggregate annual premiums of ULIP purchased on or after 1st February 2021 is above Rs 2.5 lakhs, the maturity proceeds cannot be tax-exempted. Any returns you may receive from equity funds above Rs 1 lakh may be taxable as per the Long-Term Capital Gains (LTCG) tax rate of 10%. In the case of non-equity assets, returns above Rs 1 lakh may be taxed at a 20% rate.

Advantages Of ULIP

Why Monitoring Your ULIP Fund Performance is Crucial?

Keeping a close watch on the performance may be vital to regularly monitor and evaluate the performance of your ULIP funds. It may also be essential for the following reasons:

Managing Risks

With a ULIP plan, you have to bear market-related risks associated with your investments. Monitoring the performance of your ULIP funds may enable you to gauge whether the risks may be within your tolerance levels. By being well-aware, you may make informed decisions to mitigate potential risks.
Switching Funds

ULIPs may provide the flexibility to switch between different funds based on changing market conditions and your evolving life goals. By actively monitoring your ULIP performance, you can gain insights into when it might be appropriate to switch funds. This may empower you to align your investment strategy with your financial objectives effectively.
Achieving Long-term Goals

Regularly assessing your ULIP performance allows you to track your progress toward your long-term financial goals. By ensuring that your investment remains on track, you may avoid falling behind in achieving your life goals. If there may be any discrepancy with the fund and your goals, you may want to take some steps to align them again.
Checking Fund Performance

If you have invested in a ULIP plan from Bajaj Allianz Life Insurance Company, you can check your ULIP fund performance on our website. This may help you get a clearer idea of where your funds may be going and what you may do to improve them if needed.

ULIP Charges

Familiarising yourself with the ULIP charges levied to cover expenses and risks may be crucial. It may give you a better understanding of when and why they are levied, enabling you to make an informed decision. Here is a list of major ULIP charges:

Charge Type	Description
Fund Management Charges	The money you invest in a ULIP is managed by expert fund managers. These professionals can make investment decisions, monitor assets, and may aim to optimise returns. Hence, a fund management charge may be levied by the insurer to provide for this expertise.
Policy Administration Charges	Managing ULIPs involves administrative tasks like paperwork and record keeping. To cover these expenses, insurance providers may deduct policy administration charges from your policy account.
Mortality Charges	ULIPs include a life insurance component, providing a death benefit to the nominee in case of the insured person’s demise during the policy term. To account for this risk, insurance providers may levy mortality charges on ULIP. Some new-age ULIPs, including those offered by Bajaj Allianz Life, feature the Return of Mortality Charges (ROMC) benefit. If the policyholder survives the policy term, the initially levied mortality charges may be returned at maturity, reducing the overall cost of investment.
Premium Allocation Charges	These charges may be deducted upfront as a percentage of the premium. Premium allocation charges may account for the initial expenses incurred by the insurance company when issuing the ULIP, such as underwriting expenses and distributor fees.
Policy Discontinuance Charges	ULIPs typically have a lock-in period of five years. If you decide to surrender your ULIP before this period and discontinue premium payments, the insurance provider may levy policy discontinuance charges. The charges may depend on the year in which you stop paying the premium.
Partial Withdrawal Charges	After the completion of the 5-year lock-in period, ULIPs can allow for partial withdrawals. While some plans may offer unlimited free partial withdrawals, others may have a limit. If you may exceed the permitted number of free withdrawals, additional ULIP charges may be applicable.
Fund Switching Charges	One of the unique features of ULIPs may be the ability to switch your investment partially or completely between funds. This flexibility may allow you to align your portfolio with changing market cycles and risk tolerance. While some insurers may not charge for fund switches, others offer a specified number of free switches per year. If you exceed this limit, you may be subject to fund switching charges based on the policy’s terms and conditions.
Miscellaneous Charges	Under this category, you may encounter additional charges for making changes to your ULIP contract, such as adjusting the premium payment mode. These miscellaneous charges may vary based on the specific alterations you make.

What is NAV in ULIP?

A ULIP NAV is the daily calculated value of units held in a ULIP fund. It may represent the market worth of the units and may help investors track the performance of their investments. By monitoring the ULIP NAV, investors may make informed decisions about their investment strategies. NAV is calculated by dividing the total net assets of the fund by the total number of units outstanding. This formula can help determine the value of each unit in the ULIP fund.

Myths about Investing in ULIPs

There may be several misconceptions surrounding ULIPs that often cloud the judgment of potential investors. We debunk these myths and shed light on the true nature and benefits of the plan for your benefit:

Myth: ULIPs are Complex and Confusing

Contrary to popular belief, ULIPs have been designed to be comprehensible and accessible to investors from diverse backgrounds. Insurance providers are likely to offer transparent information regarding the policy's features, benefits, charges, and investment options. With customer-centric initiatives, ULIPs have evolved over the years and may seem more customer-friendly. This can empower investors to make informed decisions.

Myth: ULIPs Have High Charges

ULIPs may come with certain charges, such as premium allocation charges and fund management charges. However, it is important to evaluate them in the light of the overall cost structure and the value provided by the plan. Over the long term, the impact of charges may reduce significantly, especially when one considers the dual benefits of life insurance coverage and the potential for wealth creation.

Myth: ULIPs Offer Limited Investment Options

Another common misconception is that ULIPs may offer limited investment options. ULIPs provide a wide range of investment choices, including equity funds, debt funds, and a combination of both. These options can cater to varying risk appetites and investment objectives. With the flexibility to switch between funds based on market conditions and personal preferences, ULIPs may offer a dynamic investment platform.

Myth: ULIPs Lack Transparency

Insurance companies provide clear and detailed information about the various charges, investment performance, and policy terms present in a ULIP. Additionally, policyholders may also have access to online portals and tools that enable them to monitor their investment portfolio and track fund performance. This may help them make informed decisions in the long run.

Myth: ULIPs Have Low Returns

Contrary to the belief that ULIPs generate low returns, the performance of ULIPs depends on the underlying funds chosen by the policyholder, and the market performance of these funds. Equity-oriented funds may have the potential to deliver higher returns over the long term, considering the volatility of the equity market. It may be crucial to assess the investment strategy, past performance, and risk factors associated with the chosen funds before investing in a ULIP

99.29%

Claim Settlement Ratio^~

1 Day

Claim Approval^%

AAA

CARE Stable Rating^$

₹1,21,724 Cr

Assets Under Management (AUM)^**

4.07 Cr

Number of Lives Covered^#

359%

Solvency Ratio^{^}

Disclaimer:^~Individual Death Claim Settlement Ratio for FY 2024-2025, ^%96.70% of non-investigative individual claims approved in one working day for FY 2023-24. 1 day is counted from date of intimation of claim before 3 PM on a working day (excluding Non-NAV days for ULIP) at Bajaj Allianz Life offices, ^$For details refer to press release published by CARE, ^**All figures as on 31 March, 2025, ^{^}Solvency ratio 359% as at 31 March 2025 against IRDAI mandated 150%, ^#Individual Group.¹ Source: Bajaj Allianz Life Public Disclosure

Frequently Asked Questions

1. What is the full form of ‘ULIP’?

‘ULIP’ stands for Unit Linked Insurance Plan. It can be considered a unique financial product combining the elements of life insurance and market-linked investments.

2. What Should You Keep in Mind While Investing in a ULIP?

Before investing in a ULIP, you may want to keep in mind the fund options of the plan, the charges levied, the solvency ratio, and the claim settlement ratio of the life insurance provider.

3. Are ULIPs Safe?

Yes, ULIPs are safe. If you are a risk averse individual, you may invest in predominantly low-risk funds like debt funds. Also, you may use premium redirection and fund switching to change your fund allocation for ensuring fund safety.

4. What is the maximum duration of the trial period or free look period of a ULIP?

The trial period or the free look period of a ULIP is typically 15 days from the date of receiving the policy document. In the case of electronic or online ULIPs, the free look period can be 30 days.

5. What is the best way to choose a ULIP?

Choosing a ULIP that fits your needs and requirements perfectly may be crucial to be able to satisfy your goals. You may want to compare several plans and choose an option that has fewer charges and has the fund options of your choice.

6. What is a ULIP NAV?

The Net Asset Value (NAV) of ULIP is the total assets of the fund, after deduction of any liabilities associated with the same. It can be calculated by using the following formula -

NAV of ULIP = [(The total value of your ULIP fund) - (Any liabilities or charges)] / Total number of units

7. Are there single premium ULIPs?

Yes, there are Unit Linked Insurance Plans that offer a single premium feature. You have to pay the entire premium at once, at the time of purchase.

8. What types of payment does Bajaj Allianz Life accept for an online ULIP purchase?

You can purchase a ULIP by paying premiums through different payment modes available, such as net banking, credit cards, debit cards, or online wallets.

9. What are the risks associated with a ULIP plan?

Your ULIP performance depends on the funds you have invested and their market performance. Hence, a ULIP investor may have to deal with market risks and fluctuations.

10. What is the death benefit payable under a ULIP policy?

In case of the demise of the ULIP policyholder, the nominee may receive either the maturity amount or the death benefit of the plan, whichever is higher. This may depend on the type of ULIP chosen by the policyholder.

11. What is the limit for partial withdrawals in ULIPs?

The exact limit of partial withdrawals in a ULIP may vary from one insurer to another, as well as from one policy to another. In most cases, you may not be allowed to withdraw over a particular percentage of the fund value. Discussing the same with your insurer may help.

12. When is the right time to switch your ULIP fund?

A policyholder may switch their ULIP investment at any time they feel right. Usually, policyholders may opt to switch funds if the market moves significantly in a different direction. They may also switch funds if their risk appetite evolves.

13. What is a fund booster in ULIP?

For the uninitiated, a fund booster is a ULIP benefit that may be offered via certain Bajaj Allianz Life insurance products. It can enhance the amount you receive at the time of maturity. It may be considered as an incentive for paying your premiums regularly throughout the policy term and staying invested till the end of the policy.

14. Which investor class is a ULIP more suited for?

A ULIP investment may be suitable for investor classes of all types. An individual may invest in different types of funds ranging from equity funds to debt funds depending on the risk they are willing to take.

15. Which ULIP is suitable?

There may not be any single ideal ULIP policy for all. The suitable plan for you would be the one aligned with your financial goals, investment horizon, your needs, etc.

16. Can I Stop Investing in my ULIP?

Yes, you can stop investing in ULIP anytime you want. However, if you surrender your plan during the lock-in period, the life cover may cease immediately, but the surrender value is paid out only after the 5-year period.

17. Can ULIPs give high returns?

ULIPs can come with the potential to generate high returns, but which may be associated with higher risks as well. You may invest in equity funds if you have a high-risk appetite to potentially earn higher returns.

18. Can I get my premiums back if I am dissatisfied with a ULIP policy?

No, it is not possible to get your premiums back if you are unhappy with your ULIP returns. You can instead choose to switch your fund allocation or redirect your premium to other funds of your choice.

19. Can I invest more than the regular premium for ULIP?

If you want to invest more than the regular premium for your ULIP, you may opt for the top-up feature. It allows you to invest a top-up premium in your policy, over and above the regular premium.

20. Can NRIs Buy ULIPs in India?

Yes, Non-Resident Indians (NRIs) can buy ULIPs in India.

21. What Are Whole Life ULIP plans and Why You Should Get One?

Whole-life ULIP insurance plans provide life cover and maturity benefits until you attain the age of 99 or 100, depending on the plan you choose and the insurer. Whole life insurance can be beneficial for protecting your loved ones financially throughout your life.

22. What happens if payment of ULIP premiums is discontinued?

If you discontinue the premium payment of ULIP after the lock-in period, you may convert the policy to a paid-up one and withdraw the remaining funds of your plan. However, if you stop paying before the lock-in period, your policy will be automatically discontinued.

23. What is the meaning of absolute returns of ULIP?

They are the returns you can earn on your ULIP investment plan. They may be calculated by reducing your current NAV from the initial NAV to know the progress of your investment.

24. What is the difference between online ULIPs and offline ULIPs?

The key points of difference between online and offline ULIPs may be the cost and the mode of purchase. When you buy a ULIP online, there may be no intermediaries or agents involved, and so, the cost might be affordable.

25. Will there be a tax implication at the time of switching for policies purchased before 1 February 2021?

There may be no tax implications for switching funds for a policy bought before 1 February 2021, provided that the conditions under Section 10(10) of the Income Tax Act, 1961 are satisfied. [1]

26. Are death benefits from single premium policies with a premium in excess of Rs. 2,50,000 taxable?

Yes, since the premium payable for a year of the policy exceeds Rs 2,50,000, the ULIP may not qualify for any exemption under section 10(10D) of the Income Tax Act, 1961^[1]

27. In which tax regime can I get tax benefits on ULIP premiums?

You can claim tax benefits on ULIP premiums in the old tax regime under Section 80C of the Income Tax Act, 1961. There may be no benefits of deductions available for ULIP premiums in the new tax regime.^[1]

2. What are the different types of funds under ULIPs?

Unit Linked Insurance Plan allow you to secure the future of your dependants with a life insurance and meet your financial goals through a market linked investment option. When investing in a ULIP, you will be able to choose from the below fund options available^[13]:

Debt Funds : Invests majorly in debt funds, government securities, bonds, and money market instruments.
Equity Funds : Invests mostly in equities and company stocks.
Balanced Funds : Invests in a mix of debts and equities.

3. How does a ULIP differ from traditional plans?

A ULIP differs from traditional plans in terms of its market-linked features. Unlike traditional plans, ULIPs^[14] invest a portion of premiums paid in market-linked funds to earn returns, with no fixed maturity benefit, have a 5-year lock-in period, allow fund switches, and enable policyholders to track their portfolio.

4. What is the difference between Sum Assured and Maturity Benefit in a ULIP?

A sum assured in ULIP^[15] is the life cover or the minimum assured amount payable upon the death of the life assured . The maturity benefit refers to the total return earned on maturity through the investment component of the policy.

5. What returns can I expect from a ULIP?

The returns from a ULIP^[13] are based on the mix of the portfolio chosen by the policyholder. Equities, or high-risk assets, may earn high returns over the long term, while debt funds or other less risky assets can fetch lower returns.

6. Are ULIPs tax-free?

The maturity and death benefits are tax-free in ULIP^[13] under section 10(10D) of the Income Tax Act, 1961 (subject to satisfaction of conditions mentioned therein). Additionally, annual premium payment is also subject to deductions under section 80C (in case of old tax regime).

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If you’re an individual looking to enjoy the benefits of insurance and create market linked wealth over the......

ULIP Calculator

Know the amount to invest today to have the corpus to accomplish your Life Goals tomorrow.

Power of Compounding Calculator

Get an estimate of how much your investment will grow over a period of time.

Income Tax Calculator

Know your income tax based on the taxable income and explore Life Insurance plans to save more tax.

Investment Calculator

Answer a few simple questions to know estimated corpus you will have to fulfil your Life Goals.

Underinsurance Calculator

With the Underinsurance Calculator, check if your Life Cover is atleast 10x of your Annual Income.

Fixed Deposit Calculator

Answer a few easy questions to calculate your Fixed Deposit Returns.

NPS Calculator

Calculate your NPS returns effortlessly with our simple to use NPS Calculator.

SIP Calculator

Plan your investments effortlessly and achieve your financial goals with our easy-to-use SIP Calculator

Retirement Preparedness Score Calculator

Answer a few simple questions to know how prepared you are for your retirement.

Child Education Planning Tool

A simple to use and comprehensive tool to plan for your child's education.

Term Insurance Calculator

An easy to use Term Insurance calculator to determine the right life cover amount as per your needs.

Savings to Life Goals Convertor

Use this calculator to know how savings from regular expenses can help you achieve your Life Goals.

Financial Fitness Calculator

Get to know your Financial Fitness Score by answering few simple questions.

Immunity Score Calculator

Use our immunity calculator to find out your immunity score in just a few clicks!

Child Plan Calculator

A simple to use calculator that helps you plan for fulfilling your Child's Life Goals.

Retirement Calculator

Calculate the amount you need to invest today to accomplish your retirement life goals.

Body Mass Index (BMI) Calculator

Body Mass Index (BMI) is a measure to understand whether your body weight is healthy as per your height.

How to Retire Rich

ft. Mr. Sameer Joshi, Chief Agency Officer, discussing how to manage finances for financial freedom.

Decoding Union Budget FY24

Mr. Sampath Reddy, Chief Investment Officer, shares his views on the Union Budget 2023.

Will Writing Simplified

Mr. Dheeraj Sehgal, CDO – IB & Mr. Jatin Popat, WillJini discuss Will Writing & Succession Planning.

Buidling Wealth with SISO

ft. Mr. Ajay Rajvanshi, Sr. EVP, as he shares his views on building wealth with SISO.

NRIs and Investment in India

Mr. Rajesh Krishnan, COO, discusses immense investment potential of India for NRIs.

Customer Speaks

Happy with the services

I have invested in various products of Bajaj Allianz Life Insurance - I am happy with the services, returns and diversified product portfolio.

Rashmi Bhavnani

Satisfied, Trust

I am a happy customer who is satisfied with the after sales service. I have full trust in Bajaj Allianz Life Insurance Company.

Shrikant A Karande

Happy with the returns

I was introduced by my advisor to invest in Bajaj Allianz Life Insurance .I have invested in the same and am happy with the returns and services.

Kavita Goplani

Very Happy

I am a 7 year old customer of Bajaj Allianz Life Insurance and very happy about the services.

Dhruv Soni

Reviewed by Life Insurance Experts

Bajaj Allianz Life is a trusted insurance partner

At Bajaj Allianz Life, we are here to support you in building a secure and worry-free financial future. With over 24 years of experience, we provide a variety of life insurance plans, including protection, retirement, savings, investment and health, to meet your unique needs.

New Fund Offer Closes in 3 Days!

26.8% CAGR Returns^{^}

Avail @₹10 NAV^*

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BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS / FRAUDULENT OFFERS

IRDAI or its officials do not involve in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.

CIN: U66010PN2001PLC015959 | Registered Office Address: Bajaj Allianz House, Airport Road, Yerawada, Pune-411006, Maharashtra

Email: customercare@bajajallianz.co.in | Tollfree: 1800 209 7272

Disclaimer: Images used on this website and the models photographed in them are for representative purposes only and are not indicative of anyone's personal thoughts or ideas.

The Logo of Bajaj Allianz Life Insurance Co. Ltd. is provided on the basis of license given by Bajaj Finserv Ltd. to use its “Bajaj” Logo and Allianz SE to use its “Allianz” logo.

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Disclaimer

For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. The terms and conditions of product/plan as contained in the Policy Document issued by the Company is available on the Web Site. The names of the Company, Products/Plans/funds do not indicate the quality and its future prospects or returns. IN ULIPs, THE INVESTMENT RISK IN THE INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER. Unlike traditional products, Unit linked insurance products are subject to market risk, which affect the Net Asset Values & the customer shall be responsible for his/her decision. Tax benefits are as per the prevailing Income Tax Laws including the Income Tax Act, 1961 and are subject to change from time to time. Goods and Services Tax will have to be borne by the Policyholder as per applicable rates. All other charges shall be levied in accordance with the terms and conditions of the policy.

This calculation and results displayed are based on information provided and certain assumptions about the rates of return. It is for assistance only and does not constitute an offer or solicitation. It is not intended to be and must not alone be taken as the basis for an investment decision. Kindly note that the returns are only illustrative and they are not guaranteed. The returns do not indicate the upper or lower limits of the return that you may get with your policy and the value is dependent on a number of factors including future performance. Bajaj Allianz Life Insurance Company Limited shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information reported by the calculator.

¹©2021 Morningstar. All Rights Reserved. The Morningstar name and logo are registered marks of Morningstar, Inc. The information, data, analyses and opinions ("Information") contained herein: (1) include the proprietary information of Morningstar and its content providers; (2) may not be copied or redistributed except as specifically authorized; (3) do not constitute investment advice; (4) are provided solely for informational purposes; (5) are not warranted to be complete, accurate or timely; and (6) may be drawn from fund data published on various dates and procured from various sources. Morningstar, its affiliates, and its officers, directors and employees shall not be liable for any trading decision, damage or any other loss arising from using the Information. Please verify all of the Information before using it and do not make any investment decision, except upon the advice of a professional financial adviser. Past performance is no guarantee of future results. The value and income derived from investments may go down as well as up

Disclaimer

Claim Settlement Ratio of 99.29%^~

Term Insurance Plans

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Unit Linked Insurance Plan (ULIP)

What is a ULIP (Unit Linked Insurance Plan)?

How ULIP Works?

Why Should One Consider Investing in ULIPs?

Market-linked Returns

Multiple Investment Options

Flexibility

Tax Benefits

Liquidity

ULIP Plans By Bajaj Allianz Life

Steps for Buying A ULIP Online

For whom is a ULIP Investment Suitable For?

People with Varying Risk Appetites

People with a Long-Term Investment Horizon

Hands-On Investors

Investors Across Life Stages

How to Choose A ULIP?

Analyse your personal goals

Align your plan with your investment goals

Compare ULIPs

Take Advantage of ULIP Flexibility

Analyse Features and Benefits of ULIPs

Check the Solvency Ratio

Check the Claim Settlement Ratio (CSR)

Pick an Investment Strategy

Features of ULIPs

Dual Benefits: Investment and Insurance in One

ULIP Fund Switching: Flexibility in Managing Your Returns

Partial Withdrawals: Meeting Liquidity Needs

Top-Up Investments: Increasing Your Investment Amount

ULIP Lock-in Period: Building the Habit of Consistent Investing

Benefits of ULIP

Maturity Benefit: Unlocking Your Accumulated Fund Value

Death Benefit: Protection for Your Loved Ones

Asset Allocation: Empowering You with Choice

Wealth Generation: Harnessing Market-Linked Growth

Tax Benefits[1]

Stage 1: Entry Benefits - Avail Deductions on Premiums

Stage 2: Earnings Benefits - Tax-Free Growth

Stage 3: Exit Advantage - Tax Treatment at Maturity and Demise

Why Monitoring Your ULIP Fund Performance is Crucial?

Managing Risks

Switching Funds

Achieving Long-term Goals

Checking Fund Performance

ULIP Charges

What is NAV in ULIP?

Myths about Investing in ULIPs

Myth: ULIPs are Complex and Confusing

Myth: ULIPs Have High Charges

Myth: ULIPs Offer Limited Investment Options

Myth: ULIPs Lack Transparency

Myth: ULIPs Have Low Returns

Why Bajaj Allianz Life Insurance ?

Tax Benefits^[1]

Claim Settlement Ratio^~

Claim Approval^%

CARE Stable Rating^$

Assets Under Management (AUM)^**

Number of Lives Covered^#

Solvency Ratio^{^}