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Check Out How ULIP Returns In 35 Years Are Calculated

A 35-year ULIP plan is a great way to accumulate money over the long term. It provides you with two significant aspects in only one plan. First, it provides life cover to protect your family (nominee) in case of demise of life assured during the policy period. Second, it helps you potentially accumulate wealth by investing in market-linked funds. You can choose from various types of funds depending on your objectives. Read More



These can include equity, debt, hybrid funds. Staying invested for a longer period, like 35 years, means your money has more time to grow. That’s why many people choose ULIPs, to get better ULIP returns in 35 years for important goals like retirement or big future expenses. It also provides tax benefits under Sections 80C (available only under the old tax regime) and 10(10D) of the Income Tax Act. Many investors use a Unit Linked Insurance Plan (ULIP) to plan for retirement or future needs. You can even withdraw after a few years if you want to. Read Less

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Written ByPalak Bagadia
AboutPalak Bagadia
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Palak Bagadia, Associate – Digital Marketing at Bajaj Allianz Life, with experience spanning content and performance marketing, recruitment, employee engagement in the BFSI industry, with a strong understanding of the insurance sector.
Rosy Pathak
Reviewed ByRosy Pathak
AboutRosy Pathak
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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.
Written on: 20th June 2025
Modified on: 23th June 2025
Reading Time: 20 Mins
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What Is a 35 Year ULIP Policy?


A 35 year ULIP policy is a life insurance plan that offers life insurance and market linked investment for a policy duration of 35 years. ULIP stands for Unit Linked Insurance Plan. In this plan, The policyholder pays a premium as per the chosen payment frequency which is invested in market linked funds of choice, like equity fund, debt fund, hybrid or balanced fund. The policy term is of 35 years, which means your money stays invested for a long time. This helps your money grow more with the power of compounding.


Many people aim for ULIP returns in 35 years to build a corpus over time. If something happens to you during these 35 years, your family gets either the fund value or the sum assured, whichever is higher as the death benefit.


You can pick funds based on your comfort with risk . Equity funds may grow faster and are typically associated with high risk. Debt funds offer stable returns with low risk while hybrid funds provide a balanced approach with moderate risk by combining equity and debt.


How Does a 35 Year ULIP Policy Work?


Here is how a ULIP works step by step:


  • Premium Payment: You pay money as per the chosen frequency (like monthly, quarterly, half yearly or annually). In single premium plans, the premium is paid in one go.
  • Split of Premium: A part of the premium is allocated towards providing life insurance coverage. The rest is used in market linked funds.
  • Fund Selection: You choose where to put your money—equity, debt, balanced funds.
  • Unit Allocation: Based on the NAV (Net Asset Value), units of the chosen fund are given to you.
  • Market Impact: Your fund value changes based on how well the market performs.
  • Fund Switching: You can change your fund choice during the 35 years (subject to policy terms and conditions) to match market trends, your life goals and risk taking ability.
  • Lock-in Period: For the first 5 years, you cannot make partial withdrawals. After that, partial withdrawals are allowed, subject to policy terms and conditions.
  • Maturity: At the end of 35 years, you get the accumulated fund value .
  • Life Cover: In case of your unfortunate demise during the policy period, your nominee gets the death benefit.

This long-term plan offers your family financial security through the life cover element while also helping you stay invested through market ups and downs. It’s suitable for retirement planning, child education, or future goals etc. Always remember, your returns depend various factors such as market performance, chosen funds etc.


Benefits of a ULIP Plan for 35 Years


Here are some of the key benefits of choosing a 35-year ULIP plan:


  • Wealth Growth : You get a chance to grow your wealth over a long period by investing in market-linked funds.
  • Insurance Cover : ULIP provides life cover to financially protect your family in case of demise of life assured during the policy term .
  • Flexible Fund Options : You can choose between equity, debt, or balanced funds depending on your risk taking ability.
  • Tax Savings : Premiums qualify for tax benefits under Section 80C (under the old tax regime), and the maturity amount may be tax-free under Section 10(10D).
  • Fund Switching : You can switch funds (subject to policy terms and conditions) based on market trends and your risk taking ability.
  • Partial Withdrawals : After five years (subject to policy terms and conditions), you can take out part of your money if you face an emergency.
  • Long-Term Gains : Since you stay invested for 35 years, you can enjoy the benefit of compounding and market recovery cycles.
  • Professional Management : One can also choose the fund management option wherein experts handle your funds.
  • Goal-Based Saving : You can use your ULIP to save for specific goals like retirement or your child’s education.
  • Transparency : You can track NAVs and see how your fund is performing.

Why Choose a 35 Year ULIP Policy?


If you are considering pooling your savings and securing your future, taking a 35 year ULIP policy can be a wise approach, as the longer you stay invested, the more your money will be able to continue growing. A ULIP policy is a combination of life insurance and investment. When you are invested in market-linked funds, your money has the potential to grow, while at the same time, you have life cover, and your family will continue to be protected. A ULIP policy offers other benefits as well, such as fund switching between funds , tax benefits under Sections 80C (under the old tax regime) and 10 (10D) etc. A policy with ULIP returns in 35 years will provide you with a chance of overcoming market fluctuations while gaining from compounding. A longer policy could benefit you towards bigger prospects, any one of the following: retirement planning, buying a home, or funding a child’s education.


Market-linked Returns


ULIPs provide an avenue for investors to put their money in market-linked funds. This can include equity fund, debt fund, hybrid fund. The returns of these funds are subject to market performance.


  • Equity funds: high return, high risk
  • Debt funds: low risk, stable return
  • Balanced funds: a mixture of both

You can switch between these based on market conditions and personal comfort levels.


Flexibility


Arguably, the most appealing aspect of a ULIP is its flexibility. You can:


  • Select your type of fund (equity, debt, balanced)
  • Switch funds (subject to policy terms and conditions)
  • Partial withdrawal (after 5 years lock in period, subject to policy terms and conditions)

Tax Benefits


ULIPs offer tax benefits in two ways:


  • Under Section 80C (available only under the old tax regime), you get tax deduction on the premium you pay (up to Rs. 1.5 lakh a year).
  • Under Section 10(10D), the maturity amount may be tax-free, subject to some conditions.

But do note: If your yearly premium is over Rs. 2.5 lakh for policies after 1 Feb 2021, the maturity amount may be taxed.


Life Coverage


ULIPs provide life insurance cover. In case of your demise during the 35-year policy term, your family(nominee) will receive either:


  • The sum assured, or
  • The current fund value,

whichever is higher. This gives peace of mind and financial protection to your loved ones.


Long-term Investment


A 35-year ULIP gives your money time to grow. The longer you stay invested, the better your returns can be due to compounding. It helps you plan big life goals like:


  • Retirement
  • Buying a home
  • Child’s higher education

Being long-term, it also helps reduce the risk of market ups and downs over time.


Partial Withdrawals


ULIPs allow partial withdrawals after 5 years (lock in period), subject to policy terms and conditions. This means if you need money in an emergency, you can consider withdrawing your funds. You can take out only what you need. It helps in:


  • Medical needs
  • Education expenses
  • Sudden home repairs etc

It adds a safety net to your long-term plan.


How Are 35-Year ULIP Returns Calculated?


The returns from a 35-year ULIP plan depend on several factors. The money is split between investment and life insurance. A part your premium goes into market linked investment funds you select, like equity, debt, hybrid funds.


The value of your ULIP grows based on the performance of these funds. If the market performs well, equity funds may give higher returns. On the other hand, debt funds are safer but give stable returns. The Net Asset Value (NAV) of the fund shows how well it is doing.


The final maturity amount is what you get after 35 years, based on how your chosen funds have performed.


Conclusion


A 35 year ULIP policy is a smart choice if you want to have a life cover and the possibility of money growth. It gives you the freedom to choose your funds, switch between them, and make partial withdrawal after the lock in period in times of need. It’s suitable for long-term goals like retirement or your child’s education.


FAQs


  1. What is the average return of ULIP?


    The average return of a ULIP depends on the type of fund you choose. These returns are market-linked and can change based on market performance. It’s important to stay invested longer to enjoy better average returns.


  2. Can ULIPs be used for long term goals?


    Yes, ULIPs can be utilized for long-term goals such as retirement planning etc. They give your money the time it requires to grow and compound. It is worthwhile to remain invested for 35 years because you can smooth out the ups and downs of the market. The longer you are invested, the more time it can grow while keeping your family protected under insurance coverage.


  3. Can ULIPs give high returns?


    ULIP has the potential to give you higher returns. However, these returns are not fixed and depend on market conditions. If you are invested for about 35 years, the chances of higher growth are higher, which works effectively with a longer horizon.


  4. What is the maturity benefit of ULIP?


    The maturity benefit of a ULIP will represent the total fund value that you will receive when the policy ends. The maturity value of a ULIP will depend on the NAV of the fund and the number of units. If the fund performs well and you remain invested for a longer period, such as 35 years, then the maturity value can be high.


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IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER

The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year.

ULIPs are different from the traditional insurance products and are subject to the risk factors. The premium paid in ULIPs are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

 The views stated in this article are not to be construed as investment advice and readers are suggested to seek independent financial advice before making any investment decisions. For more details on risk factors, terms and conditions please read the sales brochure & policy document (available on www.bajajallianzlife.com) carefully before concluding a sale. Bajaj Allianz Life Insurance Company Ltd., Regd. office Address: Bajaj Allianz House, Airport Road, Yerawada, Pune - 411006, Reg. No.: 116, CIN: U66010PN2001PLC015959, Call us on toll free No.: 1800 209 7272, Mail us: customercare@bajajallianz.co.in

Tax benefits as per prevailing Section 10(10D) and Section 80C (under old tax regime) of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

ARN No.: BJAZ-WEB-EC-15755/25

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Disclaimer

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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%%Above illustration is for Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V03) considering Male aged 25 years | Non-Smoker | Policy Term (PT)– 30 years | Premium Payment Term (PPT) – 30 years | Sum Assured opted is Rs. 1,00,00,000 | Online Channel | Standard Life | 1st Year Premium is Rs. 6,238. 2nd Year onwards premium is Rs. 6,659. Total Premium Paid is Rs. 1,99,349 | Medical Rates | Yearly Premium Payment Mode | Death benefit opted is lumpsum payout and monthly installments (Lumpsum Payout Percentage : 45, Income Payout Percentage : 55) | Premium shown above is exclusive of Goods & Service Tax/any other applicable tax levied, subject to changes in tax laws, and any extra premium and is for illustrative purpose only. This is inclusive of all the discounts mentioned above.

##Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

@Term Insurance plan bought online directly from Bajaj Allianz Life Insurance has no commissions involved.

^^The Return of Premium amount is total of all the premiums received, exclusive of extra premium, rider premium and GST & /any other applicable tax levied, subject to changes in tax laws
Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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Disclaimer

The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year.

ULIPs are different from the traditional insurance products and are subject to the risk factors. The premium paid in ULIPs are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Bajaj Allianz Life Insurance Company Limited is only the name of the Life Insurance Company and Bajaj Allianz Life Goal Assure II- A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN No.: 116L180V02) is only the name of the unit linked insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.

Bajaj Allianz Life Goal Assure II - A Unit-linked Non-Participating Individual Life Savings Insurance Plan (UIN: 116L180V02)

**Return of Mortality Charges at Maturity (ROMC) is payable at maturity, provided all due premiums have been paid

Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116

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Disclaimer

Bajaj Allianz Life eTouch- A Non Linked, Non-Participating, Individual Life Insurance Term Plan (UIN: 116N172V04)

*Tax benefits as per prevailing Section 10(10D) and Section 80C of the Income Tax Act shall apply. You are requested to consult your tax consultant and obtain independent advice for eligibility before claiming any benefit under the policy.Above Tax benefit is calculated considering deduction of Rs. 150,000 and applicable tax rate of 31.20%.

~Individual Death Claim Settlement Ratio for FY 2023-2024

1Premium Holiday has to be selected at inception to avail this benefit and also depends on other policy terms & conditions


Bajaj Allianz Life Insurance Co. Ltd. | IRDAI Reg. No. 116


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