How to Maximize Your Returns with ULIPs?

ULIPs are one of the best tax saving instruments

6:46 min read

Unit Linked Insurance Plans or ULIPs are your gateway to cost-effective market linked investments. They don't just offer you a professionally managed investment cum protection platform, but also provide an entry to an ever-attractive equity market. ULIPs offer you an array of fund options to invest your premiums ranging from 100% debt to 100% equity.


You can maximize your returns from ULIPs by smart use of the switch and premium redirection features to leverage changes in the market.



ULIPs offer you the option to switch from one fund to another. This is subject to a minimum switch amount of Rs. 5000, by cancelling units in a fund and creating units in another fund where you choose to reinvest. Plus, there is no cap on the number of switches in a policy year and these are free of charge.


Following the receipt of your written request, we will redeem the units from the fund you wish to switch from, and purchase units in the fund you wish to switch to.


Premium Redirection

Here, you have the ease of redirecting your future premiums in the available funds - at any time, just by giving the company a written request. You must also specify the fund(s) in which you wish to redirect the premiums - along with the percentage of premium that you wish to allocate against each fund.


A maximum of six premium redirections are allowed in a policy year and for your further convenience - all these are free of charge.


These are convenient options which will protect you against market fluctuations by balancing the investment portfolio between debt and equity.


Unit Linked Insurance Products (ULIPs) are different from the traditional insurance products and are subject to the risk factors. The premium paid in the Unit Linked Life Insurance Policies is 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 of the insurer. In ULIP, the investment risk in the 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 fifth year.

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