Unit Linked Insurance Plans (ULIPs)

Unit Linked Insurance Plans (ULIPs)


In life, we all have a wish list somewhere – buy a new house, go on a lavish family vacation, or support your child's dreams of higher education abroad. These wishes can be fulfilled with disciplined investments in an Unit linked insurance plan, that can help you accumulate money and also protect it with life insurance coverage.

A ULIP plan is a insurance plan which has both insurance and investment component that will help you create a lump sum and support your goals financially. 

What is Unit Linked Insurance Plan?

ULIPs or Unit Linked Insurance Plans are life insurance cum investment options, which provide you with an opportunity to invest in different funds with a opportunity ofmultiplied growth while providing you with a protection cover.

In other words, investing in a ULIP plan provides a flexible approach to investment planning as ULIP plans help you to safely balance your fund with equity and debt components, with options to switch as the market changes. At the same time, your investments and life goals are protected by a financial safety net in the form of life insurance coverage under the ULIP plan.

How Does ULIP Plan Work?

Under a ULIP, the investment risk in the portfolio is borne by you (as a policyholder.) The primary purpose of buying a ULIP policy is to secure your loved ones financially against any unforeseen events.

1. When you invest in an ULIP plan, a portion of your premium is allocated for the life insurance cover as an insurance

2. The rest of the amount is invested in a variety of equity and debt fund options, as part of investment

3. Your money is invested in the market linked funds chosen by them

4. The total corpus invested is divided into 'units' with a specific face value, and each investor is allocated 'Units' in proportion to the amount they invested.

5. At any point in time, the value of each unit is known as the Net Asset Value (or NAV)

6. The NAV reflects any increase or decrease in the value of the underlying assets.

7. If you make partial withdrawals from the accumulated corpus, the corresponding number of Units is sold

8. Similarly, the inherent policy charges under the ULIP plan are deducted in the form of units.

9. At the time of maturity, you have the options to receive the total value of the fund, either as a lump sum, or monthly instalments paid over a specific period, as per the terms and confitions of ULIP plan.

10. In case of your demise within the policy tenure, the death benefit payable to your family will be the higher of the:

  • Sum Assured or Total Fund Value (as on the day of death)
  • Sum Assured plus Total Fund Value
Why Invest in ULIP Plan? | Max Life Insurance

Why Invest in ULIP Plan?

Buying the ULIP plan in India is a viable decision if you want to grow your savings through marked linked funds while making sure that your family is protected with a financial safety net throughout their lives. Investing in an ULIP Plan is beneficial if you want:

a) Flexibility to manage your money

b) Transparency of your investments

c) Security for your family's future with comprehensive maturity and death benefits

d) Long-term market-linked returns on your ULIP investment

Investing in the ULIP plans for the long term can be a smart decision for you because of the following factors:

1. investment in ULIP plans provides healthy market linked returns in the long run subject to marked performance.

2. The ULIP plan offers flexibility to change your fund allotments, thereby providing you with the option to secure your money from market volatilities

3. You can avail of significant tax savings on both your investments and maturity/death benefit  as per prevailing tax laws subject to change.

4. You can provide for a robust insurance cover for your loved ones

read more

 

Which Investor Class is Most Suited for Investments into a ULIP Plan?

A ULIP plan is suitable for all salaried and self-employed individuals with dependents who seek a long term insurance plan that offers the combined benefit of wealth creation and life insurance under a single policy.

You can invest in the  ULIP plan in India to secure your retirement, children's higher education, or any other financial goals. Furthermore, though ULIPs are market-linked insurance plan, you can purchase a ULIP plan even if you are not much savvy with the equity market and wish to avail of long term capital appreciation on your money.

Types of ULIP Plan to Consider 

Investing in a ULIP plan allows you to accumulate wealth in a personalized manner way, wherein you can maximize your savings as per your financial disposition and risk appetite to support different life goals. Different types of ULIP plans that may cater your financial needs include:

1. ULIP Plans for Retirement
 

By investing in a ULIP plan for retirement, you have to pay the premiums during the premium payment tenure under the ULIP policy. Upon maturity of the ULIP plan, you receive the accumulated wealth to support your lifestyle needs post-retirement.

2. ULIP Plans for Wealth Creation
 

Purchasing an ULIP plan for wealth creation helps you accumulate the desired amount of wealth within a specific period basis market returns. ULIP plans for wealth creation are suitable for all investors, who wish to contribute a portion of their earnings towards ensuring long-term financial stability

3. ULIP Plans for Children
 

As a parent, you always wish to provide the best possible upbringing and a thriving future for your child. By investing in a child plan, which is essential, a ULIP plan, you can make sure that your child's life goals are secured financially, even if something happens to you, and you are not there with your family.

How to Choose the Best ULIP Plan?

Here are a few things that you must keep in mind while choosing the best ULIP plan in India:

1. Select ULIP Plan Fund Options as Per Your Goals

A ULIP plan gives you an option to invest in various debt and equity funds. While equities help provide high growth potential return for the long term basis marked returns, the debt options offer higher protection to your wealth against market changes. You must choose a ULIP plan as per your goals and risk tolerance.

2. Choose an Adequate Life Insurance Cover Amount

The ULIP plans are designed to help you meet your long-term financial goals, such as children's higher education and your retirement. Furthermore, a ULIP policy also provides a financial safety net for your family; in case something happens to you. Thus, you must select the right life insurance coverage amount to secure your loved ones against financial instability in your absence.

3. Go for an Extended Investment Tenure under Your ULIP Plan

Given the fact that the ULIPs plans help in wealth creation, it is prudent that you remain invested in ULIP policy for an extended period. A ULIP plan has a lock-in period of 5 years, and only after its completion can you make partial withdrawals from the ULIP policy. Also, when you remain invested in a ULIP policy for the long term, you allow your accumulated wealth to maximise through compounded returns. 

4. Look for Maximum Tax Saving Benefits

Having the best ULIP plan in India enables you to avail of significant tax savings as per the various Sections of the Income Tax Act, 1961. Here are the tax exemption benefits that are available under a ULIP plan:

a) Tax savings up to Rs. 1.5 lakh on the premium paid towards the ULIP policy under Section 80C of income tax Act 1961

b) You can switch between different equity and debt fund options

c) Maturity/death benefits under an ULIP plan are tax-exempt under Section 10(10D) of the Income Tax Act 1961

Key Features of a ULIP Plan

1. Investment and Insurance Benefits Under a Single Plan

The primary purpose of a ULIP plan is to help you avail of maximal wealth appreciation on your ULIP investment through different market-linked instruments and returns. At the same time, the ULIP plan provides comprehensive life insurance coverage benefits to you and your loved ones throughout the policy tenure. 

2. Switch Between Different Fund Options

You can switch between the available equity and debt fund options under your ULIP plan, at any time during the Policy Term. You can make up to a fixed number of switches within a financial year, without incurring any additional charges. To know whether your chosen ULIP plan offers free switches, it is advisable that you refer to the policy document. 

1. Investment and Insurance Benefits Under a Single Plan

The primary purpose of a ULIP plan is to help you avail of maximal wealth appreciation on your ULIP investment through different market-linked instruments and returns. At the same time, the ULIP plan provides comprehensive life insurance coverage benefits to you and your loved ones throughout the policy tenure. 

2. Switch Between Different Fund Options

You can switch between the available equity and debt fund options under your ULIP plan, at any time during the Policy Term. You can make up to a fixed number of switches within a financial year, without incurring any additional charges. To know whether your chosen ULIP plan offers free switches, it is advisable that you refer to the policy document.

3. Premium Redirection 

When you invest in a ULIP plan, you may redirect your future premiums between different available funds options at any time. You would have to quote your Policy Number and specify the fund(s) in which you want to redirect the premium. You may also specify the percentage of premium allocated against each fund.  

4. Partial Withdrawals

All ULIP plans have an initial lock-in period of 5 years. However, you can choose to make a fixed number of partial withdrawals from the accumulated fund value, after the completion of the lock-in period, without incurring any additional charges. 


3. Premium Redirection

When you invest in a ULIP plan, you may redirect your future premiums between different available funds options at any time. You would have to quote your Policy Number and specify the fund(s) in which you want to redirect the premium. You may also specify the percentage of premium allocated against each fund.  

4. Partial Withdrawals

All ULIP plans have an initial lock-in period of 5 years. However, you can choose to make a fixed number of partial withdrawals from the accumulated fund value, after the completion of the lock-in period, without incurring any additional charges. 

Benefits of ULIP Plans

1. Maturity Benefit 

On maturity of the ULIP policy, you become eligible to avail of an amount equal to the accumulated fund value as maturity/survival benefit.

2. Death Benefit 

In case of untimely demise anytime within the ULIP policy tenure, your family will receive the ULIP plan insurance benefit as per the policy terms and conditions.

3. Loyalty Additions

The ULIP plans help you boost your accumulated wealth through loyalty additions, at the end of each ULIP policy year. A specific percentage of the fund value under the ULIP plan is added to your policy earnings through the creation of additional units. Loyalty Additionals are offered under the following plans from Max Life Insurance –

4. Wealth Boosters

When you invest in a ULIP plan, the insurer may also provisions wealth boosters, along with loyalty additions. In these wealth boosters, an additional percentage of the fund value under the ULIP plan is added to your accumulated wealth by creating additional units at the end of each policy year. Wealth boosters are offered under the following plans from Max Life Insurance –

5. Dynamic Fund Allocation

Dynamic Fund Allocation option under a ULIP plan is an investment strategy, wherein your invested amount is primarily allocated in equity funds during the early part of your policy term. As your ULIP policy term progresses, the fund allocation shifts towards more conservative fund options. Overall, Dynamic Fund Allocation helps you avail of maximal investment returns if you are an investor who is less familiar with managing market-linked investments.  

What is a ULIP Calculator?

A ULIP calculator is primarily a tool developed to help you determine the maturity amount under a ULIP plan, based on your expected future investment value and returns under the ULIP policy.

Online ULIP calculators have different features to estimate the future value of your chose ULIP plan investments and expected returns, which in turn, helps you compare various ULIP plans. In other words, you can use a ULIP calculator to make rational investment decisions based on

comparative cost-benefit analysis of a ULIP plan.

Such ULIP calculator help determine the maturity amount by assuming several factors. Please consult your financial advisor before investing.

ULIP Plans from Max Life Insurance

Max Life Insurance offers the following ULIP plan variants:

a. Max Life Fast Track Super

Max Life Fast Track Super Plan (A Unit Linked Non-Participating Individual Life Insurance Plan, UIN: 104L082V04 )  is a ULIP plan that aims to provide insurance options with a simplistic and safe approach to invest in the market with multiple fund options. The ULIP plan helps you:

  • Achieve long-term goals while securing your future through a single plan

  • Enjoy market-linked returns by investing in any of the six fund options

  • Get additional loyalty rewards for staying invested

ULIP plan Max Life Insurance

a. Max Life Fast Track Super

Max Life Fast Track Super Plan (A Unit Linked Non-Participating Individual Life Insurance Plan, UIN: 104L082V04 )  is a ULIP plan that aims to provide insurance options with a simplistic and safe approach to invest in the market with multiple fund options. The ULIP plan helps you:

  • Achieve long-term goals while securing your future through a single plan
  • Enjoy market-linked returns by investing in any of the six fund options
  • Get additional loyalty rewards for staying invested


ULIP plan Max Life Insurance

b. Max Life Platinum Wealth Plan

Max Life Platinum Wealth Plan (A Unit Linked Non Participating Individual Life Insurance Plan, UIN: 104L090V04) is an ideal ULIP plan that helps you accumulate and grow your savings so that you achieve your long-term goals quickly. With this offline ULIP plan, you can maximize your hard-earned money through market-linked returns and additional wealth boosters while protecting your family's future, even when you are no longer around. The Platinum Wealth ULIP plan helps you:

  • Secure your family's future with comprehensive maturity and death benefits
  • Enjoy guaranteed loyalty additions and wealth boosters as additional benefits
  • Flexibility to choose premium payment term and policy term as per your convenience
     

c. Max Life Online Savings Plan - Variant 1

Max Life Online Savings plan – Variant 1 (A Unit Linked Non Participating Individual Life Insurance Plan, UIN: 104L098V03) provides the dual benefit of lump sum payout for your goal along with protection from life's uncertainties. The ULIP plan gives the flexibility to choose from a wide range of funds to suit your investment style and choice of the policy term while enabling you to save taxes on your investments. Max Life Online Savings Plan – Variant 1 offers the following features and benefits:

1) Inbuilt Life Cover with Flexibility to Increase the Cover

2) Zero policy admin charge and Zero premium allocation charge

3) Flexibility to switch your money as many times you want

4) Flexibility to choose Policy Term from 5 years to 30 years

5) Flexibility to choose Investment Funds basis Risk Profile

d. Max Life Online Savings Plan - Variant 2

Max Life Online Savings Plan – Variant 2 (A Unit Linked Non Participating Individual Life Insurance Plan, UIN: 104L098V03) provides a lump sum payout payable immediately on death, followed by regular payouts in the form of Family Income Benefit and the total Fund Value at the end of the Policy Term. Furthermore, all outstanding premiums after the date of death of the Life Insured will be funded by the Company. Max Life Online Savings Plan – Variant 2 offers comprises the following features:

1) Triple protection on parent's demise through a Lump sum, Monthly Income and Auto Policy Continuation

2) Zero policy admin and premium allocation charge

3) Flexibility to switch money unlimited times

4) Flexibility to choose Policy Term - from 5 years to 30 years

5) Flexibility to choose Investment Funds basis Risk Profile

e. Max Life Shiksha Plus Super

Max Life Shiksha Plus Super Plan (A Unit-Linked Non-Participating Individual Life Insurance Plan, UIN: 104L084V04) helps you secure a fund for your child's future education and back their dreams. The ULIP plan helps provide financial support whenever needed. Max Life Shiksha Plus Super Plan offers the following features and benefits:

1) Insurance with the flexibility to invest in the equity market with multiple fund options

2) Financial security for your child during emergencies

3) Funds to meet your child's higher education costs and future expenses

f. Max Life Forever Young Plan

Max Life Forever Young Pension Plan (A Unit-Linked Non-Participating Individual Pension Plan, UIN - 104L075V03) helps you create savings for retirement years while safeguarding you from the ups and downs of the equity market. You can also get additional annuity plan benefits to safeguard your partner and your family against unforeseen events so that you and your loved ones' live life on your terms. Max Life Forever Young Plan offers the following features:

1) Build a corpus to fulfil your retirement goals

2) Shield your savings from market downturns

3) Secure your spouse's future financially, even if you are not around

ULIP Charges

Let us take a closer look at the different ULIP plan charges offered by Max Life Insurance:

1. Premium Allocation Charge 

The Premium Allocation Charge is expressed as a percentage of the premium received and is levied against the allocation of variable premium amounts against different fund options.  

2. Fund Management Charge

This is a charge levied as a percentage of the value of assets and shall be appropriated, usually daily, by adjusting the Net Asset Value of the Fund. The rate to be levied will be equal to the annual rate, as given above, divided by 365 and multiplied by the number of days that have elapsed since the previous unit valuation date.

3. Policy Administration Charge

This is a charge expressed as a percentage of premiums paid for all variants and is levied at each monthly anniversary by cancelling proportionate Units starting from the date of commencement of the policy.

4. Mortality Charges

Mortality charge is levied for providing risk cover to the life Insured during the Policy Term. This charge is unisex and is levied on the attained age of the life Insured on the Sum at Risk, and these charges are guaranteed for the entire Policy Term.

5. Surrender / Discontinuance Charge

This charge shall be levied on the Fund Value at the time of Discontinuance of Policy or effecting Complete Withdrawal (Surrender), whichever is earlier.

ULIP Charges

Let us take a closer look at the different ULIP plan charges offered by Max Life Insurance:

1. Premium Allocation Charge 

The Premium Allocation Charge is expressed as a percentage of the premium received and is levied against the allocation of variable premium amounts against different fund options.  

2. Fund Management Charge

This is a charge levied as a percentage of the value of assets and shall be appropriated, usually daily, by adjusting the Net Asset Value of the Fund. The rate to be levied will be equal to the annual rate, as given above, divided by 365 and multiplied by the number of days that have elapsed since the previous unit valuation date.

3. Policy Administration Charge

This is a charge expressed as a percentage of premiums paid for all variants and is levied at each monthly anniversary by cancelling proportionate Units starting from the date of commencement of the policy.

4. Mortality Charges

Mortality charge is levied for providing risk cover to the life Insured during the Policy Term. This charge is unisex and is levied on the attained age of the life Insured on the Sum at Risk, and these charges are guaranteed for the entire Policy Term.

5. Surrender / Discontinuance Charge

This charge shall be levied on the Fund Value at the time of Discontinuance of Policy or effecting Complete Withdrawal (Surrender), whichever is earlier.

6. Switch Charge

A maximum of twelve Switches are allowed in any policy year and are free of charge. Switches may be permitted during the settlement period.

7. Premium Redirection Charge

A maximum of six Premium Redirections are allowed in each policy year and are free of any charge.

8. Partial Withdrawal

After the first five policy years, a maximum of two partial withdrawals are allowed in a policy year and are free of any charge. No partial withdrawal will be permitted during the period of discontinuance and settlement period.


6. Switch Charge

A maximum of twelve Switches are allowed in any policy year and are free of charge. Switches may be permitted during the settlement period.

7. Premium Redirection Charge

A maximum of six Premium Redirections are allowed in each policy year and are free of any charge.

8. Partial Withdrawal

After the first five policy years, a maximum of two partial withdrawals are allowed in a policy year and are free of any charge. No partial withdrawal will be permitted during the period of discontinuance and settlement period.

Here is a summary of the different charges for ULIP plan from Max Life Insurance:

Charges / Plans

Premium Allocation Charge  

Fund Management Charge  

Policy Administration Charge  

Mortality Charges

Surrender / Discontinuance Charge

Switch Charge  

Premium Redirection Charge  

Partial Withdrawal  

Rider Charge

Max Life Fast Track Super Plan

Yes

Yes

Yes

Yes

Yes

No

No

No

No

Max Life Platinum Wealth Plan

Yes

Yes

Yes

Yes

Yes

No

No

No

Yes

Max Life Online Savings plan – Variant 1

No

No

Yes

Yes

Yes

No

No

No

No

Max Life Online Savings Plan – Variant 2

No

No

Yes

Yes

Yes

Yes

No

No

No

Max Life Shiksha Plus Super Plan

Yes

Yes

Yes

Yes

Yes

No

No

No

No


For more details about the applicable ULIP plan charges, you can refer to the individual policy leaflets

ARN: PCP/UP7

Fund options and their performances

Below are different funds available for investment

Fund options and their performances

Below are different funds available for investment
Growth Fund
(SFIN: ULIF00125/06/04LIFEGROWTH104)

Investment Group: Equity

Fund Returns
7.69%
Benchmark* Returns
9.03%
*(Crisil Bond Index 50% and NSE Nifty 50%)
Nature of Fund
An open ended hybrid fund with equity portion
focused on large caps
Investment Strategy
This fund invests in various asset classes such as Equities, Government Securities, Corporate Bonds and Money Market Instruments. The equities exposure in the Fund will at all times be at a minimum of 20% but not more than 70%. The Fund invests the remaining Fund corpus in debt instruments across Government, corporate and money market papers.
Balanced Fund
(SFIN:  ULIF00225/06/04LIFEBALANC104)

Investment Group: Balanced

Fund Returns
8.24%
Benchmark* Returns
9.23%
*(Crisil Bond Index 70% and NSE Nifty 30%)
Nature of Fund
An open ended hybrid fund investing in a mixture of debt instruments and equities
Investment Strategy
This fund invests primarily in debt instruments such as Government Securities, Corporate Bonds, Money Market Instruments etc. issued primarily by Government of India/State Governments and to some extent in Corporate Bonds and Money Market Instruments. The Fund invests minimum of 10% and up to maximum of 40% of Fund corpus in equities.
High Growth Fund
(SFIN: ULIF01311/02/08LIFEHIGHGR104)

Investment Group: Equity

Fund Returns
9.71%
Benchmark* Returns
1.06%
*(Nifty MidCap Free Float 100%)
Nature of Fund
An open ended equity multicap fund with focus on midcaps
Investment Strategy
The fund is a multi-cap fund with a focus on mid cap equities, where predominant investments are equities of companies with high growth potential in the long term (to target high growth in capital value assets). At least 70% of the Fund corpus is invested in equities at all times. However, the remaining is invested in government securities, corporate bonds and money market instruments; hence the risk involved is relatively higher.
Growth Super Fund
(SFIN: ULIF01108/02/07LIFEGRWSUP104)

Investment Group: Equity

Fund Returns
8.74%
Benchmark* Returns
7.61%
*(NSE Nifty 100%)
Nature of Fund
An open ended equity fund with focus on large caps
Investment Strategy
This is primarily an equity oriented fund. At least 70% of the Fund corpus is invested in equities at all times. The remaining is invested in debt instruments across Government, corporate and money market papers.
Conservative Fund
(SFIN: ULIF00325/06/04LIFECONSER104)

Investment Group: Debt

Fund Returns
7.73%
Benchmark* Returns
9.47%
*(Crisil Bond Index 90% and NSE Nifty 10%)
Nature of Fund
An open ended hybrid fund investing predominantly in debt instruments
Investment Strategy
Conservative Fund invests primarily in debt instruments such as Government Securities, Corporate Bonds, Money Market Instruments etc. issued primarily by Government of India/State Governments and to some extent in Corporate Bonds and Money Market Instruments. The Fund invests up to 15% of Fund corpus in equities
Secure Plus Fund
(SFIN: ULIF01628/04/09LIFESECPLS104

Investment Group: Debt

Fund Returns
8.63%
Benchmark* Returns
9.54%
*(CRISIL Bond Index 100%)
Nature of Fund
An open ended debt fund which invests across duration with bias towards government securities
Investment Strategy
(This Fund is available only under Systematic Transfer Plan (STP), Lifecycle Based Portfolio and Trigger Based Portfolio strategy) .The investment objective of the Fund is to provide higher security of investment by way of higher proportion of investment in sovereign papers that carry an implicit guarantee for repayment of principal and interest from the Government of India. This Fund invests in debt instruments such as Government Securities, Corporate Bonds, Money Market Instruments etc. issued primarily by Government of India/State Governments, Corporate and banks. The Fund also invests in money market instruments as prescribed by IRDAI. No investment is made in equities.
Secure Fund
(SFIN: ULIF00425/06/04LIFESECURE104)

Investment Group: Debt

Fund Returns
7.85%
Benchmark* Returns
9.51%
*(CRISIL Bond Index 100%)
Nature of Fund
An open ended debt fund which invests across duration
Investment Strategy
This fund invests in debt instruments such as Government Securities, Corporate Bonds, Money Market Instruments etc. issued primarily by Government of India/State Governments, Corporate and banks. The Fund also invests in money market instruments as prescribed by IRDAI. No investment is made in equities.
Diversified Equity Fund
(SFIN: ULIF02201/01/20LIFEDIVEQF104)

Investment Group: Equity

New Fund

Nature of Fund
An open ended equity multi cap fund with focus on large and mid caps
Investment Strategy
The investment objective of the fund is to invest at least 70% of the fund corpus in a diversified basket of equity stocks over the entire market capitalisation range, primarily focusing on large and mid-cap companies covering a wide variety of sectors to provide investors with long term growth opportunities while ensuring liquidity of investments.
Money Market Fund II
(SFIN:ULIF02301/01/20LIFEMONMK2104)

Investment Group: Debt

New Fund

Nature of Fund
An open ended liquid fund which invests only in money market instruments
Investment Strategy
The investment objective of the fund is to deliver returns linked to Money Market levels through a portfolio with minimal interest rate and credit risk so as to provide a high level of safety of capital.
Dynamic Bond Fund
(SFIN: ULIF02401/01/20LIFEDYNBOF104)

Investment Group: Debt

New Fund

Nature of Fund
An open ended debt fund which invests across duration with bias towards corporate bonds
Investment Strategy
The investment objective of the fund is to generate superior returns by investing in high quality debt instruments including Government securities, corporate bonds and money market instruments with an objective to maximize returns keeping in mind safety and liquidity of the portfolio.

Note: Returns are 5 year compounded annualised growth rate (CAGR). Past performance is not indicative of future performance. Star rating is Overall Rating. Rating and returns are as on 31st October,2020.

In the unit linked insurance policies, investment risk in the investment portfolio is borne by the policy holder. Past performance is not necessarily indicative of future performance. 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. Returns are 5 year compounded annualised growth rate (CAGR). Rating and returns are as on 31st October, 2020.

© 2020 Morningstar. All Rights Reserved. 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 authorised; (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. Morningstar is not responsible for any trading decisions, damages or other losses related to the Information or its use. Please verify all of the Information before using it and don’t 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.

The ‘Morningstar Overall Rating’ is a quantitative assessment of a fund’s past performance—both return and risk—as measured from one to five stars, with one (1) being the lowest and five (5) being the best as on 31st October, 2020.

FAQs and Customer Q&As

FAQs and Customer Q&As

✅  Which ULIP Plan is best?

Any ULIP plan that allows you to maximize your savings through regular market-linked investments while offering a robust life insurance cover to you and your family is the best for you. You must compare different ULIP plan options available in the market and use a ULIP calculator to estimate which ULIP plan offers the desired investment cum insurance benefits.  

✅ What is the right time to invest in ULIP?

Investing in a ULIP plan provides sustainable long-term benefits. Therefore, if you are a salaried or self-employed individual, it is advisable that you invest in a ULIP plan as soon you start earning an income and choose a ULIP policy tenure that extends throughout your working years. This will help you maximize your returns under the ULIP plan while ensuring that your family members are protected against life's uncertainties at all times.

✅ Is ULIP Better than Mutual Funds?

Mutual funds and ULIP plans both offer market-linked returns on your investment. However, ULIPs offer certain advantages over mutual funds, including:

  • Dual benefits of investment cum life insurance benefits under a single plan
  • Tax saving benefits (since ULIP plans are essentially considered to be life insurance plans) [other than ULIP plans, only ELSS or Equity Linked Savings Schemes provide tax benefits under Section 80C of income tax act 1961]
  • Maturity /death benefit under exempt under Section 10(10D) of income tax Act 1961

✅ Are ULIPs a good investment?

A ULIP plan enables you to avail of significant investment returns as per your risk appetite and financial disposition, while protecting your loved ones from the uncertainties of life.

At the same time, investing in a ULIP plan helps you lower your tax liability, by leveraging tax-saving deductions and exemptions on both premium payable and ULIP plan maturity/death benefit. 

✅ Are ULIPs suitable for the long term?

Almost each of the ULIP plan in India offers long-term wealth creation opportunities. The earlier you invest in a ULIP plan, the better chances you have to maximize your investment returns during the investment period. ULIP plans allow you to protect your loved ones throughout your working years with an insurance cover while providing significant returns on your market-linked returns to support your goals and life post-retirement. 

✅ Can I cancel/surrender my ULIP plan?

You may choose to surrender/discontinue your ULIP plan investment. When you choose to cancel your ULIP investment, you may have to pay Surrender/Discontinuance Charges and forego a significant portion of your accumulated returns and life cover benefit will also be ceased to exist Thus, cancellation/discontinuance of your ULIP plan investment is not advisable. 

✅ When can I withdraw ULIP?

All ULIP plans have an initial lock-in period of 5 years, wherein all ULIP policy charges are levied on your investment. Once the lock-in period completes, you can choose to make a fixed number of partial withdrawals from your ULIP plan in a given financial year as per terms and conditons of the plan 

✅ What is the expiry date of the lock-in period?

All ULIP plans have an initial lock-in period of 5 years

✅ What is the meaning of fund value?

Under a ULIP plan, you can choose from different fund options to invest in, as per your risk appetite and existing market conditions. The total financial worth of the units owned by you (as the policyholder) is known as the Fund Value. Fund Value can be calculated for a particular day by multiplying the number of units held by you with the Net Asset Value (NAV) of each unit.

What are the charges in ULIP?

There are different charges levied under a ULIP plan, including Premium Allocation Charge, Fund Management Charge, Policy Administration Charge, Mortality Charge, Surrender / Discontinuance Charge, Switch Charge, Premium Redirection Charge, and other Miscellaneous Charges. 

✅ How is the fund value calculated in ULIP?

The fund value or the total financial worth of the units owned by you (as the policyholder) can be calculated by multiplying the number of units held by you with the Net Asset Value (NAV) of each unit. The NAV is subject to daily variations, i.e. it changes daily depending on the existing market conditions.

✅ What is NAV?

The NAV or Net Asset Value is essentially the value of your total holdings o. The NAV is calculated by adding the holdings under the plan, as on a given day, and deducting all applicable charges.

✅ How Can I Reduce Risk on my ULIP Investment?

A ULIP plan allows you to avail of maximal returns by allocating your investment into different equity and debt instruments whose value is subject to market changes. However, the risk associated with ULIP investment is significantly lowered because you have the flexibility to switch between aggressive and more conservative fund options available under the ULIP plan, depending upon your risk tolerance and market conditions. This way, you can take steps to minimize your risk and protect your investments from market volatilities.

✅ What is AUM?

AUM or Asset Under Management is described as the total market value of investments or assets managed by the life insurance company on behalf of its investors. AUM represents the overall market value of a particular fund option – combining the value of the asset and capital.AUM or Asset Under Management is described as the total market value of investments or assets managed by the life insurance company on behalf of its investors. AUM represents the overall market value of a particular fund option – combining the value of the asset and capital.

Choose your ULIP Plan

Choose your ULIP Plan

MAX LIFE FLEXI WEALTH PLUS PLAN

  • Guaranteed Loyalty Additions and Guaranteed wealth Boosters to boost fund value
  • Choice of 10 funds; protection from market volatilities with five investment strategy options
  • Return of Mortality Charges upon surviving the plan tenure
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MAX LIFE PLATINUM WEALTH PLAN

  • Life cover of 10 times the total premium paid in a year

  • Choice of 6 funds; protection from market volatilities with two strategy options

  • Additional wealth boosters to enhance your overall fund value

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MAX LIFE FAST TRACK SUPER

  • Grow your fund with loyalty additions
  • Choice of 6 funds; protection from market volatilities with two strategy options
  • Tax Benefits based on the prevailing tax laws
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Why Choose Max Life

Here are some of the numbers which speak about our accomplishments

Why Choose Max Life

Here are some of the numbers which speak about our accomplishments
Claims Paid Percentage

99.22%

99.22%

(Source : As per Annual Audited Financials, FY' 19-20)

Max Life Presence

269 Offices

269 Offices

(Source : As reported to IRDAI, FY19-20)

Sum Assured

₹9,13,660 Cr.

₹9,13,660 Cr.

In force (individual) (Source : Max Life Public disclosure, FY19-20)

Assets Under Management

₹68,471 Cr.

₹68,471 Cr.

(Source : Max Life Public disclosure, FY19-20)

More reasons why our customers choose us

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Customer Reviews on Max Life ULIP Plans

Customer Reviews on Max Life ULIP Plans

There was a time when I felt uncomfortable the moment anyone discussed stock markets and mutual funds. I am still not sure how they work. However, a friend of mine had invested in Max Life ULIP plans, and he encouraged me to explore the same. I am glad that I took his advice seriously. Max Life ULIP is one of the best investment plans in the market with complete flexibility to invest in debt and equity funds as and when required.

Mr. Shinde, 33

Pune

Let’s Connect

Let’s Connect

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0124 648 8900
 (09:00 AM to 09:00 PM Monday to Saturday)

online@maxlifeinsurance.com
SMS 'LIFE' to 5616188

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0124 - 5098162; 0124 -  4905150
(9:00 AM to 6:00 PM Monday to Saturday)

nri.helpdesk@maxlifeinsurance.com