Aditya Birla Sun Life Insurance Company Limited
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Most millennials consider their retirement to be a phase of achievement and happiness. After working hard all their life, most people wish to sit back and enjoy the second innings of their lives. While many wait for their retirement age to near and only then start planning, the smart ones start to plan their retirement very early in life. If you want to pursue your unfulfilled dreams after you retire, you not only need to start working towards this goal early on but also need to find the right investment products. While there is a plethora of options available in the market, Unit Linked Pension Plans are considered to be a long-term retirement solution that offers you multiple benefits.
At the onset, a Unit Linked Insurance Plan or a ULPP may look similar to a Unit Linked Insurance Plan, ULIP. While there are certain similarities between the two, the core difference is that, unlike a ULIP, a ULPP does not offer life insurance coverage2. The money you assign is invested in your chosen funds. Just like ULIP, a ULPP also comes with a lock-in period of 5 years. During this period, you cannot withdraw any money that you have invested.
You may be thinking of reasons why you may choose to invest in a unit-linked pension plan. Here are the features and benefits of the plan:
Features of a unit-linked pension plan:
Benefits of a unit-linked pension plan:
Not everyone may have the skills or the aptitude to manage their financial portfolio. However, having a general idea of what a unit-linked pension plan is and how it works can give you a fair idea of how your investment will benefit you in the future.
The premium paid is invested in bonds and government securities for future returns. As these are affected by market fluctuations, the returns may vary. So, it is a preferred option for people who are ready to take some risk for future returns. Depending on the profit of the investment, the policyholders receive assured returns post-tenure of the plan.
Regarding the tax implication, there isn’t much difference between Unit Linked Pension Plans, ULPP and Unit Linked Insurance Plans, ULIP. Here are the tax benefits1 that you can avail of:
While you are planning for the right unit-linked pension plan, here are a few things that you must not skip:
Your retirement is going to be a new phase of life, and imagining this phase without a regular source of income can be scary. Unit Linked pension plans offer a smart way to ensure financial stability. However, you also need to bear in mind that there are various other retirement options. When you look out for choices, you would come across investment products such as mutual funds, National Pension Scheme, ULIPs, etc. The decision that you make should cater to various factors, such as your current income, your future plans, your liabilities, and so on. Retirement planning is a crucial thing. Make sure you come to a well-thought-of conclusion.
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Buy ₹1 Crore Term Insurance at Just ₹576/month*
Exclusively For Salaried Individuals
4 Plan Options
Life Cover upto 70 years
Optional Accelerated Critical Illness benefit
Inbuilt Terminal Illness Benefit
Life Cover
₹1 crore
Premium:
₹576/month*
Guaranteed returns after a month¹
1 Tax benefits are subject to changes in tax laws. Kindly consult your financial advisor for more details. #Sec 10(10D) benefit is available subject to fulfilment of conditions specified therein
ABSLI Salaried Term Plan (UIN:109N141V04) is a non-linked non-participating individual pure risk premium life insurance plan; upon Policyholder’s selection of Plan Option 2 (Life Cover with ROP) this product shall be a non-linked non-participating individual savings life insurance plan.
*LI Age 21, Male, Non Smoker, Option 1: Life Cover, PPT: Regular Pay, SA: ₹ 1 Cr., PT: 10 years, Annual Premium: ₹ 6400/- ( which is ₹ 576/month) Premium exclusive of GST. On death, 1 Cr SA is paid and the policy terminates.
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