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Market linked returns
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Double advantage of insurance cum investment
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Flexibility to choose from a range of funds
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Tax benefits1
ULIP Products
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Benefits of ULIP
Build a corpus for long-term goals
With disciplined savings and investments, ULIPs help you build a sizeable corpus for essential long-term goals such as children’s higher education, their marriage and your retirement. By paying premiums on a regular basis, you can easily plan and finance your long-term objectives.
Life cover
A Unit-Linked Insurance Plan offers life cover which protects your family from financial difficulties arising in your absence.
Investment flexibility
ULIPs give you complete control over your money and the way you want to invest it. It gives you the option to switch between funds , choose the fund where you want your future premiums to be redirected.
Also, in case of an emergency, it allows you to withdraw your money partially, and in case you have surplus funds, you can invest them up and above your existing investments.
Tax benefits
Premiums paid towards ULIP Policy are eligible for tax deduction up to Rs. 1.5 lakhs under section 80C of the Income Tax Act, 1961.
In case of your death during the policy term, the pay-out received is tax-exempt under section 10 (10D).
Higher growth potential
Buying ULIPs offer higher growth potential as you get a chance to invest in capital markets. This, in turn, helps you to accumulate funds and address goals such as buying a house, purchasing your dream car or fund your child’s higher education, among others.
Rewards for staying investing for the long term
If you stay invested for the long-term in ULIP, your money grows through guaranteed additions offered by the insurance company in different forms such as loyalty additions and wealth boosters.
Things to Consider Before Buying ULIPs
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Evaluate Risk profile
Take into account your risk appetite or risk tolerance before investing in ULIPs. If you are a young and aggressive investor with a high-risk tolerance, then you can opt for equity funds in ULIPs. On the other hand, if you require financial stability then you can opt for debt funds.
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Check Performance of the ULIP plan
Compare the performance of your ULIP plan over the long term before buying. As it has an investment component, check out how the respective equity, debt or hybrid funds have fared against their benchmark indices such as Nifty 50, BSE 100, NSE 500, Crisil Composite Bond Index, etc., over the long term.
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Charges levied
It is essential to have a proper knowledge and information about charges levied in order to choose the right Wealth Creation Plan. Several charges like allocation charges, initial charges, and surrender charges need to be considered.
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Understand the plan
Each ULIP plan is different from another one. It is better to understand the pros and cons of each. This enables one to pick the perfect fit plan.
Riders
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ABSLI Accidental Death Benefit Rider Plus (UIN:109B023V02)
Get additional protection in case of death due to accident at a nominal cost.
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ABSLI Waiver of Premium Rider (UIN:109B017V03)
All future premiums are waived in case of death, disability, or diagnosis of critical illness.
FAQs
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What is the meaning of ULIP?
ULIP stands for unit linked insurance plan. It is a type of life insurance policy which offers dual benefits of protection and investment.
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What are the benefits of buying ULIP?
Protection cum investment in a single product, flexibility of investment, choice of funds and partial withdrawal facility are some advantages of ULIPs.
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What is the sum assured in ULIP?
The minimum sum assured is 10 times the annual premium.
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What maturity benefit do I get in ULIP?
Upon maturity, you get the death benefit or the fund value, whichever is higher.
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Is ULIP investment a good idea?
Yes, it is. With ULIP, you don’t have to buy different products for life cover and investment. You get it in a single product. With market-linked returns, you have a higher chance of building a sizeable corpus for important life goals, if you stay invested for the long term.
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When can I withdraw from a ULIP?
You can withdraw from your ULIP policy only after it has completed the mandatory lock-in period of 5 years. In other words, you can’t withdraw before 5 years from the date of investment.
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What is the meaning of fund value in ULIP?
In ULIPs, you invest in various funds as per your choice such as equities, debt and hybrid. The total monetary worth of the funds is known as the fund value.
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How much risk is involved while investing in ULIP?
The risks depend on your choice of funds in an ULIP. Risks are higher with equity funds and lower with debt funds.
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What is the minimum-lock in period for ULIPs?
5 years. You can’t exit or make partial withdrawals before 5 years from the date of investment.
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What are the various charges associated with ULIPs?
There are around 5 charges involved in ULIP plans - premium allocation charges, policy administration charge, mortality charge, fund management charge and surrender charge. For a long-term plan, people should not bother about these charges as the kind of returns these plans give in a long run should be able to recover all the charges borne in initial years.
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1The tax benefits are subject to changes in the tax laws. You are advised to consult your tax advisor for the same.
Disclaimer
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 the fifth year from inception. Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies 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 the investment fund and factors’ influencing the capital market and the insured is responsible for his or her decision. Aditya Birla Sun Life Insurance Company Limited is only the name of the Insurance Company 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. The various funds offered under this contract are the names of the funds and do not any way indicate the quality of these plans, their future prospects and returns. The Past performance of the Unit linked fund(s) of the company is not necessarily indicative of the future performance of any of these Unit linked fund(s).
The Trade Logo "Aditya Birla Capital" Displayed Above Is Owned By ADITYA BIRLA MANAGEMENT CORPORATION PRIVATE LIMITED (Trademark Owner) And Used By ADITYA BIRLA SUN LIFE INSURANCE COMPANY LIMITED (ABSLI) under the License. For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding the sale. An extra premium may be charged as per our then existing underwriting guidelines for substandard lives, smokers or people having hazardous occupations etc. The insurance cover for the life insured (including minors) will commence on the policy issue date. For further details please refer to the policy contract. Tax benefits are subject to changes in the tax laws. For more details and clarification call your ABSLI Insurance Advisor or visit our website and see how we can help in making your dreams come true.
Aditya Birla Sun Life Insurance Company Limited (Formerly Birla Sun Life Insurance Company Limited) Registered Office: One World Center Tower 1, 16th Floor, Jupiter Mill Compound, 841, Senapati Bapat Marg, Elphinstone Road, Mumbai - 400013.Toll free no: 1800-270-7000 IRDAI Reg No. 109 www.adityabirlasunlifeinsurance.com CIN: U99999MH2000PLC128110 VER2/FEB/2020
ADV/9/20-21/1059
