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Aditya Birla Sun Life Insurance Company Limited
Aditya Birla Sun Life Insurance Company Limited
What are the key benefits of ABSLI ULIP Plans?
Every ABSLI ULIP is built on four pillars: goal-based flexibility, long-term wealth creation, comprehensive life protection, and maximum tax efficiency.
10 Plan Options
Choose from 10 distinct ULIPs tailored for retirement, child education, wealth creation, her growth, and high-net-worth goals, the widest ULIP portfolio from a single insurer.
Dual Tax Benefit
Premium deductible up to ₹1.5 lakh under Section 123 of the Income Tax Act, 2025. Maturity proceeds completely tax-free under Section 11 read with Schedule II of Income Tax Act, 2025. Save up decent money annually in the 30% tax bracket.
ESG Fund: Unique Differentiator
ABSLI is among the few insurers offering an Environmental, Social, Governance (ESG) Fund option, enabling socially responsible investing within a ULIP.
Up to 64 Critical Illness Conditions
Add the optional Comprehensive Critical Illness Rider covering up to 64 conditions (Platinum variant; Silver covers 10, Gold covers 25). Benefit paid on diagnosis, not death, to manage medical costs without depleting your ULIP corpus.
Tax-Free Fund Switching
Switch between equity, debt, hybrid, and ESG funds up to 12 times per year without attracting capital gains tax, a key advantage over mutual funds.
Lifecycle Investment Option
Let ABSLI automatically shift your fund allocation from growth-oriented equity to capital-protection debt as you approach your policy maturity or retirement goal.
100% Online Purchase
Compare, calculate, and buy any of the 10 ABSLI ULIP plans entirely online. Paperless KYC. Instant policy issuance. No agent commission markup.
What are the ULIP tax benefits?
Yes, ULIP premiums qualify for tax deduction under Section 123 of the Income Tax Act, 2025 (which corresponds to Section 80C of the Income Tax Act, 1961), up to ₹1.5 lakh per year. Maturity proceeds are completely tax-free under Section 11 read with Schedule II of the Income Tax Act, 2025 (corresponding to Section 10(10D) of the Income Tax Act, 1961). Fund switches within the ULIP are also tax-free, a unique advantage over mutual funds.
Section 123 (Income Tax Act, 2025)
Annual premium paid for ULIP plans is deductible up to ₹1.5 lakh under Section 123 of the Income Tax Act, 2025 (effective from 1st April 2026, corresponding to Section 80C of the erstwhile Income Tax Act, 1961). For a taxpayer in the 30% bracket (including 4% health & education cess), this means maximum tax saving per year. GST on premiums is included in the eligible deductible amount.
Section 11 read with Schedule II (Income Tax Act, 2025)
The maturity benefit (fund value) received from a ULIP is completely exempt from income tax under Section 11 read with Schedule II of the Income Tax Act, 2025 (effective from 1st April 2026, corresponding to Section 10(10D) of the Income Tax Act, 1961), provided the annual premium does not exceed 10% of the Sum Assured (for policies issued after 1 April 2012). Fund switches within the ULIP are also entirely tax-free, unlike mutual fund switches, which trigger capital gains tax.
Frequently Asked Questions about ULIP Plans
A Unit Linked Insurance Plan (ULIP) is a Life Insurance policy that combines life cover with market-linked investment. A portion of your premium provides life insurance (mortality charges), while the balance is invested in equity, debt, hybrid, or ESG funds of your choice. Your investment is converted into units at the fund’s NAV. At maturity, you receive the accumulated fund value, which is completely tax-free under Section 11 read with Schedule II of the Income Tax Act, 2025 (corresponding to Section 10(10D) of the Income Tax Act, 1961). On death during the policy term, your nominee receives the higher of the sum assured or the fund value.
The best ULIP depends on your financial goal, risk appetite, and investment horizon. Some of the plans include ABSLI Param Suraksha: High Protection ULIP, ABSLI Wealth Smart Plus: Tax-Smart Investment ULIP, ABSLI Fortune Wealth Plan: Balanced Growth ULIP, ABSLI Platinum Gain Plan: Aggressive Growth ULIP, ABSLI Wealth Aspire Plan: Long-Term Goal ULIP, ABSLI Wealth Secure Plan: Whole Life ULIP, ABSLI Wealth Infinia: Milestone-Based ULIP, ABSLI Salaried Suraksha ULIP: High Net Worth ULIP, Her Growth - ULIP Plan for Women, and ABSLI Wealth Max Plan: Single Premium ULIP. Use ABSLI’s online ULIP calculator to identify the right plan based on your specific age, goal, and premium affordability.
ULIP returns are market-linked and depend on your fund allocation and market performance. Historically, equity-oriented ULIP funds have performed decently over 10+ year investment horizons. Debt funds typically return 6–8% p.a., while balanced/hybrid funds average 8–10% p.a. Past performance is not indicative of future returns.
ULIPs offer three layers of tax benefit: (1) Section 123 (Income Tax Act, 2025): Premiums deductible up to ₹1.5 lakh/year. For a 30% bracket taxpayer, this saves up to ₹46,500 annually (including 4% cess). (2) Section 11 read with Schedule II (Income Tax Act, 2025): Maturity proceeds completely tax-free, provided annual premium does not exceed 10% of Sum Assured (for policies issued after 1 April 2012). (3) Tax-free fund switching: Switching between ULIP funds attracts zero tax. Tax benefits are subject to changes in tax laws. Consult your tax advisor for personalised guidance.
No. IRDAI regulations mandate a minimum 5-year lock-in period for all ULIPs in India. During this period, you cannot make partial withdrawals or fully surrender the policy. If you surrender your ULIP within 5 years, the fund value is paid only after the lock-in period ends and surrender charges will apply. After completing 5 years, most ABSLI ULIP plans allow partial withdrawals (typically up to 20% of fund value annually) and full surrender if needed. Staying invested for 10–20 years maximises the power of compounding and fully realises the wealth-creation potential of your ULIP.
Yes. ULIP plans offer free fund switching flexibility. Most ABSLI ULIPs allow up to 12 free fund switches per year. You can move your allocation between equity, debt, hybrid, and ESG funds online through the ABSLI customer portal. Switches are executed at the prevailing NAV of both funds and are completely tax-free. ABSLI also offers the Lifecycle Investment Option, which automatically shifts your allocation to conservative debt funds as the policy approaches maturity. Review your fund allocation annually and rebalance based on goal proximity, market outlook, and risk appetite.
Both approaches have merit depending on your profile. Choose ULIP if you want a single bundled solution with tax-free maturity and forced investment discipline. Choose Term Insurance if you want maximum life cover at the lowest cost. ULIPs are particularly advantageous for investors who find it difficult to maintain separate SIP discipline, value the tax-free maturity benefit under Section 11/Schedule II (Income Tax Act, 2025) and want to avoid capital gains tax on fund switches. Use ABSLI’s ULIP suitability assessment or consult a financial advisor before deciding.
The outcome depends on when you stop: (1) Within 5-year lock-in: Policy becomes discontinued, fund value is held and paid only after the lock-in period ends, no life cover, and surrender charges apply. (2) After 5 years but before completing premium payment term: You can opt for a reduced paid-up policy with lower sum assured, continue with the existing fund value invested, or surrender and receive the fund value. It is advisable to continue premium payments as planned to maximise long-term compounding. If facing financial difficulty, consider reducing fund allocation to debt funds for stability rather than discontinuing. Contact ABSLI customer service (1800-270-7000) to explore options before discontinuing.
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Unit Linked Insurance Products are subject to market risks. The investment risk in the investment portfolio is borne by the policyholder. Please read the sales prospectus carefully before investing. Linked Insurance Products do not offer any liquidity during the first five years of the contract. Tax benefits are subject to changes in tax laws; kindly consult your tax advisor. Section 11 read with Schedule II (Income Tax Act, 2025) benefit is available subject to fulfilment of conditions specified therein. Past performance is not indicative of future returns. The assumed rates of return used in illustrations are only illustrative and are not guaranteed. GST as applicable will be charged on premiums and charges. Insurance is the subject matter of solicitation.
i. Linked Insurance products are different from the traditional insurance products and are subject to the risk factors.
ii. The premium paid in linked Insurance Policies are subject to investment risks associated with capital markets. 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.
iii. _ is only the name of the Life Insurance Company and is only the name of the linked Insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
iv. Please know the associated risks and the applicable charges, from your Insurance agent or intermediary or policy document issued by the insurance company.
v. 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.
vi. Past performance is not necessarily an indication of future performance.
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