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Aditya Birla Capital LimitedAditya Birla Capital Limited (“ABCL”) is a listed systemically important non-deposit taking Non-Banking Financial Company (NBFC) and the holding company of the financial services businesses. ABCL and its subsidiaries/JVs provides a comprehensive suite of financial solutions across Loans, Investments, Insurance, and Payments to serve the diverse needs of customers across their lifecycles. Powered by over 66,000 employees, the businesses of ABCL have a nationwide reach with over 1,742 branches and more than 200,000 agents/channel partners along with several bank partners.
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What is ULIP (Unit Linked Insurance Plan)?
A ULIP (Unit Linked Insurance Plan) is a dual-purpose financial product that provides life insurance protection along with market-linked investments. The premiums you pay are divided between providing life cover and investing in various fund options, such as equity, debt, or balanced funds.
The beauty of a ULIP insurance plan lies in its flexibility. You can switch funds based on market performance or changing goals. Whether you want to build a retirement corpus or create wealth for your child’s education, ULIPs can help. Most plans also offer tax benefits under Section 80C and Section 10(10D).
These are ideal for long-term investors who want both protection and growth. With the ability to track fund performance and adjust your portfolio, ULIP investments provide more control than traditional insurance plans.
● Ideal for goal-based financial planning like retirement or a child’s education
● Transparent structure with regular fund performance updates
● Option to make partial withdrawals after the lock-in period
Dual Purpose
Get insurance and investment in one convenient package
Flexibility
Choose your own policy term, funds, and investment style
Fund Switching
Switch between different funds to realign your investment strategy
Riders
Enhance the coverage of your insurance with add-on benefits
Higher Returns
Expect to get potentially higher returns with market-linked funds
Tax Benefits*
Get tax benefits* on premiums, partial withdrawals and even death benefit
How to Choose the Best ULIP Plan?
When selecting the best ULIP plan for investment, it’s crucial to compare various aspects such as funds, charges, tenure, and performance. Below is a helpful breakdown:
| Comparison Criteria | What to Check |
|---|---|
| Financial Objectives
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Match the ULIP’s long-term potential with your goals (retirement, child’s future). |
| Risk Appetite
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Choose equity (high risk), debt (low risk), or balanced funds accordingly |
| Fund Options
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Look for a range of funds (equity, debt, hybrid) for portfolio diversification. |
| Charges & Fees
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Compare fund management, premium allocation, and administration charges. |
| Lock-in Period
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Ensure you’re comfortable with the 5-year lock-in and your liquidity needs. |
| Fund Performance
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Review past performance of available funds to assess consistency in returns. |
| Tax Benefits
|
Verify Section 80C and 10(10D)* benefits for tax savings. |
| Policy Transparency
|
Read policy documents to understand terms, benefits, and exclusions. |
Best ULIP Plans in India 2026 by ABCD
Looking for the best ULIP in India? Explore our top-performing ULIP plans that balance returns, protection, and flexibility, tailored for various life goals.
Our ULIP At A Glance
A plan that aims for wealth generation with market-linked investments while keeping you covered under life insurance. It’s perfect for someone with long-term goals.
ABSLI Wealth Aspire Plan
UIN: 109L100V05
KEY FEATURES 
- Two plan options to choose from
- A choice of four investment strategies
- 18 fund options for a diversified portfolio
Minimum Premium
₹40,000/ Year
Sum Assured
Minimum Rs. 4,00,000
Add Riders for Extra Protection
Steps to Buy ULIP Plan Online
Visit the ULIP Section
Go to the ULIP plans section on the ABCD website or open the ABCD app on your phone.
Compare and Choose a Plan
Browse different plans and compare them based on fund options, charges, features, and return potential.
Use the ULIP Calculator
Estimate your future returns by entering your premium amount, policy term, and investment strategy into the ULIP calculator.
Fill in Details and Upload Documents
Enter basic personal information, select sum assured and tenure, then upload KYC documents for verification.
Make Payment and Get Instant Policy
Complete the online payment securely. Your ULIP policy will be issued instantly with 24x7 access to fund performance, switches, and policy details through the ABCD app.
Things to Know Before Investing in a ULIP Plan
Check Your Eligibility
Before you start investing in ULIPs, ensure you qualify and have the necessary documents.
Eligibility
- Age 1 month to 55 years.
- Citizenship Indian citizen residing in India at the time of purchase.
- Income Varied criteria depending upon plan.
- Medical tests Underwriting of genuine medical history.
- Job profile The level of occupational risk needs to be assessed.
- Smoking habits Affect your premium
Documents Needed
- Proposal form
- Age proof
- Photo identity proof
- Address proof
- Medical report
- Income proof
- PAN/ Aadhaar card
Get Insured In for Ulip Plans 5 Easy Steps
Pick a plan that fits your needs
Share the required personal details
Select sum assured, riders, payment cycle, etc.
Go through the coverage and exclusions
Complete payment and submit documents
Go through the coverage and exclusions
Complete payment and submit documents
Things To Keep In Mind
As per the Income Tax Act, 1961
- Under Section 80C : Deduction on premium payments up to ₹1,50,000
- Under Section 10(10D)** : Exemption on death benefit
How to claim
- This applies to death claims as well as rider claims
- You can make a claim online or at a branch
- Suicide and self-harm
- Death due to participation in criminal activities
- Death due to racing or other dangerous sports
Customer Satisfaction Stories
Hear from our customers what they have to say about their experience.
Due to seamless branch support and timely communication from ABSLI, my maturity payout process was quite smooth.
Aditya Birla Sun Life Insurance Customer
Haryana, India
Aditya Birla Sun Life Insurance Customer
Entire surrender process was quite smooth with timely documentation and payout. Great experience!
Aditya Birla Sun Life Insurance Customer
Gujarat, India
Aditya Birla Sun Life Insurance Customer
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Understanding ULIP
What is a ULIP?
-
- ULIP stands for "Unit Linked Insurance Plan." It is a unique financial product that combines both insurance and investment components in a single plan. It’s best for people who want to secure their family’s future but also want to grow wealth with time.
- Insurance: A portion of your premiums in ULIP goes towards providing life cover which means it offers all the benefits of a regular life insurance plan such as financial security for the family, legacy planning, tax benefits* etc.
- Investment: The remaining portion of the premium is invested into various funds such as equity, debt or a combination of the two based on your risk appetite. You have complete control over where you want to invest and you can even switch funds later if you want to.
- Wealth creation: Since ULIP investments are mostly market-linked, they have the possibility of performing better than other life insurance products in terms of wealth creation. But it should be noted that it also comes with market-related risks and thus, you should invest based on your goals and risk appetite.
Who should invest in a ULIP?
ULIPs are not a one-size-fits-all product. They’re designed for individuals with specific financial goals, investment discipline, and a long-term mindset. Their flexibility in fund choices and premium redirection further enhances suitability across different life stages and income groups. Here's who can benefit the most from investing in ULIPs:
Salaried professionals
ULIPs are ideal for salaried individuals who seek tax benefits and want to build a retirement or emergency corpus.
High-net-worth individuals (HNIs
HNIs can use ULIPs for diversified, tax-efficient wealth building over time, especially due to fund switching and market-linked returns.
Parents
Parents can plan long-term educational goals or a financial cushion for their children through disciplined ULIP investments.
First-time investors
Those new to financial products can benefit from the dual advantage of insurance and investment with controlled risk.
Factors to consider before investing in a ULIP
Before choosing a ULIP insurance plan, it’s essential to do a thorough evaluation of your financial goals, risk profile, and investment horizon. Here's a detailed breakdown of the main factors you should consider before investing in a ULIP:
Investment horizon
ULIPs are best suited for long-term financial goals spanning 10–15 years to truly benefit from compounding and market growth.
Risk tolerance
Your comfort with equity or debt investments will determine the right fund mix—choose based on your ability to handle volatility.
Life goals
Align your ULIP investment with specific goals like retirement planning, buying a house, or funding your child’s higher education.
Charges and fees
Evaluate premium allocation charges, fund management fees, mortality charges, and administrative fees that impact net returns.
Fund performance and flexibility
Check the past performance of available funds and assess if the ULIP allows sufficient flexibility to switch or redirect investments.
What are the key benefits of ULIP?
Tax-efficient investment
Get tax deductions up to ₹1.5 lakh under Section 80C and tax-free maturity under Section 10(10D), subject to prevailing conditions.
Wealth creation potential
Invest in equity, debt, or hybrid funds to grow your money over time based on your risk profile and market trends.
Built-in life cover
ULIPs offer life insurance coverage to ensure your family's financial safety in your absence.
Flexible premium and investment control
You can choose your premium amount, fund allocation, and switch between funds based on your goals.
Liquidity after lock-in
Partial withdrawals are allowed after the 5-year lock-in, offering flexibility for urgent financial needs.
Are there risks involved in investing in a ULIP?
Yes, ULIP investments carry certain risks as they are market-linked instruments. Your investment returns in ULIPs will largely depend on the performance of the funds chosen, be it equity, debt, or balanced options. Here are some of the key risks involved—and how you can mitigate them:
Market volatility
Fund value may fluctuate with market movements, especially if you invest in high-risk equity funds.
Non-guaranteed returns
Unlike PPFs or FDs, ULIPs don’t guarantee returns. Growth depends entirely on how well the underlying assets perform.
Limited early liquidity
A mandatory 5-year lock-in means no partial withdrawals or fund access in the short term.
Mitigation strategies
Invest in balanced or debt funds for stability, review fund performance regularly, and avoid exiting early for better outcomes.
What are the tax benefits* of ULIP?
One of the key attractions of ULIP plans is their tax efficiency. ULIPs offer tax benefits both at the time of investment and at maturity—making them one of the few financial instruments that provide an Exempt-Exempt-Exempt (EEE) benefit. Here’s how you benefit:
Tax deduction under Section 80C
You can claim a deduction of up to ₹1.5 lakh on your annual premium paid towards the ULIP plan.
Tax-free maturity benefit under Section 10(10D)
Subject to conditions, the final payout you receive on maturity is completely tax-exempt.
Long-term tax savings
By investing consistently over the long term, you not only save taxes annually but also grow your wealth without future tax liabilities.
Example
Investing ₹1 lakh annually for 10 years can reduce your taxable income each year and the maturity corpus will be tax-free if conditions are met.
What makes a ULIP so flexible?
Flexibility is one of the biggest strengths of a ULIP policy. It allows policyholders to actively manage their investment based on evolving financial goals, market movements, or life events. Let’s look at how ULIPs offer flexibility:
Fund switching
You can switch between equity, debt, or hybrid funds based on market conditions or your financial goals—often without additional charges.
Premium redirection
You can redirect future premium payments into different funds without changing your existing investment or policy structure.
Partial withdrawals
After the 5-year lock-in period, you can withdraw money for emergencies or important life events without disrupting your entire plan.
What are the different types of ULIPs?
ULIPs are versatile products with multiple variations that can suit different investors. Broadly, they can be categorised based on the type of death benefit and the type of investment fund. Here are the major ULIP categories:
Type I ULIPs
Pay either the fund value or sum assured, whichever is higher to the nominee in case of policyholder’s death.
Type II ULIPs
Pay both the fund value and sum assured to the nominee, making it more beneficial in terms of death benefits.
Fund types
Equity funds
Suitable for aggressive investors seeking high returns.
Liquid Funds ULIPs
It invests in low-risk, easily redeemable assets.
Debt funds
Ideal for conservative investors focused on capital preservation.
Balanced funds
Offer a mix of equity and debt for moderate risk and stable growth.
How to calculate returns with a ULIP Calculator?
A ULIP calculator is a useful tool that helps you estimate your potential returns before investing in a ULIP plan. Here's how you can use it effectively:
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Enter Your Annual Premium
Start by entering the ULIP premium amount you plan to invest annually. This premium will be split between investment and life cover.
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Choose Your Expected Rate of Return
Select an estimated rate of return based on your preferred fund type—equity, debt, or balanced. Equity funds may offer higher returns but carry more risk, while debt funds are more stable.
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Select Policy Tenure and Life Cover
Next, choose how long you wish to stay invested and the life insurance cover you want under the ULIP.
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View the Maturity Value and IRR
The calculator will display the projected maturity value of your ULIP and the internal rate of return (IRR).
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Compare Plans and Make Informed Decisions
You can now compare different ULIP plans to choose one that aligns with your financial goals and risk appetite.
Solutions-Oriented Children Fund
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Targeted maturity for funds
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Hybrid portfolio diversifies risk
Health and Wellness Plans
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Variety of plans available
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Complete coverage for protection
FAQs on ULIP
ULIP, or 'Unit Linked Insurance Plan' is a market-linked insurance plan that offers both life insurance and investment opportunities. A part of the premium is used to pay a lump sum of money to your beneficiaries in case of your untimely demise during the term of the policy, and the remaining part of the premium is invested in a variety of funds, such as equity funds, debt funds, or a combination of both. You will receive the fund value when the policy matures.
ULIP returns are calculated based on the Net Asset Value (NAV) of the underlying fund and the number of units allocated to your policy. When you pay a premium, a portion goes toward life cover, and the rest is invested in equity, debt, or hybrid funds. Over time, the fund's performance determines the NAV.
The value of your investment at any point is: ULIP Value = Number of Units × NAV
Charges such as fund management fees, mortality charges, and policy administration fees are deducted periodically, which can affect the overall return. ULIP calculators use your inputs like premium, tenure, fund type, and expected return to estimate the maturity amount.
ULIPs and FDs serve different purposes. ULIPs offer market-linked returns with life insurance cover, making them suitable for long-term wealth creation and protection. Fixed Deposits (FDs), on the other hand, provide guaranteed returns with low risk but do not offer insurance benefits or market growth potential. If you’re looking for tax-saving, higher potential returns, and long-term investment, ULIPs may be better. But if safety, liquidity, and stable returns are your priority, FDs could be more appropriate. Your choice depends on your financial goals, risk appetite, and investment horizon.
Yes, ULIPs offer tax benefits under Section 80C of the Income Tax Act, allowing deductions up to ₹1.5 lakh on the premium paid. Additionally, the maturity proceeds are tax-free under Section 10(10D), provided the annual premium does not exceed ₹2.5 lakh (as per latest tax rules).
However, if the premium crosses this limit, the maturity amount may be taxable as capital gains. ULIPs also offer tax-free fund switches between equity and debt options. Always check current tax rules or consult a financial advisor before investing to understand the full scope of benefits.
Here’s a complete picture of how a ULIP works:
1. Premium payment: The policyholder pays a regular premium to the ULIP plan.
2. Fund allocation: A portion of the premium is allocated towards life insurance coverage, and the rest is invested in funds of the policyholder's choice, such as equity, debt, or a mix of both.
3. Fund performance: The performance of the funds depends on market conditions and the underlying assets.
4. Charges: ULIPs have charges such as premium allocation charges, mortality charges, fund management charges, and surrender charges.
5. Life insurance coverage: ULIPs offer life insurance coverage, providing financial security to the policyholder's family in case of their death.
6. Investment options: ULIPs offer various investment options, such as equity funds, debt funds, balanced funds, and others. The policyholder can choose the type of fund based on their risk appetite and financial goals.
7. Flexibility: Policyholders can choose the type of funds they want to invest in based on their risk appetite and financial goals. Additionally, policyholders can switch between funds according to market conditions or their financial objectives.
8. Lock-in period: ULIPs have a lock-in period of five years, which means the policyholder cannot withdraw the funds before the end of the lock-in period.
9. Partial withdrawals: Policyholders can make partial withdrawals after the completion of the lock-in period to meet any financial emergencies.
Like any other insurance plan, purchasing a ULIP comes with a few charges. They are as follows:
• Premium allocation charges: A one-time charge deducted from the premium to cover policy issuance and administration costs.
• Mortality charges: The cost of life insurance coverage deducted from the premium based on the policyholder's age, health, and life expectancy.
• Fund management charges: The cost of managing the funds invested in the ULIP plan is deducted from the fund value as a percentage of the total assets under management.
• Policy administration charges: The cost of administering the policy is deducted from the premium.
• Surrender charges: A deduction from the fund value if the policyholder surrenders the ULIP plan before the end of the lock-in period. Surrender charges are typically high in the initial years of the policy and reduce over time.
• Switching charges: A charge levied when the policyholder switches between funds.
Aditya Birla Capital (ABSLI) currently offers nine ULIPs:
• ABSLI Fortune Wealth Plan: 2 plan options with Guaranteed Additions. 5 investment options and a choice of 18 funds
• ABSLI Platinum Gain Plan: 3 premium bands + flexibility to pick from 5 different investment strategies and 18 fund options. Wealth Boosters + Loyalty Additions
• ABSLI Smart Growth Plan: 5 investment strategies and 16 funds + Flexibility for fund switching + Wealth boosters and loyalty additions + Return of mortality charges at maturity
• ABSLI Wealth Aspire Plan: 2 plans and 4 investment options + Flexibility for partial withdrawals + Guaranteed additions + Flexibility to add top-ups
• ABSLI Wealth Secure Plan: 3 investment options + Guaranteed additions + Flexibility to add top-ups + Surrender Benefits
• ABSLI Wealth Assure Plus: 5 investment strategies and 16 funds + Premium waiver on critical illness + Guaranteed additions + Custom benefits with riders
• ABSLI Fortune Elite Plan: Flexible premium paying terms + Partial withdrawal benefits + Guaranteed additions + Maturity benefits
• ABSLI Wealth Max Plan: Invest once and get benefits for the full policy term + Guaranteed additions + Top-up options + 16 funds under the self-managed option
• ABSLI Wealth Infinia: Return of mortality and premium allocation charges + Systematic withdrawal facility + Wealth boosters and loyalty additions + 5 investment strategies and 16 funds
ULIP is a great investment option for someone looking for protection and wealth creation in one plan. Here are some of its most popular features and benefits:
• Dual benefits: ULIPs offer both life insurance coverage and investment opportunities. This means that you can get financial protection for your loved ones and grow your wealth at the same time.
• Flexibility: ULIPs offer flexible investment options. You can choose the type of funds to invest in based on your risk appetite and financial goals. You can also switch between funds as needed.
• Wealth creation: ULIPs have the potential to provide higher returns than traditional insurance products due to their investment component. This makes them a good option for individuals who want to grow their wealth in the long term.
• Transparency: ULIPs offer transparency in terms of their investment performance, charges, and fees. This helps you make informed investment decisions.
• Financial discipline: ULIPs encourage financial discipline as you need to pay regular premiums towards the policy. This can help you develop the habit of saving and investing.
• Tax benefits*: ULIPs offer tax benefits* under the Income Tax Act of India. You can get a tax deduction on the premiums you pay, and the maturity or death benefit you receive is also tax-free.
Yes, partial withdrawal is generally allowed in ULIPs after the completion of the lock-in period, which is typically five years. You can withdraw a portion of the accumulated fund value while keeping the policy active. The specific rules, limits, and conditions for partial withdrawals may vary depending on the plan and the terms of the policy.
It's important to note that partial withdrawals can impact the future growth of the investment and the overall policy value. Additionally, there may be a minimum and maximum limit on the amount that can be withdrawn, and some ULIPs may impose charges or fees for partial withdrawals. You should carefully review the terms and conditions of your ULIP policy and consult with the insurance provider or advisor before making a partial withdrawal to ensure you understand the implications and available options.
In ULIPs, fund switching is a feature that allows you to reallocate your investments among different available funds according to your changing financial goals and risk tolerance. To initiate a fund switch, you simply need to inform your insurance provider or access the policy's online portal. You can choose the specific funds to which you want to transfer your investments, and the provider will facilitate the switch. This flexibility enables you to adapt your ULIP portfolio to match evolving market conditions and your investment preferences over time, helping you make the most of your investment in alignment with your financial objectives.
You can make a claim for your ULIP in the following 7 steps:
Step 1 - Gather the required documents: This includes your policy document, death certificate (for the death benefit claim), proof of identity, proof of age, proof of address, and bank account details (for electronic fund transfers).
Step 2 - Contact us: You can reach us by phone, email, through our website, or by visiting a branch office, and inform us if you want to file a claim.
Step 3 - Get the claim forms: We will provide you with the claim forms that you need to fill out. We can either send the physical form via post, or you can download it from our website, or collect it from a branch office.
Step 4 - Complete the claim forms: Be sure to fill out the forms accurately and completely. Include all of the required information, such as your policy number, personal details, etc.
Step 5 - Submit the claim forms and documents: You can submit your claim forms and necessary documents by post, email, through our website, or at a branch office.
Step 6 - Track your claim: Once you submit your claim, you can track its status through our website or by contacting our customer support. Be prepared to provide additional information or documents if requested.
Step 7 - Receive your benefits: Once your claim is approved, your payout will be processed according to your chosen option.
ULIP riders are additional benefits that can be added to the base ULIP for a nominal additional cost. Some common ULIP riders are:
• ABSLI Accidental Death Benefit Rider Plus: Provides 100% of the rider sum assured as an additional lump sum amount in case of death due to an accident of life insured.
• ABSLI Waiver of Premium Rider: Waives off all future premiums of the base plan and the attached riders throughout the rest of the premium payment in case of a diagnosis of 4 specified major illnesses, disability, or death.
For further details regarding the above-mentioned riders, please refer to the respective rider brochure(s) available on our website.
ULIPs are best suited for investors with a medium- to high-risk appetite and a long investment horizon. This is because ULIPs invest a portion of the premium in equity funds, which have the potential to generate higher returns over the long term. However, equity funds are also more volatile than debt funds, so investors should be comfortable with risk before investing in a ULIP.
ULIPs are also a good option for investors who are looking for both insurance and investment. ULIPs offer life insurance coverage, which can protect your loved ones financially in case of your untimely demise. Additionally, ULIPs offer tax benefits* under the Income Tax Act of India.
To maximise ULIP returns, policyholders should choose a balanced portfolio of funds that includes both equity and debt funds. Additionally, regular monitoring of the portfolio and diversification can help maximise returns from ULIPs in India.
Even though ULIP returns are subject to tax based on the policyholder's income tax slab, the maturity or death benefit received under the ULIP is tax-free under Section 10(10D)** of the Income Tax Act.
Yes. According to Section 80(C) of the Income Tax Act 1961, you can get tax deductions for premiums paid on ULIP plans, with a limit of either the actual paid amount or ₹1.5 lakh, whichever is lower. Additionally, if you've included a critical illness rider, you can also claim deductions under Section 80(D).
Yes, if the premium that you pay towards ULIPS exceeds ₹ 2.5 lakh, then the returns that you get will be taxed. The rate of tax will depend on your ULIP composition.
Yes, you can choose to cancel your ULIP within the five-year lock-in period.
SIPs and ULIPs differ significantly. SIPs don’t give you life coverage, whereas ULIPs provide it. Similar to mutual funds, ULIPs allocate a portion of your investments to various funds, aiming for higher returns. The remaining premium serves as life insurance coverage.
Some of the most common myths around ULIP are as follows
- ULIPs are costly
- ULIPs are risky
- ULIPs are not flexible
- ULIPs give low returns
- Your life cover could be reduced in ULIPs
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Aditya Birla Capital offers IRDAI-approved ULIP plans. Features, returns, and tax benefits vary by policy. This content is educational, not financial advice. Read policy documents carefully. Tax benefits under Sections 80C and 10(10D) depend on prevailing laws; consult a tax advisor. ABCD is not liable for decisions based on this information. Visit https://www.adityabirlacapital.com/ for details.