What is the average return on ULIP?

What is the average return on ULIP?

As per financial experts, an average ULIP plan produces an annual return of 10-12%, provided you stay invested in the ULIP policy for at least 10 years. This is the prime reason why ULIPs are considered an ideal investment for long term investors.

Is Unit-Linked Insurance Plan good?

ULIPs are best suited for individuals with a long term financial plan of wealth creation and insurance. Whether it is for retirement, children’s education or for other financial goals, a ULIP continued till maturity works as an advantage. It gives you the dual benefit of savings and protection, all in a single plan.

Which fund is best in ULIP?


ULIP Scheme Category 1Y
Bharti AXA Life – Merit Plus EDGE – Grow Money Plus Fund Debt short term funds 19.30%
Bharti AXA Life – Dream Life Pension – Grow Money Pension Debt short term funds 18.30%
Bharti AXA Life – Future Secure Pension – Grow Money Pension Plus Debt short term funds 18.80%

Is ULIP good for 5 years?

Stay invested for a long time: Though the lock-in period for ULIP products is five years, it is recommended that you stay invested for a longer period of time. The power of compounding works the best when you stay invested for a period of 10-15 years.

Can I withdraw ULIP after 5 years?

You can exit from ULIP after 5 years; however, it is not advisable even after lock-in period ends. To reap the benefits, you should continue and stay invested for a long period say 15-20 years. If you think that the funds are not performing, you may want to go for switching your funds.

How does unit linked insurance work?

How ULIPs Work. The insurer pools money from all the policyholders and invests the same in the funds chosen by them. Once the money is invested, the total corpus is divided into ‘units’ with a certain face value. Each investor is then allocated ‘Units’ in proportion to the invested amount.

How do unit linked funds work?

What is a unit-linked fund? A unit-linked fund pools your money and the money of other investors. It uses this money to invest in a wide range of assets that you might not have been able to invest in on your own. Each fund is divided into units of equal value and your money is used to buy these units.

Why is ULIP not good?

Union Budget 2021 declared that ULIPs will be taxed just like mutual funds, if the annual premium exceeds Rs 2.5 lakh. The maturity proceeds in such a case, will no longer be tax free but subject to tax in a similar way that mutual funds are taxed. As a result, they no longer offer the tax arbitrage.