Ulip Plan:

Unit-linked Insurance Plans are market linked plans and gives dual benefit of insurance and investment. These are dynamic and flexible by nature to be fitted to all your needs - be it Wealth creation, planning for children education/marriage or securing your post retirement years.

In 2010, IRDA capped annualized charges of ULIPs at 2.25% for the first 10 years of policy term. At present, many insurance companies have reduced commissions and other charges, and as a result, some of the ULIPs launched in recent years are cheaper than mutual funds.


ULIP is one of the most lucrative options to invest in, because it gives dual benefit of insurance and investment. It gives you many benefits:

  1. Complete transparency.

  2. Flexibility to choose the investment options as per your risk profile.

  3. Fit to all your requirements

  4. Different premium paying frequencies.

  5. Providing Life cover while creating wealth.

  6. Systematic Investment.

  7. Additional covers can be taken by opting for riders.

  8. Dual tax benefits available under sections 80C, 80Dand 10 (10 D)

Types of ULIP Plans:

  1. Retirement: Policyholder gets the accumulated corpus amount in the form of annuities to a after retirement.

  2. Children Education: This plan offers money at key milestones of your kid's education and thus, ensures that any unforeseen circumstance doesn't hinder their development.

  3. Health Benefits: This plan provides financial assistance to meet medical contingencies.

  4. Wealth Creation: This plan multiplies wealth over a period of time. Best for people who are in late twenties and early thirties and by investing in this plan; they get flexibility to fund their any future financial goal.


Most of the plans today which are available in the market qualify for the tax deduction under Section 80C. Not only this, the lump sum amount received in the maturity of many plans is also Tax Free in nature under Section 10(10d). With this understanding the tax saving for any individual can vary from 10% to 33% depending on his/her income slab. Various ULIPs, traditional endowment plans becomes attractive keeping this feature in mind along with long term saving and investment of the hard earned money.

Investment Plans Classification:

  1. Premium allocation charges:Amount which is deducted from the premium for distribution and marketing expenses - initial expenses incurred by a company in issuing the policy. It is higher in the starting years and later it reduces by the third or fourth year.

  2. Management Charges: These charges are deducted on a regular basis to recover expenses incurred by insurer on servicing and maintaining a life insurance policy.

  3. Mortality Charges: These charges are deducted on a monthly basis. These are charges incurred by a life insurance company towards providing a life cover to an individual and they vary with the age and sum assured of the policy

  4. FUND Management Charges (FMC): Charges related to fund organizing and is usually in the range of 0.5% to 2%.

  5. Fund Switching Charge: : You can switch between the funds available for investment of premium paid. Most of the policies provide few free switches every year beyond which charges are levied.

  6. Surrender Charges: When an investor discontinues a plan prematurely within lock-in period (5 years currently), insurance provider charges a small fee for the same. This is preset by IRDA and hence common for all policies.

How do ULIPs function?

Unit-linked Insurance Plans are market linked plans and gives dual benefit of insurance and investment. In the starting years of the plan, a large amount of the premium is used for the plan expenses.

Units are issued for the amount invested in a fund of your choice; it can be debt, equity or a combination of both. The allocation of the units relies on the performance of the original fund. In the initial 2 to 3 plan years, because of the deduction of high expenses, the value of the fund would stay low.

Documents Required To Buy Pension Plan

  1. Age proof: Birth Certificate, 10th or 12th mark sheet, Driving License, Passport, Voter ID, etc.(Any one)

  2. Identity proof: Driving License, Passport, Voter ID, PAN Card, Aadhar Card, which proves ones citizenship

  3. Address proof: Electricity Bill, Telephone Bill, Ration Card, Driving License, Passport, should clearly mention the permanent address

  4. Income Proof: income proof specifying the income of the person buying the insurance

  5. Passport Size Photo: To have a record of the insured person's identity for future references.


Please note that the information provided is collected from sources publicly available & we believe to be reliable. The website doesn't warrant the accuracy, reliability & absolute information available on the website. Participation by site visitors or registered customers is on a voluntary basis. The policies are offered by various life Insurance & non-life insurance offering companies and sarvsurakshit.com does not seek to, either directly or indirectly, advise, offer, solicit or recommend that any person who is or proposes to become its member should purchase the Policy.

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