Unit Linked Insurance Plan
What is Unit Linked Insurance Plan (ULIP)?
A Unit Linked Insurance Plan (ULIP) is a type of life insurance policy that combines both insurance protection and investment opportunities. It allows you to invest in various asset classes depending on your risk tolerance and financial goals. However, it's important to note that ULIPs carry investment risks, as the value of your investments may fluctuate.
ULIP plans have two main components: the insurance component and the investment component. The insurance part offers life coverage, while the investment part helps grow your savings based on the performance of the selected asset classes.
The division of your premium between the insurance and investment portions depends on the specific terms of your ULIP and your individual preferences.
Disclaimer: In unit-linked policies, the policyholder assumes the investment risk in the investment portfolio.
Features of ULIP Plans
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Dual Benefit
ULIPs provide both life insurance coverage and investment opportunities. A portion of your premium goes toward life insurance, while the remainder is invested in different asset classes like equity, debt, or balanced funds.
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Market-Linked Returns
The returns on ULIPs are linked to the performance of the chosen asset classes. The value of your investment can rise or fall depending on market movements.
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Fund Switching Option
Most ULIPs offer the flexibility to switch between different funds (equity, debt, or balanced) during the policy tenure without incurring additional charges, depending on the policy terms.
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Partial Withdrawals
After a certain lock-in period (5 years), ULIPs allow partial withdrawals from your accumulated fund, giving you liquidity in case of emergencies.
Explore our Insurance Solutions
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ULIP Plans
HDFC Life Smart Protect Plan
UIN: 101L175V05
A plan that offers protection coverage while supporting your long-term wealth creation aspirations.
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- Receive a Minimum Assured Benefit9 in the form of capital guarantee, regardless of market fluctuations.
- Select from a range of Funds10 to maximize your investment returns.
- Enhance the value of your fund over time with Loyalty Additions.
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ULIP Plans
HDFC Life Click 2 Invest ULIP plan
UIN: 101L100V05
Grow your investments without compromising your family’s security.
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- This product provides market-linked returns while ensuring financial security for your family.
- Enjoy potential tax benefits in accordance with prevailing tax laws8.
- Choose from multiple fund options tailored to suit your investment preferences.
- Single payment options are available for added convenience.
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1. Provided all due premiums have been paid and the policy is in force.
2. Applicable for life long and long term income option.
3. Tax benefits are subject to provisions as per Income Tax Act, 1961. Tax laws are subject to changes.
4. This applies to Income Variant, whereby guaranteed income is paid on survival of Life Assured during the policy term, provided all due premiums are paid during the premium payment term.
5. ROP – Return of Premiums. This applies to Income variant, whereby all base premiums are returned to policyholder on survival of Life Assured at maturity, provided all due premiums are paid during the premium payment term.
6. Quantum of benefits is guaranteed irrespective of the experience.
7.Loyalty addition would be added to the fund starting from 10 Policy Anniversary for the other than ‘Single Premium’ policies paying Annualized Premium of ₹ 1,00,000 at least and for all the Single Premium paying policies.
8. As per Income Tax Act, 1961. Tax benefits are subject to changes in tax laws
9. Available under Level Cover with Capital Guarantee and Decreasing Cover with Capital Guarantee plan options.
10. With unlimited free Switching. Available under Level Cover and Decreasing Cover.
Frequently Asked Questions
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A ULIP is a life insurance plan that combines insurance coverage with investment in market-linked funds like equity, debt, or balanced funds.
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Your premium is split—one part provides life insurance, and the other is invested in funds of your choice, growing based on market performance.
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ULIPs have a mandatory lock-in period of 5 years, after which you can make partial withdrawals if needed.
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Yes, most ULIPs allow free fund switching between equity, debt, and balanced funds during the policy term.
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No, ULIP returns depend on market performance, so they are not guaranteed. The policyholder assumes the investment risk.
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ULIPs offer life insurance protection, market-linked investment growth, fund-switching flexibility, and tax benefits under applicable laws.
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