5 Best ULIP Plans in India for Investment in 2018

by Editor

5 Best ULIP Plans in India for Investment in 2018

by Editor

by Editor

If you’re serious about investing your hard earned money to build a huge corpus, without having to worry about income tax, you NEED to start investing in the best ULIP plans.

We’re sure you wondering why not mutual fund schemes? After all, mutual fund schemes have long been the best way to turn savings into effective investment vehicles.

Here’s why: LTCG (Long-Term Capital Gains) tax was reintroduced in the Union Budget 2018. Therefore, any long-term capital gains on equities and equity mutual fund schemes, over Rs.1 lakh for a particular financial year, will be taxed at 10% flat, without any indexation benefit, effective April 1, 2018.

And more and more investors are moving away from mutual fund schemes, each passing day. Thankfully, life insurance companies have come up with new-age ULIP plans to help investors invest their hard-earned money, generate attractive returns, without having to worry about LTCG tax.

But here’s the deal: There are dozens of ULIP plans available at the disposal of the investor. And the sheer multiplicity of best ULIP plans in India can leave even the most seasoned of investors baffled and confused.

Well, that’s exactly what you’re going to learn in this article. In this post, we’ll pull the curtains and reveal 5 best ULIP plans in India. Let’s do this.

5 Best ULIP Plans in India for Investment in 2018

Best ULIP PlansFundsFree Fund Switches Premium Sum Assured
HDFC Life Click2Invest84Rs.12,00010 x Annualized Premium
Bajaj Allianz Life Goal Assure8 

Unlimited

Higher of 10x Annualised Premium OR 0.5 x policy term x Annualised Premium
Kotak Platinum Plan88Rs.8250-For age<45 – Higher of (10 X AP) or (0.5 X PTX AP) for age<45

-For age>45 – Higher of (7 X AP) or (0.25 X PTX AP)

Canara HSBC OBC Life Invest 4G7UnlimitedRs.5000-For age<45 – Higher of (10 X AP) or (0.5 X PTX AP) for age<45

-For age>45 – Higher of (7 X AP) or (0.25 X PTX AP)

Future Generali  Wealth Protect Plan612-25000 for Gold

-25001 for Platinum

-For age< 45 years, SA=Higher of (1/2 X Policy Tenure or 10) X Annualized Premium
-For age >=45 years, SA= Higher of (1/4 X Policy Tenure or 7) X Annualized Premium

HDFC Life Click2Invest ULIP

HDFC Life Click2Invest ULIP plan consistently ranks alongside some of the best ULIP plans in India. This amazing plan has been carefully designed and thoughtfully conceptualized by HDFC Standard Life Insurance Company to ensure maximum returns, comprehensive life insurance cover and tax saving opportunity for policyholders. The plan allows policyholders to choose policy terms from 5 to 20 years. The plan comes with a minimal charge structure and there are no charges for Policy Administration, Discontinuance of policy, and premium allocation.

Let’s look at the eligibility criteria of HDFC Life Click2Invest ULIP plan:

Eligibility Details

MinimumMaximum
Entry Age0 years65 years
Maturity Age18 years75 years
Policy Term5 years20 years
Premium amountRs.12,000No limit
Sum Assured10 x Annualized Premium
Premium Paying FrequencyRegular, Limited, Single

Key Features

HDFC Life Click2Invest ULIP Plan comes packed with a slew of features in order to help policyholders meet their future financial goals, effectively and easily. Some of the key features of this plan are:

Investment Fund Options

HDFC Life Click2Invest ULIP Plan makes it easy for its policyholders to take a pick from 8 market-leading fund options. Investors may pick investment fund options depending upon their risk appetite and future financial objectives. Fund options available under HDFC Life Click2Invest ULIP Plan are:

1. Equity Plus Fund
2. Diversified Equity Fund
3. Blue Chip Fund
4. Opportunities Fund
5. Balanced Fund
6. Income Fund
7. Bond Fund
8. Conservative Fund

Free Fund Switches

HDFC Life Click2Invest ULIP Plan allows for 4 free fund switches each year. In addition, the plan also allows for 4 free premium redirections to help policyholders redirect all future premiums into funds of their choice.

Free Partial Withdrawals

The plan allows for 4 free partial withdrawals in every policy year, after the completion of first 5 years of the policy.

Plan Benefits

In addition to the many features, HDFC Life Click2Invest ULIP plan also offers a host of benefits to help policyholders grow their money manifold. No wonder, this plan remains one of the best ULIP plans in India for investment in 2018. Let’s check out just some of the many benefits offered by HDFC Life Click2Invest ULIP plan.

Income Tax Benefit

HDFC Life Click2Invest ULIP plan offers income tax benefits on premium paid for up to Rs.1.5Lakhs under section 80C of the Indian Income Tax Act, 1961. In addition, the maturity proceeds and death benefits are also tax-exempt under Section 10(10D) of the Income Tax Act.

Maturity Benefit

On the maturity of the plan, life insured is paid the fund value as the maturity benefit.

Death Benefit

In the event of the unfortunate demise of the life insured, higher of the total Sum Assured, fund value or 105% of the total premiums paid, is paid to the nominee of the plan.

Bottom Line

HDFC Life Click2Invest ULIP offers investment fund options that promise a strong and consistent fund performance over long-term investment horizons. No wonder, HDFC Life Click2Invest ULIP plan is perhaps the best bet for those looking to invest their hard-earned money in the ULIP plan in India that ensure annual returns to match their future financial objectives and return expectations.

Bajaj Allianz Life Goal Assure

Like HDFC Life Click2Invest ULIP Plan, Bajaj Allianz Life Goal Assure ULIP plan offered by Bajaj Allianz Life too ranks amongst the best ULIP plans in India. This innovative ULIP plan aims has been carefully conceptualized and thoughtfully designed to help policyholders fulfill all their life goals, without having to run from pillar to post. Loaded with a host of benefits and features, Bajaj Allianz Life Goal Assure plan can help policyholders generate attractive returns over a very short investment horizon.

Let’s take a look at the eligibility criteria of Bajaj Allianz Life Goal Assure ULIP plan:

Eligibility Details

MinimumMaximum
Entry Age0 years60 years
Maturity Age75 years
Policy Term5 years20 years
Premium amountRs.36,000No limit
Sum AssuredGreater of 10x Annualised Premium OR 0.5 x policy term x Annualised Premium
Premium Paying FrequencyMonthly, Quarterly, Bi-annual, or Annual

Key Features

Bajaj Allianz Life Goal Assure ULIP Plan offers a wide range of useful features to help policyholders maximize their benefits. Here’s a list of just some of the key features of the plan:

Investment Fund Options

Bajaj Allianz Life Goal Assure ULIP Plan offers the options of 8 different investment fund options to help policyholders take a pick on the basis of their risk tolerance, their budget, and their future financial goals. Here’s a list of fund options offered under Bajaj Allianz Life Goal Assure ULIP are:

  1. Equity Growth Fund II
  2. Accelerator Mid-Cap Fund II
  3. Pure Stock Fund
  4. Pure Stock Fund II
  5. Asset Allocation Fund II
  6. Bluechip Equity Fund
  7. Bond fund
  8. Liquid Fund.

Return of Mortality Charges

This is a unique feature that makes Bajaj Allianz Life Goal Assure the best ULIP Plan in India for investment in 2018 and beyond. This feature helps policyholder get back the total mortality charges deducted during the term of the policy to maximize their returns.

Fund Booster

This is yet another unique feature that allows policyholders to boost the rate of returns they generate. Under this feature, policyholders who have chosen the policy term of 10 years and more are eligible to get Fund Boosters upon the maturity of the policy.

Loyalty Additions

Bajaj Allianz Life Goal Assure ULIP Plan leaves no stones unturned when it comes to maximizing the benefits and returns for the policyholders. Under this plan, policyholders are given loyalty additions, over their regular premium fund value, after the completion of the 5th policy year.

Unlimited Fund Switches

This is perhaps one feature that makes Bajaj Allianz Life Goal Assure ULIP Plan one of the best ULIP plans in India for investment in 2018 and beyond. Policyholders are allowed unlimited fund switches, without any restrictions or without having to worry about incurring any tax liability.

Plan Benefits

In addition to the slew of features, Bajaj Allianz Life Goal Assure ULIP Plan also provides its policyholders with an ocean of amazing benefits to help them maximize their returns and minimize their tax liabilities. Here’s a little smattering on just some of the many benefits offered by the plan to help you understand why it consistently remains the top choice amongst some of the best ULIP plans in India for investment in 2018.

Income Tax Benefit

Like other ULIP plans, Bajaj Allianz Goal Assure ULIP Plan too offers tax benefits to help policyholders minimize their tax liabilities. Policyholders can claim tax deductions on premiums paid towards the policy for up to Rs.1,50,000 under Section 80C of the Indian Income Tax Act, 1961. In addition, the maturity proceeds and death benefits too are tax-exempt under Section 10(10D) of the Indian Income Tax Act.

Maturity Benefit

Upon the maturity of the policy, policyholders are paid the maturity benefit which is equal to the Regular Premium Fund Value plus the Top-up Premium Fund Value as on the maturity date of the plan.

Death Benefit

In the event of the demise of the policyholder during the term of the policy, nominees of the policy are paid the death benefit, which is equal to the higher of the Regular Premium Fund Value or Regular Premium Sum Assured plus the higher of the Top-up Premium Fund Value or Top-up Sum Assured. The plan stipulates that the death benefit is not lesser than 105% of the total premiums paid till the date of the death of the policyholder.

Bottom Line

Investing in Bajaj Allianz Goal Assure ULIP Plan makes sense for those looking for maximum returns for their hard-earned money and to safeguard the financial future of their loved ones. The generous maturity and death benefits under the plan make it one of the most sought-after and best ULIP plans in India.

Kotak Platinum ULIP Plan

Kotak Mahindra Life Insurance Company is yet another name to reckon with in the Indian life insurance industry. ULIP plans from Kotak Mahindra Life Insurance Company have long been popular for helping policyholders generate attractive returns on investment. Amongst the large number of ULIP plans sold by the company, Kotak Platinum plan is one of the best ULIP plans for investors looking to maximize their investment capital and enjoy comprehensive life insurance coverage at the same time.

Let’s quickly skim through the eligibility criteria of Kotak Platinum ULIP Plan:

Eligibility Details

MinimumMaximum
Entry Age0 years65 years
Maturity Age18 years75 years
Policy Term10 years30 years
Premium amountRs.8250 (monthly)No limit
Sum AssuredHigher of (10 X AP) or (0.5 X PTX AP) for age<45

Higher of (7 X AP) or (0.25 X PTX AP) for age>45

Premium Paying FrequencyMonthly, Quarterly, Bi-annual, or Annual

Key Features

Kotak Platinum ULIP Plan has been carefully conceptualized and thoughtfully designed to offer a wide variety of features to the policyholders. Some of the standout features of Kotak Platinum ULIP Plan include:

Investment Fund Options

Kotak Platinum ULIP Plan comes packed with the options of 8 different investment fund options. Policyholders can choose to invest in one or more of these investment funds depending upon their risk appetite and budget tolerance. The investment funds offered under Kotak Platinum ULIP Plan are:

  1. Classic Opportunities Fund
  2. Frontline Equity Fund
  3. Balanced Fund
  4. Dynamic Floor Fund II
  5. Dynamic Bond Fund
  6. Dynamic Floating Rate Fund
  7. Dynamic Gilt Fund
  8. Money Market Fund

Additional Riders

Kotak Platinum ULIP Plan provides policyholders with the options of selecting one or more additional riders to help them maximize their benefits. There are 3 additional riders available with this plan. These riders are:

  1. Kotak Term Benefit (KTB)/ Kotak Preferred Term Benefit (KPTB) – Under this rider, nominees of the policy are paid a lump sum amount upon the death of the policyholder.
  2. Kotak Accidental Death Benefit (ADB) – Under this rider, nominees of the policy are paid out a lump sum amount as the accidental death benefit in the event of the accidental death of the policyholder.
  3. Kotak Permanent Disability Benefit (PDB) – Under this rider, policyholders are paid a certain amount as monthly installments in the event of being permanently disabled due to an accident.

Top–Up Premium

This is one of the most interesting features offered by Kotak Platinum ULIP plan. This feature allows policyholders to make top-up premium payment. The minimum top-up premium that policyholders can make on the plan is Rs.10000 and the maximum premium amount is 10 times the annual premium. Top-up premium payments result in the increase of the top-up sum assured; thus helping policyholders maximize their returns on investment. No wonder, investment experts consistently rank Kotak Platinum plan amongst the best ULIP plan in India for investment in 2018.

Loyalty Additions

Like Bajaj Allianz Life Goal Assure ULIP Plan, Kotak Platinum ULIP plan too offers loyalty additions to help policyholders reap the maximum returns on their investment. In this plan, Loyalty Additions are added every 5 years, after the completion of 10 policy years. The total value of Loyalty Additions in this plan is equal to 2% of the Average Fund Value.

Free Fund Switches

Kotak Platinum Plan too comes loaded with options of free fund switches to help policyholders switch between funds, without having to worry about incurring tax liability and without having to spend through their nose. 8 free fund switches are allowed in a year; thereafter, a nominal fee of Rs.500 is incurred for switching between investment funds.

Plan Benefits

Kotak Platinum ULIP Plan also comes loaded with many benefits to help policyholders get the maximum returns on their investment. Let’s look at some of the most common benefits offered by Kotak Platinum Plan:

Income Tax Benefit

Policyholders can claim tax deductions on the premium paid towards Kotak Platinum ULIP Plan for up to Rs.150000 under Section 80C of the Indian Income Tax Act 1961. Furthermore, the maturity and death benefit also qualify for tax exemption under Section 10(10D ) of the Indian Income Tax Act.

Maturity Benefit

Upon the maturity of the policy, policyholders are paid the maturity benefit which is equal to the total Fund Value plus the Loyalty Additions.

Death Benefit

In the event of the death of the policyholder during the tenure of the plan, nominees of the policy are paid the death benefit, which is higher of the Sum Assured or the total Fund Value.

Bottom Line

Though there are many ULIP plans available in India for investment in 2018, Kotak Platinum Plan inevitably remains one of the bestselling ULIP plans. The unlimited features and benefits offered by this plan make it the best ULIP plan option for investors looking to quickly generate high returns on their investment capital.

Canara HSBC Life Invest 4G ULIP Plan

Canara HSBC Life Invest 4G ULIP plan is a new ULIP plan, which has become immensely popular amongst both seasoned and newbie investors soon after its launch. With its fairly low-risk and high-return generating features, Canara HSBC Life Invest 4G ULIP plan has become the best solution for conservative investors who look for safer investment and attractive returns without having to worry about the volatility of the market.

Take a look at the eligibility criteria of Invest 4G ULIP plan from Canara HSBC OBC Life Insurance Company:

Eligibility Details

MinimumMaximum
Entry Age18 years65 years
Maturity Age23 years80 years
Policy Term5 years30 years
Premium amountRs.5000 (monthly)No limit
Sum AssuredHigher of (10 X AP) or (0.5 X PTX AP) for age<45

Higher of (7 X AP) or (0.25 X PTX AP) for age>45

Premium Paying FrequencyMonthly, Quarterly, Bi-annual, or Annual

Key Features

Canara HSBC Invest 4G is one of the best ULIP plans that offer multiple features to help policyholders create wealth quickly without having to worry about the volatility of the market. Some of the key features of the plan include:

Investment Fund Options

Canara HSBC Invest 4G ULIP Plan provides policyholders with the choice of 7 market leading investment fund options to choose from. These investment fund options are:

  1. Emerging Leaders Equity Fund
  2. India Multi-cap Equity Fund
  3. Equity II Fund
  4. Growth Plus Fund
  5. Balanced Plus Fund
  6. Debt Fund
  7. Liquid Fund

Choice of Plans

Canara HSBC OBC Invest 4G ULIP Plan comes in 3 different variants to suit the individual needs and requisites of the policyholders. These variants are:

1: Life Option – This plan offers regular death benefit as stipulated by the company.
2: Life Option with PFB – This option ensures future premium funding after the death of the policyholder during the term of the plan.
3: Whole of Life Option – This option covers the entire life of the policyholder and offers regular death benefits.

Return of Mortality Charges

This feature ensures that the policyholders get back the total mortality charges deducted during the term of the policy to maximize their returns. This unique feature makes Canara HSBC OBC Invest 4G Plus one of the best ULIP plans in India for investment in 2018.

Loyalty Additions

Canara HSBC OBC Invest 4G ULIP plan offers the option of loyalty additions to help policyholders maximize their returns. In this plan, Loyalty Additions are added every 5 years, after the completion of 5 policy years.

Wealth Booster

This ULIP plan offers the option of Wealth Boosters depending upon the Premium Payment Term. Typically, Wealth Boosters are a percentage of average Fund Value of the last 60 monthly policy anniversaries. These Wealth Boosters are added in the same proportion as the value of total units.

Plan Benefits

In addition to the multiple features, Canara HSBC OBC Invest 4G ULIP plan also offers many benefits to help policyholders maximize their returns on investment. Let’s look at some of the most common benefits offered by the plan:

Income Tax Benefit

Invest 4G ULIP plan allows policyholders to avail tax deductions on the premium paid towards the policy under Section 80C of the Indian Income Tax Act for up to Rs.150000. In addition, the maturity and death benefits too are eligible for tax exemption under Section 10(10D) of the Indian Income Tax Act.

Maturity Benefit

Upon the maturity of the policy, policyholders are paid the total Fund Value based on the on the prevailing NAVs at the time of the maturity of the policy.

Death Benefit

In the event of the death of the policyholder during the policy term, nominees of the policy are paid the death benefit. The death benefits for the 3 different variants of the plan are:

  1. Life Option – Before the age of 60 years, the death benefit is the total Sum Assured, Total Fund Value as on the date of death claim, or 105% of all Premiums, whichever is higher. For policyholders aged 60 or above, the death benefit is the total sum Assured, the total fund value as on the date of death claim or 105% of the premiums paid, whichever is higher.
  2. Life Option with Premium Funding Benefits –Under this variant of the plan, the death benefit is paid in a lump sum as the total Sum Assured or 105% of total Premiums paid till death, whichever is higher. In addition, all the future Premiums are paid by the insurer and total Fund Value is paid to the nominee upon maturity of the policy.
  3. Whole of Life Option – Before the age of 60 years, the death benefit is the total Sum Assured, Total Fund Value as on the date of death claim, or 105% of all Premiums, whichever is higher. For death of policyholders aged 60 or above, the death benefit is the total sum Assured, the total fund value as on the date of death claim or 105% of the premiums paid, whichever is higher.

Bottom Line

Invest 4G is a comprehensive ULIP investment plan that helps policyholders realize their future financial objectives, without having to worry about income tax and the volatility of the market. This is one of the best ULIP plans that offer the choice of customized protection for individual policyholders and provides them with the opportunity to save for their life goals. Moreover, it helps policyholders maximize their savings with Loyalty Additions & Wealth Boosters and with the return of the Mortality Charges on the maturity of the policy.

Future Generali Wealth Protect Plan

Future Generali Life Insurance Company has been the front-runner when it comes to offering new-age ULIP Plans as a worthy alternative for mutual funds after the reintroduction of LTCG tax. And Future Generali Wealth Protect Plan remains one of the most popular and best ULIP plans offered by the company. This amazing plan comes packed with a lot of features and benefits to help policyholders make the maximum returns on their investment while safeguarding their investment capital. With its comprehensive life insurance coverage, market-leading investment fund options and the virtual ocean of benefits, Future Generali Wealth Protect Plan makes for the best ULIP plan in India for investment in 2018.

Check out the eligibility criteria of Future Generali Wealth Protect Plan:

Eligibility Details

MinimumMaximum
Entry Age7 years60 years
Maturity Age18 years75 years
Policy Term15 years40 years
Premium amount25000 for Gold

25001 for Platinum

25000 for Gold

200000 for Platinum

Sum AssuredFor age< 45 years, SA=Higher of (1/2 X Policy Tenure or 10) X Annualized Premium
For age >=45 years, SA= Higher of (1/4 X Policy Tenure or 7) X Annualized Premium
7-44 years: 30 times

45-50 years: 20 times

51-55 years: 15 times

56-60 years: 10 times

Premium Paying FrequencyYearly and Half-Yearly for Gold

Yearly / Half Yearly/ Quarterly /Monthly (ECS) mode for Platinum

Key Features

Future Generali Wealth Protect ULIP Plan has been carefully designed and thoughtfully conceptualized to spoil policyholders with choices galore in terms of useful features. Some of the key features of the plan include:

Investment Fund Options

Future Generali Wealth Protect ULIP Plan offers the choice of 6 top-performing investment fund options. One can select the investment funds depending upon their risk tolerance, budget and wealth creation objectives. The investment funds offered under Future Generali Wealth Protect ULIP Plan are:

  1. Future Secure Fund
  2. Future Income Fund
  3. Future Balance Fund
  4. Future Maximize Fund
  5. Future Apex Fund
  6. Future Opportunity Fund

Additional Riders

Future Generali Wealth Protect ULIP Plan comes packed with the options of 4 different and useful riders. These additional rider options are:

  1. Accidental Death Benefit
  2. Accidental Total & Permanent Disability Benefit
  3. Unit Linked Life Guardian Rider
  4. Unit Linked Critical Illness (Core) Rider

Plan Options

Future Generali Wealth Protect Plan comes in 2 different variants – Gold and Platinum. The maximum premium payment for Gold Option is Rs. 25000. For premium payments more than Rs 25000, policyholders need to opt for Platinum Option.

Loyalty Additions

Like most other popular ULIP plans, Future Generali Wealth Protect Plan too offers the options of loyalty additions to ensure maximum benefits for the policyholders. In this plan, Loyalty Additions are paid as:

  • 5% of the First year’s Annualized Premium is paid for Gold Option
  • 7.5% of the First year’s Annualized Premium is paid for Platinum Option

Free Fund Switches

Future Generali Wealth Protect Plan offers the choice of unlimited free fund switches to the policyholders. In one policy year, policyholders are allowed to make 12 free switches. Thereafter, there is a charge of Rs.100 per switch.

Plan Benefits

In addition to the many features, Future Generali Wealth Protect Plan comes with a lot of benefits too. Here is a list of some of the key benefits of this ULIP plan:

Income Tax Benefit

Premium payments made towards the policy are tax-exempt under Section 80C of the Indian Income Tax Act. In addition, maturity and death benefits offered under the plan too are tax exempt.

Maturity Benefit

Upon the maturity of the policy, the total Fund Value along with the Guaranteed Loyalty Additions are paid to the policyholder.

Death Benefit

In the event of the death of the policyholder during the term of the policy, the nominee of the policy is paid the death benefit, which is higher of the Sum Assured or the total Fund Value subject to a minimum of 105% of total premiums paid till date of death claim.

Bottom Line

Given the staggering range of features and benefits, it wouldn’t be an exaggeration to say that Future Generali Wealth Protect Plan is one of the best ULIP plans in India for investment in 2018. Those looking to invest their money in ULIP plans with an objective to create wealth and hedge taxes, while enjoying comprehensive life coverage, must carefully consider buying this ULIP plan.

Over to You!

So there you have it –5 best ULIP plans in India for investment in 2018. But before you start investing your hard-earned money in one of these 5 best ULIP plans in India, remember to time the market well. Also, don’t forget to choose the investment funds only after analyzing their past performance and absolute returns for at least 5 years.

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