Best ULIP Plans to Invest in India

The way Indians think about wealth creation and financial security has evolved significantly over the years, and Unit Linked Insurance Plans (ULIPs) have played a major role in this shift. Unlike traditional insurance products that offer fixed and often limited returns, ULIPs combine market-linked investments with life insurance protection.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

This means your money gets the opportunity to grow through equity and debt markets, while your family remains financially protected. With the Indian ULIP market estimated at around $1.1 trillion in 2024, these products continue to gain popularity as more investors recognise the benefit of combining long-term wealth creation with insurance in a single plan.

For disciplined investors who are comfortable staying invested for at least five years, ULIPs offer an attractive mix of growth potential, tax efficiency, and life cover. Over long periods, well-managed ULIPs have delivered promising annualised returns.

Additionally, maturity proceeds remain completely tax-free under current rules if the annual premium does not exceed ₹2.5 lakh. In this article, we look at some of the best ULIP plans offered by leading insurance companies in India and help you understand which plans may suit your financial goals.

HDFC Life Click 2 Invest

HDFC Life Click 2 Invest is a low-cost ULIP that helps accumulate wealth over time by combining flexible investment options with life insurance. It is suitable for investors seeking equity-based growth, tax benefits, and life cover in a single plan, thanks to its low charges and multiple fund options.

Key Features:

• Zero allocation charges (100% of premium goes to the fund, after taxes)
• 12 different fund options (equity, debt, balanced) to match your risk appetite
• Free fund switching up to 4 times per policy year; additional switches are chargeable
• Partial withdrawal allowed after 5 complete policy years, subject to age and minimum fund value conditions
• Premium waiver available as an optional rider (Waiver of Premium Rider) in case of death, disability, or critical illness

HDFC Life Sampoorn Nivesh Plus

HDFC Life Sampoorn Nivesh Plus is a Unit Linked Insurance Plan (ULIP) that combines life insurance protection with market-linked investment opportunities. Designed for wealth creation, this plan offers investors the flexibility to choose from 13 different fund options across equity, debt, and balanced categories, enabling portfolio customization based on individual risk appetite.

Key Features:

• 13 fund options (equity, debt, balanced) to match your risk appetite
• Lower premium allocation charges for higher premium amounts, making it cost-effective for larger investments
• Loyalty Additions (bonus units) from year 10 onwards, credited periodically as a percentage of average fund value, subject to plan terms
• Choose from 5 different benefit options to customize your death and maturity payouts
• Flexible premium payment options: single, limited, or regular pay

Bajaj Allianz Life Goal Assure II

Bajaj Allianz Life Goal Assure II is a well-rounded ULIP plan designed for middle-income professionals seeking a disciplined, goal-based approach to wealth creation. It offers a mix of life cover, loyalty additions, and return of mortality charges, making it a reasonable choice for those who want a structured ULIP without very high premiums.

The goal-based investment approach helps investors align their monthly contributions with specific life objectives like child education, retirement planning, or wealth creation.

Key Features:

• Multiple equity, debt, and balanced funds (16 funds) to match your risk appetite
• Goal-based investment approach with 4 portfolio strategies to align with life goals like child education, retirement, or wealth creation
• Moderate policy administration charge (₹400 p.a., increasing at 5% p.a. up to ₹6,000 p.a.), deducted monthly through unit cancellation
• Partial withdrawal allowed after 5 policy years, subject to minimum amount and fund value conditions
• Can increase premium anytime with top-ups (subject to lock-in and limits)

Bajaj Allianz Smart Wealth Goal III

Bajaj Allianz Smart Wealth Goal III represents an enhanced evolution of the Goal Assure series, offering investors additional flexibility and sophisticated features while maintaining competitive cost structures. This plan bridges the gap between basic ULIP offerings and premium feature-rich products.

Key Features:

• Pre-built portfolio options (Conservative, Moderate, Aggressive)
• 15+ fund options available
• Flexible payment frequency (monthly, quarterly, annual)
• Easy fund switching
• Can modify coverage anytime

ICICI Prudential LifeTime Classic

ICICI Prudential LifeTime Classic is a flexible ULIP that combines life cover with market-linked investments, making it suitable for middle-income investors who want a simple, structured ULIP with multiple fund options and loyalty benefits.

Despite lower absolute returns compared to top-performing equity funds, its value proposition remains compelling for disciplined, long-term investors.

Key Features:

• Relatively low minimum premium: ₹2,500/month (₹30,000/year) for regular/limited pay, ₹50,000 for single pay
• Choose from 22 different market-linked funds (equity, balanced, debt) to match your risk appetite
• Mobile app to track your investments, switch funds, and manage your policy online
• Can adjust life insurance coverage (increase/decrease) on policy anniversaries, subject to underwriting and age limits
• Transparent charge disclosure with clear breakdown of all charges in the benefit illustration

TATA AIA Fortune Pro

TATA AIA Fortune Pro is a ULIP that combines life cover with market-linked investments and regular loyalty additions. It is designed for investors who want a structured, long-term ULIP with a curated set of funds and the flexibility to increase premiums over time.

Key Features:

• Regular Loyalty Additions (bonus units) from year 11 onwards, credited periodically to boost your investment, subject to policy terms and conditions
• Choose from 11 carefully selected funds (equity, debt, balanced) to match your risk appetite, with a portfolio strategy (Enhanced SMART) for structured investing
• Can increase premium anytime with top-ups (minimum ₹5,000), subject to policy limits, allowing you to invest more as your income grows
• Partial withdrawal allowed after 5 policy years, subject to minimum amount and fund value conditions
• Premium waiver rider available (Waiver of Premium / Waiver of Premium Plus) in case of death, disability, or critical illness, subject to terms and underwriting

Axis Max Life High Growth Fund

Axis Max Life’s High Growth Fund, available within multiple ULIP wrappers, is a mid-cap oriented equity fund that has delivered strong long-term returns. For aggressive investors comfortable with volatility, this fund offers a good wealth-creation opportunity over a long horizon.

Key Features:

• Focuses primarily on mid-cap companies with strong long-term growth potential, while maintaining a multi-cap portfolio
• Has consistently outperformed its benchmark (Nifty Midcap 100) over 3–5 years, but performance varies with market cycles and mid-cap volatility
• Actively managed by an experienced equity team with long-standing expertise in mid-cap and multi-cap investing
• Best suited for a 12+ year investment horizon to benefit from compounding and manage mid-cap volatility
• Accepts higher volatility in the short term in pursuit of higher long-term returns, making it suitable only for aggressive investors

HDFC Life Smart Protect

HDFC Life Smart Protect is a ULIP that combines life protection with wealth creation and offers a capital guarantee option along with charge return benefits. It is suitable for investors who want some downside protection while participating in market-linked growth.

Key Features:

• Capital guarantee option: at maturity, you get the higher of (Fund Value + Loyalty Additions) or (Total Premiums Paid – Partial Withdrawals)
• Charge return benefits: loyalty additions that return multiples of mortality, allocation, and fund management charges, plus a maturity loyalty addition, subject to policy terms
• Choice of 11 fund options under Level Cover and Decreasing Cover options
• Flexible maturity terms from 10 to 40 years, depending on the plan option and age at entry
• Partial withdrawal allowed after 5 policy years, subject to minimum amount and fund value conditions

Conclusion

ULIPs work best for investors who need a long-term investment product which generates wealth while providing life insurance protection. These investment products work best for investors who need their portfolio to stay stable through investment periods that last more than ten years.

The current ULIPs provide investors with improved investment options through their lower fees and transparent disclosure and flexible investment choices.

That said, a ULIP should be selected only after comparing it with mutual funds and term insurance as separate options. Young Indian workers who have multiple years to invest their money and maintain a stable income stream should view ULIPs as an important financial tool to enhance their complete financial strategy.

The selection between these options depends on your individual financial goals and your ability to manage market volatility and sustain your investment dedication throughout different time periods.