Term Insurance

Investment Plans

NRI Plans

All Plans

Customer Service

Calculators

Fund Performance

ULIP Returns in 25 years

A 25-year ULIP policy combines insurance protection with investment opportunities in market-linked⁵ funds. When you pay your premium, ... Read more a portion covers life insurance, while the remainder gets invested in equity or debt funds based on your selection. The extended duration of 25 years allows investments to grow through compounding while providing financial protection to your family. These policies offer features such as flexible fund switching, tax² benefits, and alignment with financial goals like retirement planning or education funding. In this article, we will see how ULIP returns in 25 years may impact investors and the various factors that influence their performance over time. Read less

A 25-year ULIP policy combines insurance protection with investment opportunities in .. Read more market-linked⁵ funds. When you pay your premium, a portion covers life insurance, while the remainder gets invested in equity or debt funds based on your selection. The extended duration of 25 years allows investments to grow through compounding while providing financial protection to your family. These policies offer features such as flexible fund switching, tax² benefits, and alignment with financial goals like retirement planning or education funding. In this article, we will see how ULIP returns in 25 years may impact investors and the various factors that influence their performance over time. Read less

Almost there!

Your premium calculation is in progress

In this policy, the investment risk in investment portfolio is borne by the policyholder.

Invest ₹15,000/month¹ and get ₹5.3 Crore tax-free² returns (@19.87%)

All Funds rated 4 or 5 stars³

Zero LTCG tax² + Life cover

Starts at ₹1,000/month

¹Illustrative returns @4%: ₹26.1 Lakh | @8%: ₹58.3 Lakh
Policy Term: 25 yrs. Past performance is not indicative of future performance. T&C apply. The linked insurance product do not offer any liquidity during the first five years of the contract. The policy holder will not be able to surrender/withdraw the monies invested in linked insurance products completely or partially till the end of the fifth year.

Calculate
Returns

Meet
an Advisor

ULIP Calculator

Full name

Date of birth

Are you an NRI?

Yes

Gender

Male

Female

Do you smoke?

Yes

Email ID

Calculate Returns

Premier SIP Calculator

Unable to load your customized plan

Please try again after some time

Our sales representative will connect with you soon to assist further

Try again

Premier SIP Calculator

Request timeout

We're facing a technical issue. Please try again after some time

Try again

Premier SIP Calculator

Here's your customised plan

Pay (Total)

₹11,99,016

Get Maturity Benefit

Based on assumed rate of return

₹34.57 Lakh

As per actual past performance

₹70.50 Lakh

@20.37%

Additional Benefits

Life Cover (including Terminal Illness Cover): ₹21.7 Lakh

Accidental Death Cover: ₹10.9 Lakh

Accidental Total & Permanent Disability: ₹10.9 Lakh

Discounts

Buy Now

Annual Income (₹)

Education

Post Graduate Graduate

Please select an option

Occupation

Salaried Self-employed

Please select an option

Industry

Please select an option

Nature of work

Please select an option

Tata AIA Premier SIP is a combination of the Tata AIA Smart SIP - Non-participating, Unit-linked, Individual Life Insurance Savings Plan (UIN: 110L174V01) and
Tata AIA Health Buddy - Non-participating, Non-Linked, Individual Health Product (UIN:110N183V01). Both Tata AIA Smart SIP and Tata AIA Health Buddy are also available for sale individually. Product option: Future Secure

Calculate
Returns

Meet
an Advisor

What is a 25-year ULIP policy?

A 25-year ULIP is an insurance plan with a tenure of twenty-five years, containing both life coverage and investment components. The structure works like this: when you pay the premium, one portion covers the insurance aspect; the remaining amount is invested in funds of your choice.

You can choose between equity funds, debt funds, or a mix of both, depending on your risk tolerance and financial goals. The policy structure allows for fund switching as circumstances change. After the initial five-year lock-in period, partial withdrawals become available if required. The basic structure of this scheme is to create a corpus during the policy term while keeping life cover throughout.

Tata AIA ULIP Plans

Tata AIA Premier SIP

Tata AIA Premier SIP is a combination of the Tata AIA Smart SIP, a non-participating, unit-linked, individual life insurance savings plan (UIN: 110L174V02), and Tata AIA Health Buddy, Non-participating, Non-Linked, Individual Health Product (UIN:110N183V01). Both Tata AIA Smart SIP and Tata AIA Health Buddy are also available for sale individually.

Tata AIA

Premier SIP

No Premium Allocation charges
Multi Cap Fund delivered 23.21% Returns (Benchmark: 16.65%)⁴
All funds rated 4 or 5 stars³

Calculate Returns

Tata AIA Param Raksha Life Pro +

Tata AIA

Param Raksha Life Pro +

Multi Cap Fund delivered 23.21% Returns (Benchmark: 16.65%)⁴
All funds rated 4 or 5 stars³
Unlimited free fund switches + High life cover

Calculate Returns

How does a 25-year ULIP work?

A 25-year ULIP policy combines protection with investment opportunities. A part of the premium goes toward funding life insurance for a safety net, while the remaining amount is invested in market-linked5 investments through equity, debt, or both. Over a long-term perspective, ULIP returns in the last 25 years may help achieve reasonable growth.

For instance, if yearly investment is ₹80,000 with 40% allocated to debt funds and 60% in equity funds, it may increase to approximately ₹58.48 Lakh after a period of 25 years at an average return of 8% against total investment of ₹20 Lakh. This shows the potential that ULIPs have in accumulating corpus for the fulfilment of long-term financial goals.

Note: These figures are illustrative and could be different depending on market performance and returns from the fund.

Our funds have consistently outperformed benchmarks

All
Equity
Debt
Hybrid

View Fund Fact Sheet

Returns as on

Plan now

Why choose a 10-Year ULIP policy?

Here is why you should choose a 10-year ULIP policy:

Life Coverage Protection

The policy provides life insurance coverage to protect your family's financial future against unexpected events. Your loved ones receive the sum assured amount if you die during the policy term.

Market-Linked Growth

ULIPs invest in equities and debt instruments, which have the potential to yield higher returns than conventional savings. A market-linked⁵ investment helps your funds grow fast with the long investment tenure of ten years.

Investment Flexibility

You can select an investment option and switch funds depending on your goal and market trends. This allows you to revise your strategy to enhance returns and manage risks throughout the tenure.

Tax Advantages

The premium you pay is eligible for tax² deduction under Section 80C of the Income Tax Act 1961. Additionally, the maturity proceeds are exempted under Section 10(10D) if all the conditions are met. For all the ULIP plans, irrespective of the premium amount or policy terms, the death benefit is exempt.

Long-Term Wealth Building

Long investment periods deliver potential returns due to the compounding effect and market cycle averaging throughout the tenure. A 10-year ULIP provides sufficient time to build a substantial corpus for important life goals.

Invest more, get more!

Invest ₹5,000/month

You get

₹56 Lakh

You invest ₹5,000/month

Invest ₹10,000/month

You get

₹1.13 Crore

You invest ₹10,000/month

Invest ₹15,000/month

You get

₹1.69 Crore

You invest ₹15,000/month

Invest ₹20,000/month

You get

₹2.27 Crore

You invest ₹20,000/month

Plan now

Amounts are based on a 20-year-old non-smoker male, with a 20-year premium payment term and a 30-year policy term, Tata AIA Premier SIP Future Secure plan option with 100% invested in Tata AIA Multi Cap Fund at 8% Rate of Return. Returns at 4% for investment of ₹5000/month, ₹10,000/month, ₹15,000/month and ₹20,000/month are 24 Lakh, 49 Lakh, 73 Lakh and 98 Lakh respectively.

Factors that affect ULIP performance over 10 years

The following are important factors that affect ULIP’s performance over ten years:

01

Market cycles and performance

Market movements in the equity and debt segments directly impact your ULIP returns throughout the entire investment tenure. Strong market performance leads to high returns, while downturns can temporarily reduce your investment value negatively. However, ten years often provide enough time to average out short-term market volatility and deliver growth.
02

Your fund choices

Equity funds offer higher growth potential but come with increased risk and market volatility exposure. Debt funds provide stability and moderate returns with lower risk, which may be suitable for conservative investors. Balanced funds combine both asset types to offer growth along with reasonable stability for returns.
03

Policy charges

Premium allocation charges, fund management fees, and mortality charges reduce your overall investment returns over time. These costs are high in early policy years but become less as your corpus grows. Understanding the charge structure may help you select plans with reasonable fees.
04

Fund switching strategy

Switching funds helps in optimizing your return from ULIP in various market conditions and life stages. You may rebalance between equity and debt if your goals, risk appetite, or market changes substantially. Regular portfolio review and timely switches may help you protect your gains and manage risk throughout the investment journey.
05

Compounding and discipline

Staying invested for the complete term allows compounding to multiply your wealth over the decade significantly. Consistent premium payments and patience through market ups and downs can enhance your final corpus value effectively. Even moderate returns grow substantially when reinvested year after year for ten complete investment years.

Projecting ULIP returns after 10 years

Let us examine three scenarios based on an ₹80,000 annual investment in different fund types systematically.

Equity fund returns

Annual Investment: ₹80,000
Expected Annual Return Rate: 12%
Investment Period: 10 years

Using the future value formula

FV = P × [(1+r)ⁿ - 1] / r

Future Value = 80,000 × [(1+0.12)¹⁰ - 1] / 0.12

Projected Corpus: ₹14,03,899

Debt fund returns

Annual Investment: ₹80,000
Expected Annual Return Rate: 7%
Investment Period: 10 years

Using the future value formula

FV = P × [(1+r)ⁿ - 1] / r

Future Value = 80,000 × [(1+0.07)¹⁰ - 1] / 0.07

Projected Corpus: ₹11,05,316

Balanced Fund Returns

Annual Investment: ₹80,000
Expected Annual Return Rate: 9%
Investment Period: 10 years

Using the future value formula

FV = P × [(1+r)ⁿ - 1] / r

Future Value = 80,000 × [(1+0.09)¹⁰ - 1] / 0.09

Projected Corpus: ₹12,15,434

These projections may help you understand how different fund choices significantly impact your returns after ten investment years.

Unlock the power of compounding!
Watch your investment grow

Compound Interest Calculator

Investment amount (₹)

Growth rate (%)

Invest for (Years)

Stay invested for (Years)

You Get

₹76.6 Lakh

You Pay

₹12 Lakh

Plan now

You Pay

You Get

Plan now

How are 10-year ULIP policy return rates calculated?

Here is how 10-year ULIP policy return rates are calculated:

Step 1: Premium allocation to funds

Your premium amount gets allocated to chosen fund units after deducting applicable policy charges and fees. You can select equity funds, debt funds, or a mix of both based on risk appetite. Fund switching is allowed during the policy term to adjust allocation according to market performance changes.

Step 2: Daily NAV calculation

Net Asset Value is the price of one unit of a particular fund at any given time. The NAV varies each day with market performance and is determined by applying the following standard formula:

NAV = (Market Value of Assets - Liabilities) / Total Outstanding Units

Liabilities include various policy expenses, charges, and fund management fees deducted from total assets.

Step 3: Return calculation using CAGR

WThe compound annual growth rate method computes your average annual return over the ten-year investment period.

CAGR Formula = [(Current NAV / Initial NAV) ^ (1 / Number of Years) - 1] × 100

Current NAV is the fund value at the end of ten years of your investment journey. Initial NAV is the fund value on your policy purchase date when the investment started initially.

Step 4: ULIP policy flexibility

You can choose between a single premium or a regular premium according to your financial situation. You have the option to make top-up payments anytime during the tenure to increase the investment amount. Also, partial withdrawals are allowed after completion of the mandatory five-year lock-in period.

How to maximise your ULIP returns in 10 years

The following are some ways to maximise your ULIP returns in 10 years.

Begin your investment early: Starting early provides more time to grow and capitalise on the compounding effect significantly. Early investment helps you accumulate a significant corpus even with small premium amounts over the decade.
Select appropriate funds: Choose funds based on your risk tolerance and long-term financial goal. Investors with high-risk tolerance may opt for equity funds, while conservative investors may choose debt or balanced fund options.
Review and rebalance regularly: Monitor your fund performance regularly and switch between options when market conditions change or goals evolve. Timely fund switching helps you protect capital during market downturns.
Understand policy charges: Compare different ULIP plans and select one with reasonable and transparent fees. Lower charges mean more of your premium gets invested, resulting in potentially higher final returns overall.
Maintain long-term discipline: Stay invested for the complete ten-year period to benefit from compounding. Withdrawing early reduces your returns and disrupts the wealth creation process significantly over the investment period.

Want to buy a new plan?

Our experts are happy to help you!

Are you an NRI?

Yes

Are you an NRI?

Yes

Name

Conclusion

A 10-year ULIP is an effective way to build wealth while protecting your family's financial future. Combining the dual benefit of market-linked⁵ growth potential with life insurance coverage, it helps in meeting your long-term financial goals. The right fund selection, discipline, and periodic monitoring are all important parameters for maximising returns over the decade. Understanding how charges, market cycles, and compounding work together enables sound investment decisions for optimal outcomes. Consider your risk tolerance and financial goals before investing in a 10-year ULIP plan.

Can I withdraw my ULIP investment before 10 years?

Yes, you can withdraw after the 5-year lock-in period, but early withdrawals may result in reduced long-term growth.

How do market conditions impact ULIP returns in 10 years?

ULIP returns fluctuate with market movement. Strong markets generally boost growth, while weak phases reduce performance. Long-term holding usually smooths short-term volatility.

Are ULIP returns in 10 years sufficient for long-term goals?

ULIPs can support long-term needs like education or retirement, but estimating the required contribution through a ULIP calculator helps align your goals and expectations.

Is it safe to rely on ULIP returns from the last 10 years for planning?

Past ULIP results offer useful guidance; however, they cannot assure future outcomes. Regular reviews and timely fund switches may help you align the plan with your goals and risk tolerance.

What is the maximum return of ULIP in the last 10 years?

Some equity-oriented ULIPs have provided substantial long-term gains, but the results depend upon the fund chosen, market cycles, and regular investing.

How to track the performance of your ULIP over time?

You can follow your ULIP through NAV updates, fund reports, and online dashboards. Periodic monitoring of fund allocation and charges can support better decision-making.

Is ULIP tax-free after 10 years in India?

ULIP maturity proceeds may be exempt under Section 10(10D) if policy conditions are met, as per prevailing tax² laws and eligibility.

The linked insurance product do not offer any liquidity during the first five years of the contract. The policy holder will not be able to surrender/withdraw the monies invested in linked insurance products completely or partially till the end of the fifth year.
Tata AIA Premier SIP is a combination of the Tata AIA Smart SIP, a non-participating, unit-linked, individual life insurance savings plan (UIN: 110L174V02), and Tata AIA Health Buddy, Non-participating, Non-Linked, Individual Health Product (UIN:110N183V01). Both Tata AIA Smart SIP and Tata AIA Health Buddy are also available for sale individually.
This advertisement is designed for combination of benefits of following individual and separate products named (1) Tata AIA Smart Sampoorna Raksha Supreme Unit Linked, Non-Participating Individual Life Insurance Plan (UIN: 110L179V02) and (2) Tata AIA Health Buddy, Non-Participating, Non-Linked, Individual Health Product (UIN: 110N183V01). These products are also available for sale individually without the combination offered/ suggested.
¹Illustration shows a monthly premium of ₹20,000 for Tata AIA Premier SIP for a 30-year-old male, standard life, premium payment term: 10 years, policy term: 10 years with 100% investment in Tata AIA Multi Cap Fund in Future Secure plan option. 4% and 8% are assumed rates of return. 19.87% is the 5-year return of Nifty 500 Index as of October'25. Maturity amount: ₹25,86,726 at 4% returns, ₹31,74,241 at 8% returns and ₹ 59,28,633 at 19.87% returns. The fund value calculation is done by projecting the past returns of Nifty 500 Index after adjusting for all expenses in Tata AIA Premier SIP. The above values have been calculated assuming 19.87% p.a. gross investment returns, which is the past 5-year return of Nifty 500 Index as of October'25.
²No Goods and Service Tax shall be applicable on Individual life insurance products as per prevailing laws. Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfillment of conditions stipulated therein. The Tax-Free income is subject to conditions specified under section 10(10D) and other applicable provisions of the Income Tax Act,1961. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere on this site. Please consult your own tax consultant to know the tax benefits available to you.
³All funds open for new business which have completed 5 years since inception are rated 4 star or 5 star by Morningstar as of August 2025.
©2025 Morningstar. All rights reserved. The Morningstar name is a registered trademark of Morningstar, Inc. in India and other jurisdictions. The information contained here: (1) includes the proprietary information of Morningstar, Inc. and its affiliates, including, without limitation, Morningstar India Private Limited (“Morningstar”); (2) may not be copied, redistributed or used, by any means, in whole or in part, without the prior, written consent of Morningstar; (3) is not warranted to be complete, accurate or timely; and (4) may be drawn from data published on various dates and procured from various sources and (5) shall not be construed as an offer to buy or sell any security or other investment vehicle. Neither Morningstar, Inc. nor any of its affiliates (including, without limitation, Morningstar) nor any of their officers, directors, employees, associates or agents shall be responsible or liable for any trading decisions, damages or other losses resulting directly or indirectly from the information.
⁴5-year computed NAV for Multi Cap Fund as of November 2025. Other funds are also available. Benchmark of this fund is S&P BSE 200.
⁵Market-linked returns are subject to market risks and terms & conditions of the product. The assumed rate of returns or illustrated amount may not be guaranteed and depends on market fluctuations
Linked Life Insurance products are different from traditional insurance products and are subject to risk factors.
The premium paid in Linked Life Insurance policies is subject to investment risks associated with capital markets and publicly available index. The NAV of the units may go up or down based on the performance of Fund and factors influencing the capital market/publicly available index and the insured is responsible for his/her decisions.
Tata AIA Life Insurance Company Limited is only the name of the Insurance Company & Tata AIA Smart Sampoorna Raksha Supreme, Tata AIA Smart SIP are only the names of the Unit Linked Life Insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
Please know the associated risks and the applicable charges, from your insurance agent or the Intermediary or policy document issued by the insurance company.
The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns.
Past performance is not indicative of future performance.
If your policy offers variable benefits, then the illustrations on this page will show two different rates of assumed future investment returns. Currently the gross investment returns are stipulated as 4% p.a. and 8% p.a. These assumed rates of return are not guaranteed, and these are not the upper or lower limits of what you might get back, as the value of your policy is dependent on a number of factors including actual future investment performance.
For more details on risk factors, terms and conditions please read Sales Brochure carefully before concluding a sale. Insurance cover is available under this product.
L&C/Advt/2026/Jan/0140