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ULIP - Unit Linked Insurance Plan

With a Unit Linked Insurance Plan (ULIP), you get both insurance protection and investment growth. In addition to providing life cover, ULIP plans... Read more allow you to invest in equity, debt, or hybrid funds, increasing your wealth over time. The flexibility of ULIPs makes them ideal for achieving long-term goals like children's education, homeownership, or retirement planning. Read Less

With a Unit Linked Insurance Plan (ULIP), you get both insurance protection and investment growth. Read more In addition to providing life cover, ULIP plans allow you to invest in equity, debt, or hybrid funds, increasing your wealth over time. The flexibility of ULIPs makes them ideal for achieving long-term goals like children's education, homeownership, or retirement planning. Read Less

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

Invest ₹15,000/month¹ and get ₹1.32 Crore tax-free⁷ returns

Zero premium allocation charge

All funds rated 4 or 5 stars² by Morningstar³

Life cover + Wealth creation

Generate income with smart
withdrawal strategy

¹Illustration shows a monthly premium of ₹15,000 for Tata AIA Premier SIP (20-year-old male, standard life, premium payment term: 20 years, policy term: 30 years, limited pay) with 100% investment in Tata AIA Multi Cap Fund in Future Secure plan option. Maturity amount: ₹57,65,340 at 4% returns and ₹1,32,05,571 at 8% returns. 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.

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Written by

Vishal Kapoor

Insurance Expert

Vishal Kapoor

Vishal Kapoor, AVP - Brand & Product Marketing at Tata AIA, has over 17 years of experience in the BFSI sector. He is responsible for driving brand strategy, product & channel marketing campaigns.

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Girish J Kalra

Chief Marketing Officer

Girish J Kalra

Girish J Kalra, Chief Marketing Officer at Tata AIA, leading the organizations marketing & corporate communication initiatives..

What Is ULIP?

A ULIP (Unit Linked Insurance Plan) is a financial product that provides life insurance protection along with investment opportunities. A ULIP plan provides your family with life insurance, while the balance is invested in market-linked⁸ funds like equity, debt, or a mix of both. The dual benefit of this policy allows you to protect your loved ones and grow your wealth over time to meet long-term goals, such as financing your child's education or retirement planning. In addition, ULIPs give you more control over your financial future by allowing you to choose or switch funds according to your risk appetite.

How Does a ULIP Work?

The following points explain how a unit linked insurance plan works:

Premium allocation

Life Insurance Component

A portion of the premium is used to provide life insurance coverage. Upon your death, your nominee receives your death benefit.

Investment Component

The rest of the premium is invested in market-linked⁸ funds. Depending on your risk appetite, you can choose from fund options

Equity Funds: This fund primarily invests in company stocks with the goal of higher potential returns, but generally at a higher risk.
Income, Fixed Interest and Bond Funds: Investments are made in corporate bonds, government securities, and other fixed income instruments to maintain stable returns at a medium risk level.
Cash funds: It is often referred to as a money market fund. Your premium is invested in bank deposits, money market instruments, or cash with a lower risk and a stable return.
Hybrid/balanced funds: To create a balance between equity and debt, these funds are a mix of equity and debt.

You may switch funds during the term of your policy, but there may be ULIP charges associated with it.

Dual Benefits

As a result of the two components of ULIP investment plans, there are two benefits:

Life cover

ULIPs provide death benefits to the beneficiary upon the death of the policyholder. Usually, as the death benefit, your family will receive whichever is higher the sum assured or the fund value.

Market Linked returns:

Your premium is invested in units of the chosen fund(s). Per-unit price, called the fund’s Net Asset Value (NAV), is multiplied by the number of units to determine the fund value. Since NAV fluctuates as per the market performance⁸ of the assets in the fund, returns cannot be assured. You can benefit from compound growth by staying invested over time.

Fund management

Professional fund managers manage the investment portion of your ULIP. The fund managers make investment decisions based on various factors, such as market conditions and the fund's objective. To manage your chosen fund, the life insurance company charges you a fee known as fund management fees.

Lock-in period

There is a 5-year lock-in period for ULIPs. You cannot surrender or partially withdraw from your policy during the first five years. This aims to promote long-term investment.

Tax benefits

Under Section 80C of the Income Tax Act, 1961, ULIP premiums qualify for tax deductions⁷ (up to Rs. 1.5 lakh). Section 10(10D) allows the maturity amount to be tax-free under certain conditions.

Role of Insurer and policyholder

As the policyholder, you can allocate your premiums to selected funds and then monitor their performance. As per the fund's objective, insurers adjust their investment strategies.

Real life example

Let’s consider an example of ULIP policy to understand its working:

Consider Amit, who purchases a 30-year ULIP at the age of 30. He pays premiums towards a life cover of ₹1 crore. He also invests in equity funds through his ULIP.

Case 1: If Amit passes away at the age of 45, his family will get the higher of the two amounts: either the death benefit of ₹1 crore or the fund value at the time of his death. This will ensure that his family receives the maximum amount of financial support.

Case 2: Amit will get the fund value accumulated by his chosen equity funds if he survives the 30-year term. This payout can help Amit reach his financial goals, like buying a house or retirement.

ULIP – Life Insurance + Investment

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

Solution Composition

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.

Tata AIA

Param Raksha Life Pro +

Multicap fund delivered 25.53% returns (Benchmark:18.51%)¹³
All funds rated 4 or 5 stars² by Morningstar³
Get terminal illness cover with Term booster⁴

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Solution Composition

Tata AIA Premier SIP is a combination of the Tata AIA Smart SIP, a 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.

Tata AIA

Premier SIP

Multicap fund delivered 25.53% returns (Benchmark:18.51%)¹³
Generate 2^nd income with smart withdrawn strategies
Payouts are tax⁷ exempted

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TATA AIA Fund Performance and Benchmark

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Equity
Debt
Hybrid

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Tata AIA ULIP plans offer a flexible way to build long-term wealth through unit-linked savings and life protection. These market-linked⁸ solutions... Read more allow you to invest in equity funds, debt funds, or hybrid funds based on your goals and risk appetite. Tata AIA’s equity-oriented ULIP funds have delivered competitive performance, with the India Consumption Fund showing a 5-year annualised return of 26.57% and the Top 200 Fund recording 26.73% as of Sep’25.

With ULIP features such as fund switching, partial withdrawals, premium allocation, and transparent ULIP charges, you can customise your financial strategy with complete flexibility. ULIP fund options allow you to align your investment with your preferred mix of growth and stability. Plans like Tata AIA Premier SIP and Tata AIA Param Raksha Life Pro+ help you grow wealth systematically while ensuring long-term financial security. Read Less

Tata AIA ULIP plans offer a flexible way to build long-term wealth through... Read more unit-linked savings and life protection. These market-linked⁸ solutions allow you to invest in equity funds, debt funds, or hybrid funds based on your goals and risk appetite. Tata AIA’s equity-oriented ULIP funds have delivered competitive performance, with the India Consumption Fund showing a 5-year annualised return of 26.57% and the Top 200 Fund recording 26.73% as of Sep’25.

With ULIP features such as fund switching, partial withdrawals, premium allocation, and transparent ULIP charges, you can customise your financial strategy with complete flexibility. ULIP fund options allow you to align your investment with your preferred mix of growth and stability. Plans like Tata AIA Premier SIP and Tata AIA Param Raksha Life Pro+ help you grow wealth systematically while ensuring long-term financial security. Read Less

Key features of ULIP plans

1. Investment and life insurance under one plan

ULIPs Plans are known for the dual advantage of investment and insurance they offer under a single policy. The life insurance cover will secure your family in your absence, and the investment option will help you create wealth for your future financial goals.
2. Fund options based on risk profile

With a ULIP policy, you can choose between equity, hybrid, and debt fund options based on your high, medium, or low risk profile. For example, young earners can choose a high-risk equity fund, whereas individuals close to retirement can choose a low-risk conservative debt fund.
3. Switch between fund options

You can keep track of the performance of the ULIP funds based on the market movement and switch between them to enhance the potential gains.
4. ULIP lock-in period

ULIP investment plans have a mandatory lock-in period of 5 years. After the lock-in period, you can make partial withdrawals from your ULIP policy to meet any immediate financial needs.

Why invest in ULIP policy?

ULIPs include a few charges associated with managing the policy that you should know.

Get dual benefits

ULIP plans offer market-linked returns⁸ along with the benefit of life cover.

Avoid the hassle of managing funds

Once you pay your premiums, you can stop worrying about your investment, as our expert fund managers will manage the funds on your behalf.

Multiple fund options

With ULIP Plans, you can choose from multiple fund options and switch between the funds to ensure that your investment continues growing in the market.

Benefit from withdrawal options

After the lock-in period, you can make partial withdrawals on your ULIP policy and fulfil any financial commitments as needed.

Save tax up to Rs 46,800⁶

The premiums paid for ULIP plans are eligible for Section 80C tax deduction, and the payouts qualify for Section 10(10D) tax⁷ exemption, subject to the applicable tax⁷ laws.

Flexibility

ULIPs Plans offer adequate flexibility to the policyholder, be it the fund options, fund allocation or policy tenure.

Transparency

You can find the NAV, charges, and fund performance regularly. You'll know where your funds are invested and how they're performing, so you can make better decisions.

Long-term investment

ULIPs are designed to encourage long-term investment, help grow your wealth over time and benefit from the power of compounding. ULIPs also promote disciplined savings through a mandatory lock-in period.

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Investment amount (₹)

Growth rate (%)

Invest for (Years)

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You Get

₹76.6 Lakh

You Pay

₹12 Lakh

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You Pay

You Get

Plan now

How to choose between the best ULIP plans?

Follow the steps to find the best unit linked plan for you.

1. Analysis of personal investment goals

Since each investor has different goals, it’s essential to analyse your personal goals and the time needed to achieve them. Then look for a ULIP investment plan that will align with these goals and fit your investment horizon..
2. Decide insurance objectives

ULIPs also offer the benefit of a life insurance cover that can be adjusted to meet your needs. If you have more financial liabilities and commitments, the life cover should also be adequate enough to protect your family.
3. Evaluate risk profile

Not every investor’s risk profile and risk appetite are the same. Therefore, when choosing a fund, risk-averse investors choose plans with low-risk funds, while aggressive investors opt for plans with high-risk funds.
4. Compare ULIP plans

Since all ULIPs are usually different, you will need to compare the plans to understand which ULIP features, benefits, and funds are better suited for your investment goals.
5. Performance of ULIP funds

ULIPs have funds whose performances are linked to the market. To ensure that you have suitable funds in your plan, check out the fund performance of our Unit Linked Insurance Plans so that you can obtain the desired benefits from your investment.
6. Flexibility

ULIP plans should offer a flexible tenure as per your investment horizon as well as a good choice of funds so that you are not restricted to limited options that may not be aligned with your investment goals.
7. Understand different charges levied

ULIPs carry certain charges, such as fund management expenses, premium allocation charges, etc., that can affect your investment value. Therefore, keep these ULIP charges in mind before you start investing in a ULIP.
8. Solvency ratio

The insurance company that offers the ULIP policy should have a good solvency ratio. This term means that the company’s financial health is good, and you will be able to receive your ULIP returns and benefits as and when they are due.
9. Claim settlement ratio

Your insurer’s claim settlement ratio will also matter while choosing a Unit-Linked Insurance Plan. It indicates the number of claims they have settled against the number of claims they receive in a financial year.

Tata AIA ULIP Plans

Payout Option	Description	Example
Tata AIA Premier SIP	18-50 years	₹12,000/year or ₹1,000/month
Tata AIA Smart SIP	18-65 years	₹18,000/year or ₹1,500/month
Tata AIA Smart Fortune Plus	0-65 years	₹24,000/year or ₹2,000/month
Tata AIA Smart  Sampoorna Raksha Supreme	18-65 years	₹24,000/year or ₹2,000/month
Tata AIA i Systematic Insurance Plan	0-60 years	₹24,000/year or ₹2,000/month
Tata AIA Smart Sampoorna Raksha Pro	18-60 years	₹24,000/year or ₹2,000/month

Types Of ULIP Plans

Based on Fund Options:

Types of Funds Options	Details
Equity-Based ULIP Funds	In Equity ULIP funds, the premium is utilised to purchase equities of multiple companies. These funds are quite closely linked to market movements and, therefore, carry higher risks. However, high-risk equity funds may yield higher returns over the long term.
Hybrid or Balanced Funds	Hybrid funds or balanced funds are a combination of equity funds and fixed-interest instruments that are suitable for medium-risk investors. Such funds provide adequate exposure to the market, and the debt investments balance the risk in equity.
Debt-Based ULIP Funds	Debt funds offer investments in debt instruments such as corporate bonds and government securities. They are low to moderate-risk investments and are considered safe for conservative investors. However, the returns are lower compared to Equity or Balanced fund options.
Cash Funds	Also known as money market funds, these funds are considered to be low-risk investments since they invest in bank deposits, cash, and money market instruments

Based on Purpose:

Purpose Driven ULIP Solutions	Details
ULIP Plans for Wealth Creation	A ULIP can be used to create and grow wealth through market-linked investments over the long term to meet financial goals and significant expenses that regular savings cannot fulfil.
ULIP Plans for Children’s Education	The returns from a ULIP can be used to fund your child’s education if you align the investment horizon and the goals. You can also make partial withdrawals from the ULIP after the 5-year lock-in period to pay tuition fees, plan higher education, etc.
ULIP Plans for Health Benefits	ULIP returns can be used as a future emergency fund in case of medical emergencies. Moreover, you can also add an optional health rider⁹ to your ULIP to protect yourself against the costs arising from a health emergency.
ULIP Plans for Retirement	You can make long-term investments in ULIPs, and the returns received can be used to help you lead a comfortable life during your retirement years and handle financial emergencies when you have no steady source of income.

How to enhance ULIP returns?

Here’s what you should do to optimise the returns once you choose the top rated ULIP plans.

Invest early

Consider investing in a ULIP scheme from an early age. By choosing a longer policy period, you will reduce the risk of short-term volatility. Additionally, you can pay a reasonable premium for the required coverage.

Invest wisely

Invest in long-term funds based on your risk profile. Utilise the switching option to maximise your returns based on the current market conditions.

Keep monitoring your portfolio

Make sure you review your ULIP policy on a regular basis to ensure it continues to meet your requirements and aligns with the market conditions.

Choose from a variety of fund options

ULIPs offer a variety of fund options. Based on your risk appetite, you can invest in equity, debt, or balanced funds. You can also switch between ULIP funds at no cost as per your needs. In this way, you can maximise your returns by taking advantage of market conditions. If the markets are volatile, you can invest in low-risk debt funds, and if they are favourable, you can invest in equity funds.

How to manage ULIP funds?

ULIP fund management ensures that returns increase, helping you achieve long-term financial goals. 
Here's how you can manage your ULIP investments:

Choose the right fund allocation

ULIPs have equity, debt, and balanced funds. Choose based on risk appetite and investment horizon.

Monitor fund performance

Track the Net Asset Value (NAV) and switch funds if required. Market conditions affect ULIP returns, so periodic reviews are essential. You can also compare the current returns with average ULIP returns in last 10 years.

Avail of fund switching facility

ULIPs provide free switching options between equity and debt funds. Use this feature as per market conditions and financial objectives.

Continue to invest for the long term

ULIPs may provide higher returns when invested for 10-15 years, as the benefits of compounding and reduced charges over time take effect.

Rebalance portfolio

Adjust fund allocation to protect gains and ensure they align with your financial goals. A properly planned ULIP strategy helps in wealth creation and risk management, maximising fund returns.

Best ULIP Plans in India 2025

Param Raksha Life
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Advantage +

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Growth +

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Pro Advance

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Start at  age 25

Start at  age 35

You get: ₹1.8 Crore

You pay: ₹18 Lakh

You get: ₹49.9 Lakh

You pay: ₹12 Lakh

What are the different types of ULIP charges?

ULIPs include a few charges associated with managing the policy that you should know.

Premium allocation charge

The premium allocation charge is a percentage of your premium that’s deducted before investing it in different funds under a ULIP.

Fund management charges

This charge is a percentage of the value of all assets, calculated mostly daily by adjusting the Net Asset Value of the fund. This charge is levied at an annual rate. It is divided by 365 and then multiplied by the number of days that have passed since the last unit valuation date.

Policy administration charges

This charge is a percentage of the Single / Annualised premium. It is calculated monthly at each anniversary by deducting the units starting from the date of the policy inception.

Mortality charges

These are the charges levied for offering the life insurance risk cover to the policyholder during the policy tenure. These charges are levied for the entire policy term and are based on the policyholder’s age and the risk..

Surrender / discontinuance charges

If you choose to surrender your policy, then a charge will be levied on the fund value when the policy is discontinued or when the funds are withdrawn, whichever comes first.

Switch charges

To ensure that you can manage and customise your own investments, some Tata AIA Life Insurance plans offer unlimited switches for each policy year, which is free of cost.

Premium redirection charges

Some ULIPs allow a maximum of 6 premium redirections or future premium allocations for each policy year, which are all free of charge. Premium redirections after this will attract a fee. Tata AIA Unit Linked Products like Fortune Pro, Fortune Maxima, Wealth Pro, Wealth Maxima, etc., do not have any premium redirection charge.

Partial withdrawal

After the mandatory lock-in period of 5 years, you can make partial withdrawals from your ULIP each policy year. The number of free partial withdrawals allowed may vary for each product.

How to manage your ULIP Investment?

Managing ULIP funds can be based on your investment preferences. At Tata AIA, you can choose the investment approach based on the following options to manage your ULIP funds.

Custom preference

It refers to manual selection, which means you can choose the fund options based on their performance and requirements, all by yourself!

Minimise losses

If your objective is to minimise losses, we provide fund options that offer intermediate growth and ensure safety.

Maximise Gains

If you want to enhance the potential gains, we offer fund options for high growth with risk.

Balanced option

We also offer options to balance risk and return for your investment goals.

Automatic asset allocation

We offer the Enhanced SMART (Systematic Money Allocation & Regular Transfer) for a structured investment into the volatile market based on your choice of an equity-oriented fund and a debt-oriented fund.

Invest more, get more!

Invest ₹5,000/month

You get

₹38 Lakh

You invest ₹5,000/month

Invest ₹10,000/month

You get

₹76 Lakh

You invest ₹5,000/month

Invest ₹15,000/month

You get

₹1.1 Crore

You invest ₹5,000/month

Invest ₹20,000/month

You get

₹1.5 Crore

You invest ₹5,000/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, Future Secure plan option under the limited payment method with 100% invested in Tata AIA MultiCap fund at 8% Rate of Return.

How to claim tax benefit on ULIP?

ULIPs include a few charges associated with managing the policy that you should know.

Tax Deduction for ULIP Premiums

Section 80C:
The premium paid towards ULIP is tax⁷ deductible up to ₹1.5 Lakh annually.
To claim this deduction, ensure the annual premium does not exceed 10% of the sum assured.

Tax Benefits on Maturity Proceeds

Exemption under Section 10(10D):

ULIP maturity proceeds are tax-free⁷ if the premium is less than 10% of the sum assured.
If the premium exceeds 10%, only the sum assured is tax-free, and returns are taxed as per applicable laws.

Long-Term Capital Gains (LTCG) Tax on ULIPs

For ULIPs issued after February 1, 2021, with a premium exceeding ₹2.5 Lakh per year, gains are subject to a 10% LTCG tax on returns above ₹1 Lakh. ULIPs with premiums below ₹2.5 Lakh remain exempt from LTCG tax.

How to avail Tax Benefits on ULIPs?

File premium payment receipts along with ITR.

The policy should comply with tax deduction limits under Section 80C and 10(10D).

For policies above the tax-free threshold, LTCG gains should be reported as per tax regulations. Rebalance Portfolio: Using ULIP tax benefits helps investors save tax while growing wealth efficiently.

What is a ULIP calculator?

A ULIP calculator is an online tool that helps you know the maturity amount, or the ULIP returns that you can receive from your Unit-Linked Insurance Plans, and determine the applicable premium. Once you provide a few details about your investment and other requirements based on the ULIP features, you can determine the premium and the expected returns.

With the help of the ULIP return calculator, you can make a reasonable comparison and analysis instead of simply going by the ULIP charges, which is only one factor for selecting a ULIP. Read More: What is a ULIP Calculator? - Features & Benefits

ULIP Calculator -Check premium in just 2 Steps

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Benefits of ULIP plan

Here are the key benefits a ULIP plan offers

Get market-linked returns

ULIP offers market-linked returns⁸, and you can choose from the available funds to grow your wealth. Additionally, it provides the flexibility to switch between funds based on your risk appetite and market outlook, helping you optimise your investment strategy.

Get death or maturity benefits

In case of the policyholder’s death, the nominees can receive either the sum assured or the fund value, whichever is higher. On the other hand, if the policyholder survives the policy period, they will be entitled to receive the fund value as the maturity benefit.

Benefit from long-term investments

ULIPs are market-linked⁸ investment instruments with a mandatory lock-in of 5 years, which makes them ideal for achieving long-term financial goals. This encourages a disciplined investment approach, allowing your corpus to benefit from the power of compounding over time.

Opt for partial withdrawals

After the mandatory lock-in period of 5 years, ULIPs allow partial withdrawals, which can be helpful to fund an emergency. This offers liquidity, enabling policyholders to manage unexpected financial needs without fully surrendering the policy.

Include add-on riders

ULIP insurance plans also offer optional riders⁹ that can enhance coverage, such as the critical illness benefit, accidental death benefit, etc. For example, the critical illness rider⁹ offers financial support to cover medical expenses if the policyholder is diagnosed with a critical illness during the policy term.

Benefit from tax deduction and exemption

ULIP premiums and payouts are eligible for tax⁷ deductions under Section 80C and exemptions under Section 10(10D), subject to the applicable tax laws. This helps individuals looking to optimise their tax planning strategies.

Difference between ULIP and traditional investment plans

Here’s how ULIP differs from traditional investment plans:

Features	ULIP (Unit Linked Insurance Plan)	Mutual Funds	PPF (Public Provident Fund)	Fixed Deposit (FD)	ELSS (Tax Saver MF)	NPS (Pension Scheme)
Returns (approx.)	8%–12% (market-linked⁸)	8%–12% (market-linked)	~7.1% (fixed)	6%–7% (fixed)	10%–15% (market-linked⁸)	8%–12% (market-linked⁸)
Risk Level	Moderate to High	Moderate to High	Low	Low	Moderate to High	Moderate
Tax Benefits⁷ (Sec 80C)	Up to Rs 1.5 lakh + Tax-Free Maturity	Up to Rs 1.5 lakh	Up to Rs 1.5 lakh	Up to Rs 1.5 lakh	Up to Rs 1.5 lakh	Up to Rs 1.5 lakh + partial tax benefit
Lock-in Period	5 years	No Lock-in Period	15 years	Varies (min 5 yrs for tax-saving)	3 years	Till Retirement (60 yrs)
Liquidity	Low (Partial after 5 years)	High	Low (Partial after 5 years)	Medium (Depending on the term)	Low	Low (Partial after 60 years or 10 years)

Which Type of Investors Should Consider ULIPs?

The following are some of the types of investors who may consider ULIPs.

Hands-on investors
: nvestors who prefer tracking fund movements regularly for increased gains can invest in ULIP. While fund managers manage your funds, it is always based on your preferences. Since ULIP provides the flexibility of switching between funds, hands-on investors can track their market performance and make changes to their funds to get better returns.
Investors across different life stages:
ULIPs are flexible enough to meet the needs of investors across different age groups. For example, someone who has just started their career and aims to build wealth can start investing in an equity-based ULIP fund option, along with availing a life cover to protect their family. On the other hand, a married individual with a family can choose a balance between risk and return with hybrid funds and the life cover it offers.
People with varying risk appetites:
ULIPs are known to offer a variety of options in debt, equity, and hybrid funds that cater to investors of all kinds. Aggressive investors and conservative investors can also choose funds based on their risk appetite and the type of returns they seek. By tracking the historical Net Asset Value (NAV), an investor can find the fund they are looking for.
Investors with medium to long-term investment horizons:
Investors looking for long-term investments can opt for ULIPs as they may be better suited for medium to long-term goals. With a mandatory lock-in period of 5 years, ULIPs help investors prepare for their future financial goals that are planned for 5-10 years or more.

What are the steps to buy ULIP plans online?

To buy a ULIP plan online in a hassle-free manner, follow the steps below:

To buy a ULIP plan online in a hassle-free manner, follow the steps below:
In the Plans tab, click on Unit Linked Insurance Plans (ULIPs)/Wealth plans.
You can see popular ULIP plans under the wealth page.
Next, provide the essential details, and choose the policy tenure and premium payment term of the policy.
Choose the mode of online payment and proceed to make the payment.

Factors to consider while purchasing a ULIP policy

Opt for adequate life cover

While purchasing a ULIP scheme, ensure choosing an adequate life cover that will protect your family's financial future by helping them manage their routine lifestyle, clear off debts, etc

Determine affordable premiums

Utilise our Tata AIA ULIP calculator to determine the most affordable premium to ensure you stay invested during the long term for increased benefits.

Know the ULIP charges

Make yourself aware of the ULIP charges and their impact on the returns to make wise investment decisions

Do not hide crucial information

As ULIP plans have a life cover component, be transparent about your medical history for adequate coverage and avoid hassles during claim settlement

Do not miss paying the premiums

Ensure you make regular investments to avoid missing a premium payment that can affect your life cover and investment objectives. It can lead to a policy lapse that can affect investment returns

Why buy ULIP plans online with Tata AIA?

Independent purchase

When you purchase our ULIP plans online, you can make an independent and informed decision based on your research using online reviews, the information on our website, and our ULIP brochures.

Check our ULIP plans and their performance

You can check and evaluate our top-performing funds online by viewing the NAV. Click here to view the NAV of our ULIP funds.

Hassle-free experience

Our convenient and quick online experience ensures that you can refer to all the information on our website, easily get in touch with our customer service team for any queries and make easy online payments through your preferred online payment mode.

What are the top ULIP investment mistakes to avoid?

There are different types of term insurance plans you can choose based on your needs. Some of them are as follows:

Adopting a short-term investment strategy

Mistake: Expecting quick investment gains within 2-3 years.
Why Avoid: ULIPs have a 5-year lock-in period and are designed for long-term wealth creation. Initial charges are generally higher but may reduce over time. Surrender charges may apply for exiting early.
Correct Approach: Stay invested for the long term to benefit from compounding and lower charges.

Risk appetite not aligned

Mistake: Choosing fund options based on popularity or advice, ignoring your risk profile.

Why Avoid: Investing in funds that don’t align with your financial goals can lead to panic-driven decisions and potential losses.

Correct Approach: Select funds as per your risk tolerance. Consider low-risk funds if you're risk-averse or close to your goals. Higher equity exposure may suit those with a long-term horizon and higher risk appetite.

Neglecting ULIP charges

Mistake: Not understanding the charges involved in a ULIP.

Why Avoid: ULIPs have various charges like premium allocation, policy administration, fund management, and mortality charges, which can affect returns, especially in the initial years of the policy term.

Correct Approach: Compare products and choose ULIPs with lower or gradually reducing charges over time.

Falling for high returns assurity

Mistake: Believing in unrealistic assurance of high returns.

Why Avoid: ULIPs are market-linked⁸; the returns depend on market performance and are not certain.

Correct Approach: Have realistic expectations and understand that market fluctuations will impact returns.

Ignoring tax rules

Mistake: Assuming the maturity amount is always tax-free⁷ without any conditions.

Why Avoid: Tax benefits⁷ under Section 80C and 10(10D) apply, but certain conditions must be met.

Correct Approach: If your annual premium exceeds 2.5 lakh, consult a tax advisor to understand the tax implications.

Not reviewing the performance of funds

Mistake: Not monitoring the fund performance and policy regularly.

Why Avoid: Without review, you may remain invested in poorly performing funds.

Correct Approach: Track fund performance regularly and switch funds or redirect premiums if needed.

Discontinue premium payments

Mistake: Stopping premium payments due to financial strain or dissatisfaction with returns.

Why Avoid: Non-payment can lead to policy discontinuation, minimal returns, and loss of benefits until the lock-in period ends.

Correct Approach: Choose a suitable policy and the premium amount you can afford throughout the policy term and stay committed.

Terms related to ULIP plans

Death Benefit

In ULIP, the death benefit is the payout given to the nominee if the life assured passes away during the policy term.

Fund Value

Refers to how much your investment is worth at any given point in time. It can be calculated by multiplying the monetary value of each unit or the Net Asset Value (NAV) by the number of units owned.

Maturity Benefit/ Survival Benefit

It is the ULIP policy fund value payable as the survival benefit at the end of the policy tenure.

Partial Withdrawal

Policyholders can opt for a partial withdrawal during an emergency, which is a specified portion of the fund value after the lock-in period.

Surrender Value

It is the fund value of your ULIP policy at the time of surrender, excluding the applicable discontinuance charges.

Switch Funds

Refers to the option of switching between the fund options based on the market conditions to minimise losses.

Top-Up Premium

Refers to the additional premium that you pay to increase your investment.

ULIP Charges

Refers to the various ULIP charges applicable to a ULIP policy, such as the Fund Allocation, Mortality, Premium Allocation, Policy Administration charges, etc.

Sum assured

Sum assured refers to the payout from a life insurance policy. In the event of the policyholder's unfortunate death during the policy term, the beneficiary receives the sum assured.

Regular-Premium Contract

Regular-premium contracts require you to pay monthly, quarterly, biannual, or annual premiums towards your ULIP.

Contract surrender

Contract surrender allows you to surrender your ULIP plan before maturity.

Myths about investing in ULIPs

The myths about investing in ULIPs are as follows.

ULIPs are only for insurance

ULIPs offer both life cover and investment. They help grow your savings over time while also protecting your family.

ULIPs have high charges

Charges in ULIPs have reduced over the years. Many plans now offer competitive fees and better transparency.

ULIPs are risky investments

ULIPs offer fund options like equity, debt, or balanced. You can switch funds based on your risk level.

ULIPs lock your funds for too long

ULIPs have a 5-year lock-in, but you can enjoy long-term gains by staying invested beyond that period.

ULIPs don’t offer returns

ULIPs have the potential to give market-linked returns⁸ with tax⁷ benefits under Section 80C and 10(10D).

Customer Reviews

Simran Yadav

Tata AIA

PR PRO

I know my family will get immediate help when they need it most. The instant payout process was explained well.

Raj Ranjane

Tata AIA

Fortune Pro 31 Dec 2023

I was worried about the cost, but [Fortune Pro] offered me great coverage at an affordable rate. [MAHESH GAIKAR] helped me find a plan that fits my budget.

Pooja Haria

Tata AIA

Param Raksha 19 Nov 2022

Best product, an all-in-one plan. I was looking for a long-term solution, and this plan explained how my family would be protected for years to come.

Vivek Upadhyay

Tata AIA

Param Raksha 2.0 12 Dec 2024

I was looking for a long-term solution, and Param Raksha 2.0 provided exactly that. Vrushali Sali explained how my family would be protected for years to come.

Why choose Tata AIA?

Top Rated Funds

Funds rated 4 or 5 stars¹ by Morningstar²

500+ Branches

Presence across major cities in India

1.4 Lakh Crore+

Assets Under Management
(AUM)¹⁰

99.41%

Individual death claim settlement ratio¹¹

89 Lakh+

Families protected so far¹²

Experienced

Tata AIA Fund Managers

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1.What is ULIP, and how does ULIP Work?

ULIP stands for Unit Linked Insurance Plan. It combines life insurance with market-linked⁸ investments, offering long-term growth, flexible fund options, maturity benefits, and includes charges and a lock-in period.

2.What is the full form of ULIP?

ULIP full form is Unit Linked Insurance Plan.

3.What are the different types of ULIP available in India?

The different types of ULIP available in India are listed below:

Equity ULIPs
Debt ULIPs
Balanced ULIPs
Child ULIPs
Retirement ULIPs

4.What is the ULIP plan NAV?

In ULIPs, NAV is the value of each unit of the fund. It helps track investment performance.

5.When should I invest in ULIPs?

There is no defined time to invest in a ULIP. It is suggested to align the investment with your financial objectives, risk tolerance, and long-term planning rather than market timing.

6.What is the right time to invest in ULIPs?

The right time to invest in a ULIP depends on your financial goals, risk tolerance, and horizon. You should start as soon as possible.

7.Do ULIPs Plans have a lock-in period?

Yes, ULIP plans typically come with a five-year lock-in period. After this period, policyholders are allowed to make partial withdrawals, subject to policy terms and applicable conditions.

8.Are ULIP Plans risky investments?

ULIP plans provide multiple fund options based on risk profiles, including equity, debt, and hybrid funds. Investors can switch funds as per market conditions to manage risk and optimise returns.

9.What are the eligibility criteria for purchasing a ULIP Policy?

The eligibility criteria differ across individual ULIP options. For accurate and detailed information, refer to the brochure of the chosen plan before making a decision.

10.Does a ULIP have life insurance coverage?

Yes, ULIPs provide life insurance coverage. In the event of the policyholder’s demise during the policy term, the nominee receives either the sum assured or the fund value, whichever is higher.

11.Can low-risk investors choose a ULIP?

Yes, low-risk investors can choose ULIPs by opting for debt or balanced funds. These funds offer stable returns with lower risk, making them suitable for conservative investors seeking long-term growth.

12.Can I buy a ULIP plan online?

Yes, you can purchase ULIP plans online through the Tata AIA Life Insurance official website. Before buying, use the ULIP calculator to estimate applicable charges and potential returns from the plan.

13.Are returns from ULIP plans guaranteed?

The returns on ULIP plans can vary depending on the combination of equity, debt, , and hybrid funds that are included in the investment. Low-risk ULIPs typically offer lower returns than high-risk equity ULIPs.

14.Is ULIP better than PPF?

ULIP offers market-linked returns8 and insurance benefits, while PPF provides guaranteed, low-risk returns. ULIPs suit risk-takers; PPF suits conservative investors seeking stable, tax-free⁷ growth.

15.What is a 5-year ULIP plan?

A 5-year ULIP plan is a market-linked⁸ insurance-cum-investment policy with a 5-year lock-in, offering life cover, flexible fund options, and potential long-term wealth creation benefits.

16.Is ULIP tax free after five years?

According to prevailing tax laws, ULIP surrender values do not attract taxes⁷ after five years.

1.Can I invest the entire amount in investment and opt out of life cover?

ULIPs offer flexible payment options, but you cannot invest the entire amount in market-linked⁸assets. A part of your premium payment is always allocated towards life cover as per policy terms.

2.Do I get to choose the fund options in the ULIP policy?

Yes, you can choose the fund options and define the investment strategy based on your financial goals – whether to minimise losses, enhance gains, or balance risk and return effectively.

1.How are the premiums divided in a ULIP?

The premiums paid under a ULIP are allocated between life insurance coverage and investment in selected market-linked⁸ funds, based on the chosen fund strategy and policy structure.

2.What are the premium payment modes under a ULIP plan?

ULIPs offer single, regular, and limited premium payment options. For regular and limited payments, you can choose from monthly, quarterly, semi-annual, or annual modes, based on your financial condition.

3.What is the limited premium payment option?

Under the limited premium payment option, premiums are paid for a fixed period, while the ULIP continues to provide life cover and investment benefits throughout the full policy term.

4.Do ULIP policy have a waiver of premium benefit?

Yes, you can enhance your ULIP policy with the Tata AIA Life Insurance Waiver of Premium Plus (Linked) Rider⁹ (UIN: 110A025V03) or Waiver of Premium (Linked) Rider⁹ (UIN: 110A026V03) to receive premium waiver⁵ benefits under specified conditions.

1.What documents are needed to file a claim?

Here is the list of documents needed to file a claim:

Original policy document
Duly filled claim form
Death certificate (in case of death claim)
Identity proof of the nominee
Address proof of the nominee
Bank account details of the nominee
Medical records (if required)
Any additional documents requested by the insurer

2.What claims can you file under a ULIP plan?

Under a ULIP plan, you can file claims for death benefits, maturity benefits, partial withdrawals, fund switches, surrender benefits, and rider⁹ benefits, depending on the policy terms and conditions.

3.How do I file a claim on my ULIP?

To submit a claim on a ULIP please contact us using one of the following methods:

Online using the Online Claim Intimation page
Email us at: customercare@tataaia.com
Call our helpline number - 1860-266-9966 (local charges apply)
Visit us at any of Tata AIA Life Insurance Company branch offices
Write to us at:

The Claims Department,
Tata AIA Life Insurance Company Limited
B- Wing, 9th Floor,
I-Think Techno Campus,
Behind TCS, Pokhran Road No.2,
Near to Eastern Express Highway,
Thane (West) 400 607.
IRDA Regn No. 110

4.How can a ULIP plan claim be processed if the nominee is outside India?

If the nominee is located outside India, they may provide attested copies of the mandatory documents either online or by email. In case of offline submission of documents, a representative in India may file the claim with any Tata AIA Life Insurance office on behalf of the nominee.

5.How to maximise returns from a ULIP?

To enhance returns from a ULIP, remain invested over the long term and periodically review your fund allocation. You can switch funds to align your investments with market trends and risk profile.

6.Who should consider investing in a ULIP?

ULIPs can be suitable for individuals seeking life insurance along with market-linked⁸ investment opportunities. They can be suitable for long-term financial goals and investors with a moderate to high-risk appetite.

ULIP - Unit Linked Insurance Plan

Vishal Kapoor

Vishal Kapoor

Girish J Kalra

Girish J Kalra

What Is ULIP?

How Does a ULIP Work?

Premium allocation

Life Insurance Component

Investment Component

Dual Benefits

Life cover

Market Linked returns:

Fund management

Lock-in period

Tax benefits

Role of Insurer and policyholder

ULIP – Life Insurance + Investment

Solution Composition

Param Raksha Life Pro +

Solution Composition

Premier SIP

Key features of ULIP plans

1. Investment and life insurance under one plan

2. Fund options based on risk profile

3. Switch between fund options

4. ULIP lock-in period

Why invest in ULIP policy?

Get dual benefits

Avoid the hassle of managing funds

Multiple fund options

Benefit from withdrawal options

Save tax up to Rs 46,8006

Flexibility

Transparency

Long-term investment

How to choose between the best ULIP plans?

1. Analysis of personal investment goals

2. Decide insurance objectives

3. Evaluate risk profile

4. Compare ULIP plans

5. Performance of ULIP funds

6. Flexibility

7. Understand different charges levied

8. Solvency ratio

9. Claim settlement ratio

Tata AIA ULIP Plans

Types Of ULIP Plans

Based on Fund Options:

Based on Purpose:

How to enhance ULIP returns?

Invest early

Invest wisely

Keep monitoring your portfolio

Choose from a variety of fund options

How to manage ULIP funds?

Choose the right fund allocation

Monitor fund performance

Avail of fund switching facility

Continue to invest for the long term

Rebalance portfolio

Best ULIP Plans in India 2025

Start now. Save more!

What are the different types of ULIP charges?

Premium allocation charge

Fund management charges

Policy administration charges

Mortality charges

Surrender / discontinuance charges

Switch charges

Premium redirection charges

Partial withdrawal

How to manage your ULIP Investment?

Custom preference

Minimise losses

Maximise Gains

Balanced option

Automatic asset allocation

Invest more, get more!

How to claim tax benefit on ULIP?

Save tax up to Rs 46,800⁶