ULIP Returns in 5 Years
Unit-linked insurance plans, or ULIPs, are a type of life insurance policy that offers comprehensive benefits of insurance and investment. These plans are gaining high popularity nowadays as they offer huge upside potential depending upon market performance.
Unlike mutual funds that offer direct investment in the equity market, ULIPs also offer direct investment in the Indian stock market, holding plenty of companies from all large, mid, and small caps.
What are ULIP Returns in 5 Years?
Unit-linked insurance plans (ULIPs) are insurance plans that have specific funds from multiple sectors to receive investment from the investor's point of view. But how much do ULIPs return in 5 years? Generally, ULIPs offer returns between 12% to 15% per annum. However, the return can go higher or lower than this range, as it depends entirely on market performance.
Here is a list of the best ULIP returns in 5 years:
| ULIP Name | Fund Name | AUM | Returns | ||
|---|---|---|---|---|---|
| 5 years | 10 years | RSI | |||
| Tata AIA Capital Guarantee Solution | Midcap Momentum Index Fund | 204 crore | 38.7% | 26.8% | - |
| Aditya Birla Capital Guarantee Solution | Nifty Alpha 50 Index Fund | 12 crore | 32.9% | 26.5% | - |
| PNB Metlife Capital Guarantee Life Solution | Mid-cap Fund | 465 crore | 32.8% | - | 24.4% |
| HDFC Capital Guarantee Solution | Discovery Fund | 6938 crore | 32.5% | - | 26.2% |
| ICICI Prudential Capital Guarantee Solution | Mid Cap 150 Momentum 50 Fund | 413 crore | 38.7% | 26.8% | - |
How Does a 5-Year ULIP Work?
Let us understand how a 5-year ULIP works:
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Plan Selection
The first stage of working with a ULIP is selecting the right plan. You can review all the plans thoroughly and choose the specific plan that suits your budget.
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Making Payment
Once you have chosen the right plan, the next step is payment. You can select any payment mode, such as credit card, debit card, net banking, etc.
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Allocation of Premium
Once you are done with your payment, it's time to allocate the premium. As ULIPs offer the dual benefits of investment and insurance, you have to choose how much percentage of your premium has to go to each segment.
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Fund Selection
As ULIPs offer multiple funds in a single plan, you can choose the one that suits you best. Each fund has specific companies from large, mid, and small caps. You can select based on your investment goals.
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Fill Proposal Form
This is the last and most important step of a ULIP. In this step, you need to fill in all your personal and nominee information.
Why Should You Invest in Top ULIP Plans?
The following are the reasons why you should invest in ULIP Plans:
- It offers a good return on your investment in a short tenure.
- It offers flexible premium payment terms.
- Some plans offer unlimited switches within funds.
- It offers insurance coverage along with investment.
- It offers tax benefits as per sections 80C, 80D, and 10(10D).
How to Purchase a ULIP Plan From the Insurer?
Following are the steps one should take to purchase a ULIP:
- Step 1 - Visit the official website of the insurer.
- Step 2 - Click on the investment plan button.
- Step 3 - Click on the ULIP Plans section.
- Step 4 - Compare all the plans as per your needs.
- Step 5 - Select a plan and fill in the mandatory information.
- Step 6 - Make payment and download the premium receipt.
Final Words
Unit-linked insurance plans, or ULIPs, are great investment alternatives as they offer dual benefits of insurance and investment in the same policy. If we talk about 5-year returns on ULIPs, they offer exceptionally good returns between 12-15% compared to any banking instrument such as FDs, RDs, etc.
In case you want to know more about ULIP returns in 5 years and other ULIP Plans, you may contact PolicyX.com. Our certified insurance advisors work 24/7 to resolve every possible query for you.
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