loaderImage
loaderImage
info

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

What’s a ULIP, really? arrow-right
Let’s break down how you can stay insured and invest at the same time. 

ULIP, in a Nutshell

ULIP, in a Nutshell

What

A 2-in-1 plan where one part of your premium secures life cover and the other part is invested.

Why

Helps you save for long-term goals like a home or car, while keeping your family protected.

When

The sooner you begin, the more your money can grow and manage market changes.
Background Image

Why ULIPs Work for Many

benefit-icon

Create wealth, not just savings

Unlike traditional plans with fixed returns, ULIPs give you the chance to grow with the market.
benefit-icon

Long term goals, sorted

Dreaming of a house or planning an international trip? Staying invested in a ULIP for a long time helps you build that big corpus step by step.
benefit-icon

More than just market returns

ULIPs give you the option to choose a higher life cover so your family is protected with a guaranteed payout, no matter how the market performs.
benefit-icon

Tax savings* you’ll actually notice

Save money while making money. Your ULIP premiums can get you tax deductions under Section 80C*, and the maturity benefits can be tax-free under Section 10(10D)*. 

 

Disclaimer*: Tax benefits are subject to conditions under the Income Tax Act, 1961 and may change with prevailing tax laws.

benefit-icon

Flexes as your needs change

ULIPs let you adjust as life changes.You can invest monthly or yearly, add top-ups when you get extra income, choose your funds, switch between them, and add riders** for extra protection.
Know Better, Choose Better Smart hacks, deep dives, and myth-busters, all in one place
  • ULIP
/content/dam/hdfcklarifylife/revamp/know-better-choose-better/ulip/first-things-first/who-invests-in-ulip/who-invests-in-ulip_rb.png

Who Should Invest in ULIPs? The Ideal Investor Profile

/content/dam/hdfcklarifylife/revamp/know-better-choose-better/ulip/what-it-really-costs/ulip-charges/costs-in-ulip-01.png

ULIP Charges Explained: A Complete Guide

5-Year Lock-in in ULIPs: Benefits for Returns
How to Select the Best Funds in Your ULIP Plan
/content/dam/hdfcklarifylife/revamp/know-better-choose-better/ulip/myth-busters/difficult-to-liquidate-your-ulips.jpg

Myth: It’s Difficult to Liquidate ULIPs in Emergency

/content/dam/hdfcklarifylife/revamp/know-better-choose-better/ulip/myth-busters/life-cover-decreases-when-market-dips.jpg

Myth: ULIP Life Cover Decreases When Market Dips

/content/dam/hdfcklarifylife/revamp/know-better-choose-better/ulip/myth-busters/ulips-have-high-switching-charges.jpg

Myth: ULIPs Have High Switching Charges

What Is ULIP and How Does It Benefit Your Investment?
What Is ULIP and How Does It Benefit Your Investment?
Know More
  • Equity Funds
  • Debt Funds
  • Fund Switch
  • New Fund Offer
  • Mortality Charges
  • Fund Management Charges
  • Lock-in Period

No Jargon Zone

View All
Your Klarity Checklist
Just tick through this cheat sheet to know that we have Klarified it all!
Check the boxes to see your score arrow-right
checklistItem1
Getting Started...
Your progress: 0/11 Answered
Explore HDFC ULIP Plan
Banner image

Frequently Asked Questions, Klarified.

What are the risks involved in ULIPs?

Since a part of your premium is invested in market-linked funds, ULIPs carry market risks. You can manage this risk by choosing or including debt funds, which are generally more stable than equity funds.

What is the lock-in period in ULIPs?

All ULIPs have a mandatory 5 year lock-in period. You cannot withdraw or surrender before this period. If you stop paying premiums early, your money moves to a Discontinued Policy (DP Fund), earning a fixed interest (currently around 4% p.a.) until lock-in ends.

What charges apply in a ULIP?

ULIPs come with a few charges that vary by plan. These usually include a premium allocation charge taken upfront, a fund management charge capped at 1.35% per year*, a mortality charge for life cover, policy administration charges, and fees for switching funds or making partial withdrawals if applicable. Some plans may waive certain charges or not have them at all, so it is always good to check the plan details

 

*As per the Insurance Product regulations, 2024.

Disclaimer: Refer to the policy document for complete list of charges.

What is the death benefit in a ULIP, and how is it calculated?

This is the money your nominee gets if you pass away during the policy term. In ULIP, the death benefit is typically the higher of the sum assured or the fund value. For eg., if your sum assured is ₹10L and fund value is ₹12L, the nominee will get ₹12L.
View All
Disclaimer: The Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender/withdraw the monies invested in Linked Insurance Products completely or partially till the end of fifth year. Life Insurance Coverage is available in this product. For more details on risk factors, associated terms and conditions and exclusions please read sales brochure carefully or contact your relationship manager before concluding a sale. Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. HDFC Life Insurance Company Limited is only the name of the Insurance Company, HDFC Life is only the name of the insurance company . The name of the company, name of the brand and name of the contract 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 of the insurer. 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.

ARN - DM/11/25/28756