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ULIP Returns in 20 Years

20-year ULIPs offer a unique combination of investment and insurance benefits. They can help you build a corpus for your long-term financial goals while also providing your family with financial security in case of an unforeseen event. The longer you stay invested, the better your returns will be.

ULIP Returns in 25 YearsULIP Returns in 30 YearsULIP Returns in 35 YearsULIP Returns in 40 Years


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Features and Benefits of HDFC Life Sanchay Par Advantage

ULIP Returns in 20 Years

20 Years ULIP Returns
June 26, 2023


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

Every good financial plan includes investment and life insurance coverage. Unit-Linked Insurance Plans (ULIPs) combine the benefits of both under a single policy. ULIPs enable you to invest in market-linked funds while providing life coverage to safeguard your family’s finances. A 20-year ULIP helps you meet your long-term goals. Let’s better understand how these policies work.

What Is a 20-Year ULIP Policy?

A 20-year ULIP policy provides life cover for 20 years. If the policyholder dies within the 20-year term, their family will receive a lump sum payout. In addition to life coverage, the 20-year ULIP policy allows the policyholder to invest in various fund options, such as equity, debt, or balanced funds. The premium paid towards the policy is divided between the life cover and the investment, providing a dual benefit. Investors can choose the fund allocation based on their risk appetite and future financial goals.

How Does a 20-Year ULIP Policy Work?

Let’s understand how a ULIP for 20 years works with an example. Thirty-year-old Rahul is about to become a father. He wants to ensure that his child can take advantage of every opportunity. Rahul decides to invest to finance his child’s higher education. Assuming his child wants to go overseas for a master’s degree, he purchases a 20-year ULIP. Every month, Rahul invests a portion of his income in the ULIP. Part of the amount goes towards providing him with life coverage. The rest gets invested in the funds he selected. Rahul’s son decides to start his own business at 21. The corpus Rahul accumulated over 20 years through the ULIP allows his son to achieve this goal.

Why Choose a 20-Year ULIP Policy?

Let’s see how a ULIP investment for 20 years benefits you.

  • Market-linked Returns

    ULIPs let you invest in market-linked equity and debt funds. You can select a balanced fund that invests in both to diversify your portfolio. Market-linked plans often provide higher returns than traditional low-risk savings.

  • Flexibility

    ULIPs allow policyholders to choose their investment funds and make switches to take advantage of market fluctuations. Investors who understand the market can trigger fund changes to boost their returns.

  • Partial Withdrawals

    ULIPs allow partial withdrawals in financial emergencies. Policyholders can liquidate some funds to help pay for their child’s education or marriage without exiting the plan.

  • Tax Benefits

    ULIPs offer multiple tax benefits under Section 80C# and Section 10(10D) of the Income Tax Act of 1961. The amount you invest enjoys tax deductions under Section 80C# of the Income Tax Act.

    Proceeds received on surrender/partial withdrawal/maturity of ULIP plan are exempt from tax subject to provisions mentioned in Section 10(10D) i.e if the premium payable for any of the years during the policy term does not exceeds 10% of the death sum assured.

    In addition to the above, for policies issued after 1st Feb 2021 tax exemption on maturity proceeds will be available if premium paid in any of the years towards such matured polices does not exceed Rs.2,50,000. Out of the total matured policies in a financial year, exemption u/s 10(10D) will be available only towards those polices who’s aggregate premium in any years does not exceed Rs. 2,50,000/.

    Income from rest of the policies exceeding the mentioned limit will be chargeable as capital gains.

    Death proceeds are also exempt from tax for all ULIP plans.

  • Life Coverage

    Your ULIP policy offers life coverage, providing your loved ones with financial security and stability, regardless of what happens to you.

  • Long-term Investment

    With ULIPs, the longer you stay invested, the better. Your ULIP returns in 20 years will be much better than returns over five to ten years. A 20-year ULIP helps you build a corpus for your long-term financial goals.

How Are 20-Year ULIP Policy Return Rates Calculated?

The rates of a 20-year ULIP policy depend on the policyholder’s age, the sum assured, the chosen premium amount, and the selected investment funds. The premium amount gets divided between the life cover and the investment. The returns on the investment depend on the performance of the chosen market-linked funds.

A 20-year ULIP policy helps you build wealth for your long-term goals while securing your family’s future with life coverage. These plans offer market-linked returns, so policyholders must evaluate their risk appetite and goals before selecting a policy. Always check the plan terms and enhance your coverage, if possible, with riders.

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ARN - MC/05/23/2055

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Francis Rodrigues Francis Rodrigues

Francis Rodrigues has a decade long experience in the insurance sector, and as SVP, E-Commerce and Digital Marketing, HDFC Life, manages the online sales channel, as well as digital and performance marketing. He has had hands-on experience in setting up sales channels and functional teams from scratch over a career spanning 2 decades.

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Author Profile Written By:
Vishal Subharwal Vishal Subharwal

Vishal Subharwal heads the Strategy, Marketing, E-Commerce, Digital Business & Sustainability initiatives at HDFC Life. He is responsible for crafting and ensuring successful implementation of the overall organisation strategy.

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Reviewed by Life Insurance Experts


We at HDFC Life are committed to offer innovative products and services that enable individuals live a ‘Life of Pride’. For over two decades we have been providing life insurance plans - protection, pension, savings, investment, annuity and health.

# Subject to conditions specified u/s 80C and u/s 10(10D) of the Income Tax Act, 1961.

The afore stated views are based on the current Income-tax law. Tax Laws are also subject to change from time to time. Also, the customer is requested to seek tax advice from his Chartered Accountant or personal tax advisor with respect to his personal tax liabilities under the Income-tax law.

The Unit Linked Insurance products do not offer any liquidity during the first five years of the contract. The policyholders will not be able to surrender or withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of fifth year.

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, The name of the company, 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.