Low-Cost ULIP Plans: A Smart Investment for Future
Published on December 22, 2024
.png)
Unit Linked Insurance Plans (ULIPs) offer a combination of investment and insurance, making them an attractive financial product for individuals looking to secure their future while generating potential returns. While many ULIPs come with high charges, some offer low-cost structures, making them an ideal choice for budget-conscious investors. Below are some of the top low-cost ULIP plans available in the market, offering various benefits such as inbuilt life cover, unlimited free switches, low fund management charges, and more.
1. AXIS Max Life Online Savings Plan
Low-Cost Features:
No Allocation or Policy Admin Charges: This plan comes with zero charges on the allocation of units and policy administration, making it one of the most cost-efficient ULIPs available in the market.
Lowest Fund Management Charges: AXIS Max Life offers some of the lowest fund management charges, ensuring that the majority of your investment is used for wealth creation.
Inbuilt Life Cover: This plan provides inbuilt life cover throughout the policy term, offering financial protection to your loved ones.
Partial Withdrawals: You can make partial withdrawals of a minimum ₹5,000 after completing 5 years of the policy term. The plan allows up to two partial withdrawals per policy year.
Unlimited Free Switches: With unlimited free switches, you have the flexibility to move your funds between different investment options to maximize your returns.
Best Funds: Some of the top funds in this plan include:
Nifty Momentum Quality 50 Fund
High Growth Fund
SmallCap Quality Index Fund
Nifty Alpha 50 Fund
Nifty 500 Momentum 50 Fund
Midcap Momentum Index Fund
This plan is ideal for individuals looking for a low-cost, flexible, and high-return investment option.
2. Aditya Birla Life Insurance Wealth Smart Plus
Low-Cost Features:
No Allocation or Policy Admin Charges: Similar to AXIS Max Life, the Wealth Smart Plus plan does not charge for the allocation of units or policy administration, making it highly cost-effective.
Inbuilt Life Cover: The plan provides a life cover throughout the policy term.
Unlimited Partial Withdrawals: You can make unlimited partial withdrawals from the fund value after completing five full policy years, provided you are at least 18 years old.
Unlimited Free Switches: The plan allows you to switch between various funds at no extra cost to optimize returns.
Best Fund: A standout fund in this plan is the Nifty Midcap 150 Momentum 50 Index Fund, which focuses on growth in midcap stocks with strong momentum.
This plan is best suited for investors looking for both life coverage and flexibility in fund management with unlimited switches.
3. HDFC Life Click2Invest
Low-Cost Features:
No Allocation or Policy Admin Charges: The Click2Invest plan also comes with no charges on the allocation of units and policy administration, ensuring a greater portion of your premium goes toward investment.
Inbuilt Accidental Death Benefit (ADB): An additional benefit of the Click2Invest plan is the inbuilt Accidental Death Benefit, which provides extra coverage in case of accidental death.
Inbuilt Accidental Total and Permanent Disability Benefit: This plan also includes an inbuilt Accidental Total and Permanent Disability Benefit, offering protection against disabilities resulting from accidents.
Inbuilt Life Cover: The plan includes life cover throughout the policy term.
Partial Withdrawals: You can withdraw any amount from the policy after 5 years, with up to four partial withdrawals allowed each year.
Free Switches: The plan offers four free switches annually, enabling you to move your money between funds to optimize returns.
Best Funds: The plan offers access to high-performing funds such as:
Top 500 Momentum 50 Fund
Opportunities Fund
Discovery Fund
Flexi Cap Fund
HDFC Life Click2Invest is a good option for those seeking life and accidental coverage with a variety of fund options and low-cost structure.
4. Canara HSBC Life Insurance Promise4Growth - Wealth
Low-Cost Features:
Loyalty Additions: This plan offers loyalty additions every 5th policy year, starting from the 5th year of the policy. These additions are added to the fund value to enhance the overall returns.
Wealth Boosters: Wealth Boosters are credited based on the premiums received and are a percentage of the average fund value over the last 60 monthly anniversaries.
No Allocation or Policy Maintenance Charges: Like the other plans, this plan does not charge for the allocation of units or policy maintenance, which reduces the overall cost.
Return of Mortality Charges: The total mortality charges deducted during the policy term are returned and added to the fund value at maturity.
Inbuilt Life Cover: The plan includes life cover throughout the policy term.
Partial Withdrawals: Minimum ₹5,000 can be withdrawn after 5 years, and multiple withdrawals are allowed within a policy year.
Unlimited Free Switches: Flexibility to move money between various funds to maximize returns.
Best Fund: One of the top-performing funds in this plan is the Midcap Momentum Growth Index Fund, ideal for those looking for growth in midcap stocks.
This plan is great for those who want both long-term growth through wealth boosters and loyalty additions, as well as flexibility in managing their investments.
Conclusion
Low-cost ULIPs provide an excellent balance of life insurance and investment opportunities, making them an attractive option for those looking to invest in both their financial security and wealth creation. The plans listed above—AXIS Max Life Online Savings Plan, Aditya Birla Life Insurance Wealth Smart Plus, HDFC Life Click2Invest, and Canara HSBC Life Insurance Promise4Growth - Wealth—are some of the best choices for investors seeking low-cost, flexible, and high-return ULIP plans. Each of these plans offers features like inbuilt life cover, partial withdrawals, unlimited free switches, and a variety of investment funds, making them ideal for those looking to optimize their portfolio with minimal charges.
1. AXIS Max Life Online Savings Plan
Low-Cost Features:
No Allocation or Policy Admin Charges: This plan comes with zero charges on the allocation of units and policy administration, making it one of the most cost-efficient ULIPs available in the market.
Lowest Fund Management Charges: AXIS Max Life offers some of the lowest fund management charges, ensuring that the majority of your investment is used for wealth creation.
Inbuilt Life Cover: This plan provides inbuilt life cover throughout the policy term, offering financial protection to your loved ones.
Partial Withdrawals: You can make partial withdrawals of a minimum ₹5,000 after completing 5 years of the policy term. The plan allows up to two partial withdrawals per policy year.
Unlimited Free Switches: With unlimited free switches, you have the flexibility to move your funds between different investment options to maximize your returns.
Best Funds: Some of the top funds in this plan include:
Nifty Momentum Quality 50 Fund
High Growth Fund
SmallCap Quality Index Fund
Nifty Alpha 50 Fund
Nifty 500 Momentum 50 Fund
Midcap Momentum Index Fund
This plan is ideal for individuals looking for a low-cost, flexible, and high-return investment option.
2. Aditya Birla Life Insurance Wealth Smart Plus
Low-Cost Features:
No Allocation or Policy Admin Charges: Similar to AXIS Max Life, the Wealth Smart Plus plan does not charge for the allocation of units or policy administration, making it highly cost-effective.
Inbuilt Life Cover: The plan provides a life cover throughout the policy term.
Unlimited Partial Withdrawals: You can make unlimited partial withdrawals from the fund value after completing five full policy years, provided you are at least 18 years old.
Unlimited Free Switches: The plan allows you to switch between various funds at no extra cost to optimize returns.
Best Fund: A standout fund in this plan is the Nifty Midcap 150 Momentum 50 Index Fund, which focuses on growth in midcap stocks with strong momentum.
This plan is best suited for investors looking for both life coverage and flexibility in fund management with unlimited switches.
3. HDFC Life Click2Invest
Low-Cost Features:
No Allocation or Policy Admin Charges: The Click2Invest plan also comes with no charges on the allocation of units and policy administration, ensuring a greater portion of your premium goes toward investment.
Inbuilt Accidental Death Benefit (ADB): An additional benefit of the Click2Invest plan is the inbuilt Accidental Death Benefit, which provides extra coverage in case of accidental death.
Inbuilt Accidental Total and Permanent Disability Benefit: This plan also includes an inbuilt Accidental Total and Permanent Disability Benefit, offering protection against disabilities resulting from accidents.
Inbuilt Life Cover: The plan includes life cover throughout the policy term.
Partial Withdrawals: You can withdraw any amount from the policy after 5 years, with up to four partial withdrawals allowed each year.
Free Switches: The plan offers four free switches annually, enabling you to move your money between funds to optimize returns.
Best Funds: The plan offers access to high-performing funds such as:
Top 500 Momentum 50 Fund
Opportunities Fund
Discovery Fund
Flexi Cap Fund
HDFC Life Click2Invest is a good option for those seeking life and accidental coverage with a variety of fund options and low-cost structure.
4. Canara HSBC Life Insurance Promise4Growth - Wealth
Low-Cost Features:
Loyalty Additions: This plan offers loyalty additions every 5th policy year, starting from the 5th year of the policy. These additions are added to the fund value to enhance the overall returns.
Wealth Boosters: Wealth Boosters are credited based on the premiums received and are a percentage of the average fund value over the last 60 monthly anniversaries.
No Allocation or Policy Maintenance Charges: Like the other plans, this plan does not charge for the allocation of units or policy maintenance, which reduces the overall cost.
Return of Mortality Charges: The total mortality charges deducted during the policy term are returned and added to the fund value at maturity.
Inbuilt Life Cover: The plan includes life cover throughout the policy term.
Partial Withdrawals: Minimum ₹5,000 can be withdrawn after 5 years, and multiple withdrawals are allowed within a policy year.
Unlimited Free Switches: Flexibility to move money between various funds to maximize returns.
Best Fund: One of the top-performing funds in this plan is the Midcap Momentum Growth Index Fund, ideal for those looking for growth in midcap stocks.
This plan is great for those who want both long-term growth through wealth boosters and loyalty additions, as well as flexibility in managing their investments.
Conclusion
Low-cost ULIPs provide an excellent balance of life insurance and investment opportunities, making them an attractive option for those looking to invest in both their financial security and wealth creation. The plans listed above—AXIS Max Life Online Savings Plan, Aditya Birla Life Insurance Wealth Smart Plus, HDFC Life Click2Invest, and Canara HSBC Life Insurance Promise4Growth - Wealth—are some of the best choices for investors seeking low-cost, flexible, and high-return ULIP plans. Each of these plans offers features like inbuilt life cover, partial withdrawals, unlimited free switches, and a variety of investment funds, making them ideal for those looking to optimize their portfolio with minimal charges.