When it comes to money, everyone desires growth and safety together. There are numerous people looking for the best savings scheme that not only saves them for the future but also provides high returns on their money. One such popular choice found in India is ULIP (Unit Linked Insurance Plan). It is famous for providing high ULIP returns coupled with the security of insurance. But how can you decide if ULIP is suitable for you? And what are the best savings plan in India through which you can earn more on your money? Let’s understand in simple language.
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What is a Savings Plan?
It is a money box with advantages. You deposit money into it periodically, and it accumulates over time. The primary function is to save in anticipation of future needs such as your child’s education, wedding, house purchase, or even your own retirement. Unlike conventional savings in a bank, these plans also offer you additional growth as they are tied to investments or insurance gains.
What is ULIP and Why is it Well-Liked?
ULIP means Unit Linked Insurance Plan. It’s a combination of life insurance and investment. That is:
- Part of your money is used for life insurance (to cover your loved ones if anything happens to you).
- The rest is invested in funds such as equity (shares), debt (bonds), or a combination of both.
Therefore, ULIP offers you two advantages simultaneously – insurance and growth of wealth.
ULIP is popular because it offers flexibility. You can decide how to invest – in conservative debt funds, high-yielding equity funds, or a mix of both. In the long run, ULIPs are able to deliver much more returns than conventional savings plans.
Why Invest in a High ULIP Return Savings Plan?
The following are some reasons why individuals like savings plans that are attached to ULIP:
- Good Returns – ULIPs invest in funds, and if you remain for 10–15 years, you can realize good growth as compared to bank savings.
- Dual Benefit – You receive insurance cover along with investment growth in a single plan.
- Tax Savings – You can deduct the premium you pay under Section 80C, and the maturity value is tax-free under Section 10(10D) (subject to regulation).
- Flexibility – You can transfer from one fund to another based on the market.
- Long-Term Growth – The longer you invest, the more power of compounding works in the growth of your money.
Best Savings Plans in India with High ULIP Returns
Some of the most common savings schemes that provide good ULIP returns in India are:
HDFC Life Click 2 Wealth ULIP:
- Provides life cover as well as investment growth.
- No charges for premium allocation, so more of your money is invested.
- More than one fund option such as equity, debt, and balanced funds.
- Partial withdrawal option after 5 years.
Ideal for: Those who desire flexibility and no additional charges.
ICICI Pru Signature ULIP:
- Has life cover as well as wealth creation options.
- Zero premium allocation fees.
- Loyalty benefits earned after a few years.
- Large investment fund options.
Best suited for: Investors looking for long-term loyalty benefits.
SBI Life Smart Wealth Assure:
- Single premium ULIP – pay once and get returns for several years.
- Simple to hold, no stress of paying annually.
- Life insurance cover is included.
Best suited for: Individuals who do not wish to pay premiums annually.
Bajaj Allianz Life Goal Assure ULIP:
- Guarantees back the cost of mortality charges on maturity.
- Several fund options.
- Life cover and growth of funds.
Ideal for: Individuals seeking to recover charges and receive improved returns.
Max Life Online Savings Plan ULIP:
- Can be purchased entirely online.
- Uncomplicated, transparent, and inexpensive.
- Flexible choices to select funds based on your risk.
Ideal for: Technology-friendly individuals who prefer online plans.
Kotak e-Invest ULIP:
- Personalized plan with varied options.
- Flexible to switch between funds multiple times.
- No premium allocation fees.
Best for: Individuals who prefer to actively control their investments.
Things to Remember Before Selecting a ULIP
Though ULIPs provide high returns, you should also keep in mind:
- Long-Term Product – ULIP performs well if you remain invested for 10–15 years. Withdrawal at an early stage may not provide good returns.
- Market-Linked – As the returns are market-dependent, there may be fluctuations in the short run.
- Charges – ULIPs carry charges such as fund management charge, mortality charge, etc. But most of the new ULIPs carry lower charges.
- Lock-In Period – ULIP carries a lock-in of 5 years, i.e., you cannot withdraw the money before that.
How to Select the Best Savings Scheme with ULIP Returns?
Here are some tips:
- Check Your Goal – If your goal is long-term such as child’s education or retirement, ULIP can be a suitable option.
- Compare Returns – Consider historical fund performance of various ULIPs.
- See the Charges – Lower charges translate into higher returns in the long term.
- Flexibility – Opt for a plan with simple switching between debt and equity.
- Insurance Cover – Always verify the amount of life cover offered.
Who Should Invest in ULIP?
ULIPs are most appropriate for:
- Young professionals who wish to build wealth and also secure their family.
- Parents looking to save for their child’s education or wedding.
- Individuals planning for retirement.
- Anyone having the ability to hold an investment horizon of 10–15 years.
Conclusion
The ideal savings plan is one that is aligned with your goals, provides protection, and allows your money to grow. ULIPs are amongst the wisest ways to balance this requirement since they provide life insurance as well as decent ULIP returns. If you are looking for security as well as higher growth, a savings plan based on ULIP may be the best for you.
Keep in mind, don’t treat ULIP as an investment for the short term. Consider it as a long ride where patience is rewarded. The sooner you begin, the more wealth you can generate for your future.
So, look into the best savings plans, compare them with each other, and choose the one that best suits your dreams. Your money should grow, and ULIPs can be your best friend in doing so.
