
Unit Linked Insurance Plans (ULIPs) are among the most versatile financial instruments in India, combining life insurance with investment options. While some investors choose ULIPs for tax-saving and insurance purposes, many now seek ULIPs with high returns to build long-term wealth. With an evolving market and newer fund management strategies, ULIPs today are more transparent, low-cost, and return-focused than ever before.
In this detailed guide, we’ll explore the best ULIPs offering high returns in 2025, how to compare them, and who should invest in them.
What Are ULIPs and How Do They Work?
ULIPs are hybrid financial products that provide:
- Life insurance coverage
- Market-linked returns via investments in equity, debt, or balanced funds
When you pay premiums, a portion goes toward life cover, while the rest is invested in chosen fund types. Over time, depending on fund performance and market conditions, ULIPs can deliver significant returns, especially for long-term investors.
Key Features of ULIPs
Feature | Description |
---|---|
Investment + Insurance | Offers dual benefits of protection and wealth creation |
Tax Benefits | Deductions under Section 80C and tax-free maturity under Section 10(10D) (conditions apply) |
Fund Switching | Free switches between equity, debt, or hybrid funds |
Lock-in Period | 5 years minimum |
Flexibility | Choose premium amount, fund type, and cover amount |
Partial Withdrawals | Allowed after lock-in, subject to policy terms |
Why Choose ULIPs for High Returns?
While traditional insurance plans provide guaranteed but low returns, ULIPs invest in market instruments and can deliver returns of 8% to 12% or more annually, depending on fund performance.
Benefits for High Return Seekers:
- Equity-oriented funds within ULIPs outperform conservative options over time.
- Fund switching enables tactical allocation based on market cycles.
- Long-term compounding potential due to tax efficiency and market exposure.
Top 7 ULIPs with High Returns in India (2025)
Here is a curated list of some of the best ULIPs offering high returns, based on their 3–5 year fund performance, low charges, and investor trust.
ULIP Plan | Provider | Average 5-Year Return | Fund Options | Min Premium |
---|---|---|---|---|
ICICI Pru Signature | ICICI Prudential | 12–14% (Equity Fund) | Equity, Debt, Balanced | ₹30,000/year |
HDFC Life Click 2 Wealth | HDFC Life | 11–13% | Equity Advantage Fund, Balanced Fund | ₹24,000/year |
Bajaj Allianz Life Goal Assure | Bajaj Allianz | 11–12.5% | 8 Fund Options | ₹25,000/year |
Max Life Online Savings Plan | Max Life | 10–12% | Growth, Balanced, Conservative | ₹25,000/year |
Tata AIA Fortune Pro | Tata AIA | 10.5–11.5% | Equity, Debt, Multi-cap | ₹25,000/year |
SBI Life Smart Wealth Assure | SBI Life | 10–11.5% | Equity Optimiser Fund | ₹24,000/year |
Edelweiss Tokio Wealth Secure+ | Edelweiss Tokio | 11–13% | Flexi-cap Equity, Hybrid, Bond | ₹20,000/year |
Detailed Review of High-Return ULIPs
1. ICICI Prudential Signature
- Returns: Up to 14% in equity funds
- Why it’s good: Offers multiple portfolio strategies including Fixed Portfolio Strategy and LifeCycle-based Portfolio Strategy.
- Charges: Competitive fund management and allocation charges
2. HDFC Life Click 2 Wealth
- Returns: 11–13% in Equity Advantage Fund
- Unique Feature: Waiver of Premium on Accidental Disability; loyalty additions start from year 5
- Ideal for: Tech-savvy, long-term investors
3. Bajaj Allianz Goal Assure
- Returns: 12.5% for top-performing funds over 5 years
- Perks: Return of life cover charges at maturity, loyalty additions, and fund boosters
- Flexibility: Wide range of fund options and auto-switching strategies
4. Max Life Online Savings Plan
- Returns: Equity Growth Fund returns over 10% CAGR
- Benefits: Loyalty additions and return of mortality charges
- Best for: Online buyers looking for low-cost, high-return ULIPs
5. Tata AIA Fortune Pro
- Returns: 10–11.5%
- Advantages: Wide variety of funds including sustainability-focused and ethical investing options
- Standout: Strong customer service reputation
6. SBI Life Smart Wealth Assure
- Returns: Consistent performance of equity-focused funds
- USP: Single premium ULIP – pay once, stay invested
- Investor Type: Risk-tolerant, one-time investors
7. Edelweiss Tokio Wealth Secure+
- Returns: Aggressive Flexi-cap fund shows 12–13% CAGR
- Innovations: Rising Star Benefit (child cover), Systematic Withdrawals
- Good for: Parents planning for children’s education and long-term goals
ULIP Fund Types and Their Impact on Returns
Fund Type | Risk | Return Potential | Best For |
---|---|---|---|
Equity Fund | High | 10–15% | Long-term growth seekers |
Debt Fund | Low | 4–7% | Conservative investors |
Balanced/Hybrid | Medium | 7–10% | Moderate risk takers |
Liquid Fund | Very Low | 3–5% | Parking short-term funds |
If high returns are your goal, choose equity or balanced funds and stay invested for 10+ years.
Charges to Consider in ULIPs
Even though recent ULIPs are cost-effective, some charges still impact net returns:
Charge Type | Typical Range |
---|---|
Fund Management Charge | 1.35% p.a. |
Policy Administration Charge | ₹60 – ₹100/month |
Premium Allocation Charge | 0–2% (some plans offer zero) |
Mortality Charge | Based on age and sum assured |
Switching Charge | Free up to a limit (4–6 switches/year) |
💡 Tip: Look for ULIPs with zero premium allocation charges and return of mortality charges for maximum gains.
ULIPs vs Mutual Funds – Where Do You Earn More?
Feature | ULIPs | Mutual Funds |
---|---|---|
Life Cover | Yes | No |
Tax Benefits | 80C + 10(10D) | Only ELSS under 80C |
Lock-in | 5 years | 3 years (ELSS), else no lock-in |
Charges | More complex | Lower & transparent |
Switching | Free within ULIP | Exit load/tax implications apply |
Returns | 8–12% on average | 10–15% (equity MF) |
➡️ Choose ULIPs for long-term goals with insurance. For pure investment, mutual funds may offer better liquidity.
How to Choose the Best ULIP for High Returns
Here are some key points to help you pick the right plan:
✅ Check historical fund performance (minimum 5-year track record)
✅ Compare fund options (especially equity and hybrid)
✅ Analyze charges – go for low allocation and admin charges
✅ Look for bonuses like loyalty additions and return of mortality charges
✅ Use online ULIP return calculators for projections
✅ Assess fund switching flexibility and investment strategies offered
Who Should Invest in High-Return ULIPs?
ULIPs are ideal for:
- Salaried individuals planning for retirement or children’s education
- HNIs looking for tax-efficient long-term investments
- Risk-taking investors wanting insurance + equity exposure
- Goal-based investors needing wealth creation and protection
Final Thoughts: Are High-Return ULIPs Worth It?
Yes, if you’re planning to stay invested for 10–15 years, choose aggressive funds, and monitor performance regularly, ULIPs can be a powerful tool to build wealth while staying insured. Their tax efficiency and flexibility make them stand out in the current financial landscape.
FAQs on Best ULIPs with High Returns
Q1. Can ULIPs give 15% returns?
A. Some equity ULIP funds have delivered 12–15% over 5+ years, but returns are market-linked and not guaranteed.
Q2. What is the minimum duration to invest in ULIPs for good returns?
A. At least 10 years is recommended to ride out market volatility and enjoy compounding.
Q3. Are ULIPs risk-free?
A. No, they carry market risk. Opt for debt/hybrid funds if you’re conservative.
Q4. How to switch funds in a ULIP?
A. Most insurers offer online fund switching. You can move from equity to debt (or vice versa) based on market outlook.
Q5. Are ULIP returns taxable?
A. ULIP maturity proceeds are tax-free under Section 10(10D), provided annual premium is less than ₹2.5 lakh for policies issued after Feb 1, 2021.