Top ULIP Plans in India 2025 are in high demand as financial planning takes center stage this year. ULIPs (Unit Linked Insurance Plans) remain one of the most popular investment-cum-insurance options for Indian investors. Combining the benefits of market-linked investments with life insurance, they offer both wealth creation and financial security in a single product.
What Are ULIPs and Why Choose Them in 2025?
A Unit Linked Insurance Plan (ULIP) is a hybrid financial product that combines insurance protection with investment opportunities. PaA portion of your premium is allocatedrt of your premium goes toward life insurance coverage. The remaining amount is invested in equity, debt, or balanced funds based on your risk appetite.
In 2025, ULIPs continue to attract investors because:
- Tax Benefits: ULIPs qualify for tax deductions under Section 80C. They offer tax-free maturity benefits under Section 10(10D), making them tax-efficient investment options.
- Market-Linked Growth: Unlike traditional insurance plans, ULIPs provide exposure to stock markets, enabling potentially higher returns.
- Flexibility: Investors can switch between funds, top-up their investments, and even partially withdraw, offering liquidity and customization.
To dive deeper into ULIP tax advantages, check out our detailed article on Life Insurance Tax Benefits.
Top ULIP Plans in India for 2025
Here are some of the best ULIP plans that have earned acclaim for their performance, fund management, and features this year:
1. HDFC Life Click 2 Wealth
HDFC Life’s Click 2 Wealth ULIP plan is perfect for those looking for long-term wealth creation combined with life cover. It offers:
- Multiple fund options with varying risk levels
- Partial withdrawal facility after 5 policy years
- Loyalty additions for staying invested longer
- Premium payment options including single, limited, or regular pay
2. ICICI Prudential Life Insurance ULIP
Known for strong fund management, ICICI Prudential’s ULIP offers:
- Wide range of fund choices, including equity and debt funds
- Top-up premium options to boost investments
- Fund switching without any extra cost
- Death benefits that safeguard your family’s future
3. SBI Life Smart Wealth Builder
SBI Life’s ULIP is designed for wealth creation with flexibility. Features include:
- Choice of 9 diversified funds
- Switch between funds up to 12 times a year
- Premium redirection facility
- Loyalty additions and maturity benefits
4. Max Life Fast Track Super
This plan is a good choice for those who want insurance protection with consistent wealth growth:
- Multiple fund options including balanced funds
- Partial withdrawal after the 5th policy year
- Flexible premium payment terms
- Online buy facility with easy documentation
How to Choose the Right ULIP in 2025?
Selecting the best ULIP depends on your financial goals, risk appetite, and investment horizon. Here are some tips to guide you:
- Assess Your Risk Profile: If you’re risk-averse, opt for funds with higher debt allocation. For aggressive investors, equity funds offer better returns.
- Check Fund Performance: Look for consistent fund performance over 3-5 years rather than short-term gains.
- Understand Charges: ULIPs come with premium allocation, fund management, and mortality charges. Lower charges mean better returns.
- Evaluate Flexibility: Fund switching, partial withdrawals, and premium top-ups add valuable flexibility.
- Claim Settlement Ratio: Always pick insurers with a high claim settlement ratio for smoother claim processing.
For more insurance product reviews and comparisons, explore BimaTalk’s insurance guides.
Important Tax Benefits of ULIPs in India
ULIPs enjoy attractive tax benefits under the Indian Income Tax Act:
- Section 80C: Premiums paid up to ₹1.5 lakh per annum are deductible from taxable income.
- Section 10(10D): Maturity proceeds and death benefits are tax-free, provided premiums do not exceed 10% of the sum assured.
Note: As of April 1, 2013, the annual premium must not exceed 10% of the sum assured. This is necessary for the maturity proceeds to remain tax-exempt under Section 10(10D). For detailed rules and recent updates, see ICICI Prudential’s guide on Section 10(10D). It includes higher limits for certain categories. It also covers ULIPs issued from February 2021 onward.ICICI Prudential Life Insurance
Frequently Asked Questions (FAQ) on ULIPs in India 2025
1. Are ULIPs a good investment in 2025?
Yes, ULIPs remain a good choice if you seek long-term wealth creation combined with insurance. However, compare plans and understand charges before investing.
2. Can I switch funds in ULIP?
Most ULIPs allow free fund switches between equity, debt, and balanced funds, helping you manage risk dynamically.
3. What is the lock-in period for ULIPs?
ULIPs have a mandatory lock-in period of 5 years, during which withdrawals are restricted.
4. How are ULIPs taxed?
Premiums qualify for deductions under Section 80C, and maturity proceeds are tax-exempt under Section 10(10D), subject to conditions.
5. Can I partially withdraw money from my ULIP?
Yes, partial withdrawals are allowed after the lock-in period, depending on the plan terms.
Final Thoughts
ULIPs offer a balanced approach to investment and insurance in 2025. Choosing the right ULIP requires evaluating your financial goals, risk tolerance, and understanding plan features and charges.
Explore our in-depth reviews. Check the latest updates on BimaTalk to stay informed. Pick the best ULIP that fits your needs.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Consult a financial advisor before investing.
Last Updated on August 15, 2025 by Singh sumit