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ULIP Returns in 25 Years

A 25-year ULIP policy can help you secure your financial future by offering life insurance coverage and the potential for higher returns through market-linked investments. It is a flexible investment option that allows you to switch between funds and add riders to the policy.

ULIP Returns in 30 YearsULIP Returns in 35 YearsULIP Returns in 40 YearsULIP For Wealth Creation


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Features and Benefits of HDFC Life Sanchay Par Advantage

ULIP Returns in 25 Years

25 Years ULIP Returns
June 26, 2023


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

As the cost of living continues to rise, you must plan and invest in your future. One way to do so is through a Unit-Linked Insurance Plan (ULIP) for 25 years. The policy helps individuals create a secure financial future by investing in various market-linked funds for 25 years. During the policy tenure, the investor receives life coverage, offering financial security to their loved ones. Let’s better understand these plans and how they can help you fulfil your goals.

What Is a 25-Year ULIP Policy?

Insurance companies offer 25-year ULIP plans as a comprehensive insurance-cum-investment policy for long-term financial goals. You pay regular premiums that get split into two. One part goes towards providing life coverage and pays for the company’s administrative and fund management charges. The rest gets invested in various funds. You can select the fund allocation based on your risk appetite and future financial goals.

How Does a 25-Year ULIP Policy Work?

Investing in a ULIP for 25 years helps you meet your long-term financial goals. Let’s better understand how a ULIP investment for 25 years works with an example. Vikram, a 35-year-old software engineer, purchased a 25-year ULIP and selected a sum assured of Rs. 1 crore. Vikram wanted to build a corpus to help him and his wife after retirement. Vikram decided to purchase a Waiver of Premium rider with his ULIP. Unfortunately, Vikram met with a fatal accident at 48. His wife received the sum assured payout of Rs. 1 crore, which helped her maintain her standard of living and pay off their outstanding debts. The insurance company waived off all future premiums and kept the plan active. After 25 years, his wife received the maturity amount, which helped her remain financially independent in her retirement.

Why Choose a 25-Year ULIP Policy?

Opting for a 25-year ULIP offers many benefits. Here’s why you should consider purchasing such a plan.

  • Market-linked Returns

    ULIPs allow debt and equity market-linked investments. These investments can provide higher returns than traditional savings plans.

  • Flexibility

    ULIPs provide the flexibility to choose your investment avenues and make switches based on market conditions. Additionally, ULIPs allow partial withdrawals in financial emergencies.

  • Tax Benefits

    ULIPs fall under the EEE or exempt-exempt-exempt category, so you enjoy tax exemptions and deductions under Section 80C# and Section 10(10D) of the Income Tax Act of 1961 subject to the conditions mentioned in the provisions of the Income Tax Law.

    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 during a difficult time.

  • Long-term Investment

    The longer you stay invested in a ULIP, the better. ULIP returns in 25 years will likely be better than returns over five or ten years.

How Are 25-Year ULIP Policy Return Rates Calculated?

ULIP policy rates depend on the policy tenure, the fund allocation and market fluctuations. Since ULIPs invest in market-linked funds, the return rate depends on market performance. While trying to project your returns, you must consider the insurance company’s fees. Remember, they deduct a portion of your premium to provide life coverage and take care of their fund management and administration costs, which lowers your investment amount. You can use an online ULIP calculator to understand your estimated returns before investing.

A 25-year ULIP policy is a great investment option for individuals who want to secure their financial future. It offers life insurance coverage and the potential for higher returns through market-linked investments. Policyholders can switch between funds and add riders to the policy, making it a flexible investment option. However, it’s important to note that ULIPs are subject to market risks, and the returns are not guaranteed.

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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.