Introduction to ULIPs+

A Unit Linked Insurance Plan (ULIP) is a unique investment instrument with the added protection of life insurance. Through systematic investments and market-linked returns, ULIPs allow you to create wealth for your long-term goals like your dream house, your child's education, your retirement and more. At the same time, it also ensures that your goals are achieved even in case of an unforeseen event, through a life cover.

ULIPs enable you to place your money in various equity or debt funds, as per your risk appetite. While the premiums you pay are deductible from your taxable income under Section 80C#, the returns are also tax-free subject to Section 10(10D)# of the Income Tax Act, 1961. Thus, ULIPs are a triple bonanza of monetary security for your family, capital appreciation, and tax savings.

Here’s a clear understanding of how ULIPs work to help you get more value and the above-mentioned benefits.

How ULIPs Work

  • To venture into the capital market with ULIPs, you have to decide the level of life cover, premium amount, premium payment option and policy term to match your financial protection and savings needs
  • You can select the premium payment frequency as monthly, half-yearly, or yearly basis your convenience and opt between an upfront, lump-sum payment, and recurring payments on an annual, half-yearly, or monthly basis
  • One part of your premium goes towards providing you a life cover
  • The other larger part of your premium is invested in the stock market via equity, debt, or hybrid funds based on your preferences
  • Equities place your money into stocks. Debt funds channel your capital into bonds, government securities, and other low-risk investment tools. Hybrid funds balance the risky yet high return-potential of equities with the stability of debt funds
  • The money invested in these funds defines the value of your policy. The longer you stay invested, the better your chances of getting higher returns
  • In case of an unfortunate incident during the policy tenure, your nominee will receive the sum assured to fulfil their dreams

Features of Unit Linked Insurance Plans

Investment allocation

ULIPs let you select investment channels according to your risk appetite. You can choose to be aggressive with equities, decide to stay conservative with debt funds, or enjoy the best of both asset classes with balanced funds. You can also direct your future premiums towards the funds of your choice.

Fund switch

If the performance of your selected funds fails to satisfy, or you foresee a change in market conditions, you can switch from one fund type to another. Thus, you can ride out market fluctuations by diverting your investments into debt funds during slowdowns and change back to equities during upswings. All this is available within the same plan, at any time, without any additional costs or charges.

Partial withdrawal

In case of an emergency, you can partially withdraw money from your funds after the five-year lock-in period. The number of withdrawals permitted and the cap on withdrawn amounts depend on the insurance providers.


You can invest a surplus amount over and above your base premium to buy additional units and generate higher revenues.

Many new-age policies like ICICI Pru LifeTime Classic* offer you these features. Invest today in the right financial plan to achieve your future goals.


With a clear idea of how ULIPs work, you can now make a more informed decision towards this investment avenue. It is beneficial to stay invested for a longer duration. The effect of market volatilities are compensated in the long term. With time, higher percentages of your premiums go into the investment funds, empowering you to achieve all your future goals.

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+ Unlike traditional products, unit linked insurance products are subject to market risk, which affect the Net Asset Values and the customer shall be responsible for his/her decision. The names of the Company, product names or fund options do not indicate their quality or future guidance on returns. Funds do not offer guaranteed or assured returns. This is a unit linked insurance plan. In this policy, the investment risk in investment portfolio is borne by the Policyholder. Unit linked Insurance products do not offer any liquidity during the first five years of the contract. The Policyholder will not be able to surrender/withdraw the monies invested in unit linked insurance products completely or partially till the end of the fifth year. On surrender after completion of five years the surrender value will be the Fund Value including Top Up Fund Value, if any.
* This is not a product brochure. For more details on the risk factors, terms and conditions, and the charges and benefits related to Surrender, Premium Discontinuance, Revival etc., please read the sales brochure carefully before concluding the sale.
Past performance is not indicative of future performance.
# Tax benefits under the policy are subject to conditions under Section 80C, 10(10D), 115BAC and other provisions of the Income Tax Act, 1961. Goods and Services tax and Cesses, if any will be charged extra as per prevailing rates. Tax laws are subject to amendments made thereto from time to time. Please consult your tax advisor for details, before acting on above.
ICICI Pru LifeTime Classic UIN 105L155V04
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