Reformed Unit-Linked Insurance Plans (ULIPs) have introduced lower charges, making them a more viable investment option. Plans like Bajaj Allianz Life Goal Assure, HDFC Life Click 2 Wealth, and ICICI Pru Signature now feature minimal fund management fees, zero premium allocation charges, and bonuses like loyalty benefits and wealth boosters.
hese plans now offer low-cost structures, making it easier for investors to achieve long-term financial goals. Here’s a guide to seven ULIPs with the lowest charges and insights into how they can impact your returns.
1. Bajaj Allianz Life Goal Assure
Why it stands out: Bajaj Allianz Life Goal Assure is popular for its low fund management fees and zero premium allocation charges, making it one of the most cost-effective ULIPs. Its feature of return of mortality charges (ROMC) is also beneficial, as the mortality charge is refunded after the policy term, maximizing returns.
2. HDFC Life Click 2 Wealth
Cost advantage: Known for its zero policy administration fees, HDFC Life Click 2 Wealth also has competitive fund management charges. With several fund options and flexibility, this ULIP appeals to those seeking both growth and cost efficiency.
3. ICICI Pru Signature
Fee structure: ICICI Pru Signature offers low fund management fees and zero policy administration fees. One of its standout features is also the addition of loyalty benefits and wealth boosters, which can greatly improve returns over time.
4. SBI Life Smart Wealth Assure
Charges benefit: With zero allocation charges and competitive fund management fees, this ULIP provides a cost-effective insurance and investment solution. The ROMC feature ensures that mortality charges are refunded at maturity, which adds to the overall returns.
5. Aditya Birla Sun Life Wealth Assure
Cost-efficient features: This ULIP has low premium allocation and policy administration fees, alongside loyalty additions and flexibility in choosing premium payments, enhancing cost savings and returns over time.
6. Max Life Platinum Wealth Plan
Key cost aspects: The Max Life Platinum Wealth Plan is a zero-premium allocation plan with low fund management charges. It also offers wealth boosters periodically, which can help in significantly improving your investment corpus over time.
7. Tata AIA Life Insurance Wealth Pro
Low charges advantage: Tata AIA Life’s Wealth Pro ULIP is known for its low-cost structure, including zero premium allocation charges, low fund management fees, and wealth boosters to improve your fund value and returns.
How ULIP charges affect your returns
ULIPs typically carry charges, such as premium allocation, fund management, and mortality charges, which can reduce your returns. However, these reformed ULIPs have minimized these charges, resulting in higher returns, especially in the long term. Additionally, loyalty bonuses and wealth boosters offered by several ULIPs enhance your investment value, making these plans cost-effective and lucrative for goal-based investing.
Investing in ULIPs with the lowest charges can help you enjoy the benefits of wealth creation while staying insured, making them a dual-purpose tool. As always, compare different ULIPs based on charges, fund options, and bonus features to select the one that aligns best with your financial goals.
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