- Webpages
- Documents
- HDFC Life ClassicAssure PlusInvestment
- HDFC Life ClassicAssure PlusInvestment
- HDFC Life ClassicAssure PlusInvestment
For NRI Customers
(To Buy a Policy)
-
![Contact Image]()
Call (All Days, Local charges apply)
-
![Contact Image]()
Email ID
-
![Contact Image]()
Whatsapp
(If you're our existing customer)
-
![Contact Image]()
Call (Mon-Sat, 10am-9pm IST, Local Charges Apply)
-
![Contact Image]()
Email ID
For Online Policy Purchase
(New and Ongoing Applications)
-
![Contact Image]()
Call (All Days & Toll free)
-
![Contact Image]()
Schedule a call
-
![Contact Image]()
Whatsapp
-
![Contact Image]()
Give missed call to buy a policy
-
![Contact Image]()
Email
Branch Locator
-
![Contact Image]()
Locate a branch
For Existing Customers
(Issued Policy)
-
![Contact Image]()
Whatsapp
-
![Contact Image]()
Call (Mon to Sat, from 10 am to 7 pm, Call charges apply)
-
![Contact Image]()
Email
Fund Performance Check
-
![Contact Image]()
Call (Missed Call)
Is It Advisable To Have ULIP Along with a Term Plan?
Table of Content
In this policy, the investment risks in the investment portfolio is borne by the policyholder
If you are shopping for your very first life insurance policy, it’s likely that you may opt for a term insurance plan. This is a pure life cover that offers only death benefits. The upside is that term plans are highly cost-effective, so you can purchase a sizable cover of Rs. 1 crore or more at extremely affordable premiums.
However, if you want to expand your life insurance coverage, you may consider buying other types of policies later. One such type of life cover is a Unit Linked Insurance Plan (ULIP). Let’s take a closer look at the meaning of ULIPs, how they work and whether it is advisable to have a ULIP along with a term plan.
ULIP: Meaning and How it Works
A Unit Linked Insurance Plan is a type of life insurance plan that gives you a life cover along with various investment opportunities. Your insurance premium is utilised in part to cover the cost of life insurance and in part to meet your investment goals.
You can choose from different kinds of ULIP funds to invest in, such as debt funds, equity funds and hybrid funds. At the time of maturity, you will receive the sum assured under the ULIP and/or the fund value of your investments.
Buying a ULIP Along with a Term Plan
If you already have a term insurance plan, you may be unsure about buying a ULIP as an additional cover. However, depending on your goals and financial requirements, buying a Unit Linked Insurance Plan along with a term plan may actually benefit you and make it easier to achieve your goals.
Check out some of the top advantages of having the best ULIP plan in addition to term insurance.
Investment Opportunities
The best ULIP plans offer a unique blend of insurance and investment. Unlike pure term insurance plans, a portion of the premium you pay for a ULIP is invested in different ULIP funds of your choice. This provides potential opportunities for capital appreciation and allows you to tap into the returns from debt instruments, equity or both, based on your risk appetite.
Maturity Benefits
Term insurance plans provide a significant life cover in the form of death benefits. ULIPs supplement this cover and offer maturity benefits as well. If you survive the policy term, you can benefit from the investment corpus that you have created over the years. So, by purchasing a ULIP in addition to a term plan, you get the advantage of death benefits and maturity benefits.
Maximisation of Tax Benefits
The premiums you pay for term insurance plans and ULIPs both qualify for tax deductions under 80C of the Income Tax Act. This deduction is capped at Rs. 1.5 lakhs. With the best ULIP plan and term plan in your portfolio, you can maximise your tax benefits and reduce your overall tax liability easily.
Conclusion
The bottom line is that a term plan and a Unit Linked Insurance Plan both offer different types of benefits. The choice of life insurance between these two types of coverage depends on your financial situation and goals.
If you are looking for a pure life cover at affordable premiums, a term plan may be suitable. However, if you want the benefit of insurance and market-linked investments, the best ULIP plans offer you both these benefits. To get the best of both worlds, you can start by purchasing a term plan and then expand your life insurance coverage with the best ULIP plans.
Related Articles:
- Money Management Tips to Improve Your Finances
- Fixed Income Investment Schemes That Offer Guaranteed Returns
- Wealth Creation – Unlocking Your Financial Freedom with ULIPs
- 5 Ways Retirement Saving Can Help You
- Term Insurance Lapse and Its Effect on Future Coverage and Premiums
- Am I Permitted to Make a Change in My Term Insurance Smoking Status
ARN- ED/11/23/6471
Term Plan Articles
Investment Articles
Savings Articles
Life Insurance Articles
Tax Articles
Retirement Articles
ULIP Articles
Subscribe to get the latest articles directly in your inbox
Health Plans Articles
Child Plans Articles
Popular Calculators
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.
Written By:
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.
Reviewed By:
Here's all you should know about life insurance.
We help you to make informed insurance decisions for a lifetime.
HDFC Life
Reviewed by Life Insurance Experts
HDFC LIFE IS A TRUSTED LIFE INSURANCE PARTNER
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.
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
For more details on risk factors, associated terms and conditions and exclusions please read sales brochure carefully before concluding a sale. 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.
Popular Searches
- Term Insurance Calculator
- Investment Plans
- Investment Calculator
- Investment for Beginners
- Best Short Term Investments
- Best Long Term Investments
- 5 year Investment Plan
- savings plan
- ulip plan
- retirement plans
- health plans
- child insurance plans
- group insurance plans
- income tax calculator
- bmi calculator
- compound interest calculator
- income tax slab
- Income Tax Return
- what is term insurance
- Ulip vs SIP
- tax planning for salaried employees
- HRA Calculator
- Annuity From NPS
- Retirement Calculator
- Pension Calculator
- nps vs ppf
- short term investment plans
- safest investment options
- one time investment plans
- types of investments
- best investment options
- best investment options in India
- Term Insurance for Housewife
- Money Back Policy
- 1 Crore Term Insurance
- life Insurance policy
- NPS Calculator
- Savings Calculator
- life Insurance
- Gratuity Calculator
- Zero Cost Term Insurance
- critical illness insurance
- itc claim
- deductions under 80C
- section 80d
- Whole Life Insurance
- benefits of term insurance
- types of life insurance
- types of term insurance
- Benefits of Life Insurance
- Endowment Policy
- Term Insurance for NRI
- Term Insurance for Women
- Term Insurance for Self Employed
- Benefits of Health Insurance
- Health Insurance for Senior Citizens
- Health Insurance for NRI
- Best Term Insurance Plan for 1 Crore
- personal accident insurance
- Annuity Calculator