ULIP Maturity Returns Online

ULIP Maturity Returns Online

Secure your future with ULIP maturity returns online. Affordable and reliable coverage options to protect your loved ones in 2026.
 

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ULIP plans

ULIP plans (Unit Linked Insurance Plans) are smart investment tools that combine life insurance with market-linked growth. You get the dual benefit of protecting your loved ones and building wealth over time. Whether you're saving for a dream goal or just want better returns than traditional plans, ULIPs offer flexibility, transparency, and control. And the best part? You can start small and scale up as you grow.

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  • Invest in ULIP, starting at Rs. 3,000/month*
  • Combine insurance and investment in one plan
  • Choose between equity, debt, or balanced funds
  • Option to switch funds based on market trends
  • Tax benefits under Section 80C and 10(10D)
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Unit Linked Insurance Plans (ULIPs) are a popular investment-cum-insurance option in India. They offer a dual benefit of wealth creation and financial protection. ULIPs provide market-linked returns, allowing investors to grow their funds over time. However, understanding the taxation of ULIP maturity returns is essential for effective financial planning. While ULIPs were earlier fully tax-exempt, recent amendments have introduced taxation based on premium amounts. This article explains how ULIP maturity returns are taxed, ways to calculate them, and how to maximise benefits while claiming them online.

How to calculate ULIP maturity returns?


ULIP maturity returns depend on factors like the policy term, fund performance, and market conditions. Understanding the calculation helps investors make informed decisions.


Factors influencing ULIP maturity returns:
 

  • Fund performance – The returns depend on how well the chosen funds (equity, debt, or hybrid) perform in the market.
     
  • Premium payment tenure – Longer premium payment terms lead to better fund accumulation.
     
  • Market fluctuations – ULIP returns are market-linked, making them subject to volatility.
     
  • Fund management charges – Charges deducted by insurers impact final maturity payouts.
     
  • Formula for ULIP maturity returns- ULIP maturity returns are calculated based on the Net Asset Value (NAV):
    Maturity Amount = Total units allocated × NAV at maturity

Key benefits of ULIP maturity returns

ULIPs offer numerous advantages at maturity, making them a preferred investment choice.

Top benefits of ULIP maturity returns:
 

  • Wealth accumulation – Long-term investments in ULIPs help build substantial wealth through market-linked growth.
     
  • Tax-exempt returns (subject to conditions) – If the annual premium is below Rs. 2.5 lakh, maturity proceeds are tax-exempt under Section 10(10D).
     
  • Life cover protection – ULIPs provide insurance coverage along with investment benefits.
     
  • Flexibility in fund allocation – Investors can switch between equity and debt funds based on risk appetite.
     
  • Liquidity through partial withdrawals – ULIPs allow partial withdrawals after the lock-in period, offering financial flexibility.
     

Explore ULIP plans according to your financial needs and future goals for suitable returns. Get quote!

Pro Tip

Create wealth and meet your financial goals with a ULIP investment plan, start investing from Rs. 3,000/month.

Best practices for maximising ULIP maturity returns

Strategic planning helps investors maximise ULIP returns.

Tips to optimise ULIP maturity benefits:
 

  • Choose funds wisely – Select funds aligned with risk appetite and financial goals.
     
  • Stay invested long-term – Longer investment periods yield higher returns due to compounding.
     
  • Monitor market trends – Keep track of market conditions and adjust fund allocations accordingly.
     
  • Leverage tax benefits – Ensure premiums remain within tax-exempt limits for maximum benefits.
     
  • Minimise withdrawals – Avoid excessive partial withdrawals to allow funds to grow.
     
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How to claim ULIP maturity returns online?

Claiming ULIP maturity returns online is a seamless process.

Steps to claim ULIP maturity proceeds:
 

  • Check policy maturity date – Ensure the policy has reached its maturity period.
     
  • Log in to the insurer’s website – Access the customer portal and navigate to the maturity claim section.
     
  • Submit required documents – Provide identity proof, policy documents, and bank details.
     
  • Verify fund value – Check the NAV-based fund value before proceeding with withdrawal.
     
  • Request payout – Apply for maturity proceeds, and the amount will be credited to the registered bank account.
     

Conclusion

ULIPs provide a tax-efficient way to build wealth while ensuring insurance coverage. While tax benefits depend on premium amounts, strategic fund management can enhance returns. By understanding the taxation rules, calculation methods, and best practices, investors can optimise their ULIP maturity proceeds. Using online portals simplifies the claims process, ensuring hassle-free access to maturity benefits.

Frequently asked questions

Frequently asked questions

What factors determine ULIP maturity returns?

ULIP maturity returns depend on fund performance, premium tenure, market conditions, and fund management charges. Staying invested long-term and selecting the right fund allocation can help maximise returns.
 

Can I withdraw my ULIP maturity proceeds online?

Yes, ULIP maturity proceeds can be withdrawn online through the insurer’s portal. The process involves submitting necessary documents and verifying the final fund value before requesting the payout.
 

Can I switch funds within my ULIP to improve returns?

Yes, ULIPs offer fund-switching options, allowing investors to move between equity and debt funds. Monitoring market trends and adjusting fund allocations can help maximise returns over time.
 

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Disclaimer

*T&C Apply. Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Life Insurance Limited (Formerly known as Bajaj Allianz Life Insurance Company Limited), HDFC Life Insurance Company Limited, Life Insurance Corporation of India (LIC), Bajaj General Insurance Limited(Formerly known as Bajaj Allianz General Insurance Company Limited), SBI General Insurance Company Limited, ACKO General Insurance Company Limited, HDFC ERGO General Insurance Company, TATA AIG General Insurance Company Limited, ICICI Lombard General Insurance Company Limited, New India Assurance Limited, Chola MS General Insurance Company Limited, Zurich Kotak General Insurance Company Limited, Star Health & Allied Insurance Company Limited, Care Health Insurance Company Limited, Niva Bupa Health Insurance Company Limited, Aditya Birla Health Insurance Company Limited and Manipal Cigna Health Insurance Company Limited under the IRDAI composite registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure & policy wordings carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors before proceeding to purchase an insurance product. Visitors are hereby informed that their information submitted on the website may also be shared with insurers. BFL is also distributor of other third party products from Assistance service providers such as CPP Assistance Services Private Limited, Bajaj Finserv Health Limited. etc. All product information such as premium, benefits, exclusions, value added services etc. are authentic and solely based on the information received from the respective Insurance company or the respective Assistance provider company.

Note- While we have made all the efforts and taken utmost care in gathering precise information about the products, features, benefits etc. However, BFL cannot be held liable for any direct or indirect damage/loss. We request our customers to conduct their research about these products and refer to the respective products sales brochure and policy/membership wordings before concluding sales.