Top 5 ULIP Plans with Highest Returns in 2025
Unit Linked Insurance Plans (ULIPs) have emerged as a popular financial instrument that combines life insurance with market-linked investments. As investors seek higher returns in 2025, ULIPs offer flexibility, tax benefits, and the potential for wealth creation.
This article evaluates the top 5 ULIP plans expected to deliver the highest returns in 2025, based on historical performance, fund management strategies, and market trends.
1. HDFC Life Pro Growth Plus
Features:
- Dual Advantage: Allocates funds to equity (for growth) and debt (for stability).
- Flexible Premium Payment: Choose between regular, limited, or single premium options.
- Loyalty Additions: Bonuses added after the 5th policy year.
Benefits:
- High-Growth Funds: Exposure to large-cap and mid-cap equity funds.
- Partial Withdrawals: Allowed after the 5th year.
- Tax Benefits: Under Sections 80C and 10(10D) of the Income Tax Act.
Expected Returns in 2025:
- Equity Fund CAGR: 12–14% (based on 10-year historical average).
- Debt Fund CAGR: 7–9%.
Why It’s a Top Performer:
HDFC Life’s robust fund management and consistent performance in volatile markets make it a reliable choice for long-term growth.
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2. LIC’s New Bima Advantage
Features:
- Dynamic Fund Strategy: Auto-shifts between equity and debt based on market conditions.
- Death Benefit: Higher of 10X annual premium or 105% of total premiums paid.
- Policy Term: 10–25 years.
Benefits:
- Guanteed Additions: 2% of the sum assured added annually after the 2nd year.
- Low Charges: Lower fund management fees (1.35% annually).
Expected Returns in 2025:
- Balanced Fund CAGR: 10–12%.
Why It’s a Top Performer:
LIC’s risk-adjusted returns and brand credibility appeal to conservative investors.
Official Document: link
3. SBI Life eWealth Insurance
Features:
- Smart Switching: AI-driven recommendations for fund switching.
- Top-Up Premiums: Increase investment during market dips.
- Rider Options: Critical illness and accidental death cover.
Benefits:
- Diversified Portfolios: Access to international equity funds.
- Online Management: User-friendly portal for tracking investments.
Expected Returns in 2025:
- International Equity Fund CAGR: 14–16%.
Why It’s a Top Performer:
SBI Life’s tech-driven approach and global diversification enhance return potential.
Official Document: link
4. ICICI Pru Wealth Builder II
Features:
- Goal-Based Investing: Customize funds for education, retirement, etc.
- Systematic Transfer Plan (STP): Gradually shift from debt to equity.
- Partial Surrender: Withdraw up to 20% of fund value after 3 years.
Benefits:
- Wealth Boosters: Additional units allocated at milestones.
- Low Mortality Charges: Cost-effective life cover.
Expected Returns in 2025:
- Multi-Cap Fund CAGR: 13–15%.
Why It’s a Top Performer:
ICICI’s focus on goal alignment and flexible withdrawals suits millennials.
Official Document: link
5. Max Life Fast Track Super
Features:
- Accelerated Wealth Creation: Higher equity allocation (up to 99%).
- LifeStage Options: Adjust risk profile as you age.
- Survival Benefits: Periodic payouts post the 15th year.
Benefits:
- High Liquidity: Loan facility available after 3 years.
- Bonus Units: Additional units for premiums paid on time.
Expected Returns in 2025:
- Aggressive Equity Fund CAGR: 15–18%.
Why It’s a Top Performer:
Max Life’s aggressive equity focus caters to high-risk investors seeking maximum returns.
Official Page: link
Comparison Table: Top 5 ULIP Plans (2025 Projections)
| Plan Name | Premium Range (Annual) | Policy Term | Expected CAGR (%) | Unique Feature |
|---|---|---|---|---|
| HDFC Life Pro Growth Plus | ₹50K–₹5L | 10–30 years | 12–14 | Loyalty Additions |
| LIC New Bima Advantage | ₹30K–₹10L | 10–25 years | 10–12 | Auto Fund Rebalancing |
| SBI Life eWealth | ₹50K–₹3L | 15–25 years | 14–16 | AI-Driven Fund Switching |
| ICICI Pru Wealth Builder | ₹75K–₹2L | 10–20 years | 13–15 | Goal-Based STP |
| Max Life Fast Track Super | ₹1L–₹10L | 15–30 years | 15–18 | LifeStage Risk Adjustment |
Key Factors to Consider When Choosing a ULIP
- Fund Performance History: Analyze 5–10-year returns of underlying funds.
- Charges: Look for low mortality, administration, and fund management fees.
- Flexibility: Check switching options, top-ups, and partial withdrawals.
- Risk Appetite: Match equity-debt allocation to your comfort level.
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FAQs
Q1. Are ULIP returns guaranteed?
No, ULIP returns are market-linked and subject to equity/debt market risks.
Q2. How do ULIPs compare to mutual funds?
ULIPs offer insurance + investment, while mutual funds focus solely on wealth creation.
Q3. What are the tax benefits?
Premiums up to ₹1.5L under Section 80C; maturity proceeds tax-free under Section 10(10D).
Q4. Can I exit a ULIP early?
Yes, but surrender charges apply (typically 1–3 years).
Q5. How are ULIPs taxed on death claims?
Death benefits are tax-free for nominees.
Conclusion
The top 5 ULIP plans for 2025 highlighted here balance risk, returns, and flexibility. While HDFC Life and Max Life cater to aggressive investors, LIC and SBI Life offer stability. Always consult a financial advisor to align ULIPs with your goals.
Note: Past performance doesn’t guarantee future returns. Market risks apply.
Also Read: How to check life insurance policy status online
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