Published On : Tue, Jul 17th, 2018

5 Best LIC ulip plans with low premiums


ULIP stands for Unit Linked Insurance Plan. This is a product offered by Insurance companies which gives the investors integrated benefit of both, insurance and investment under a single plan. This is different from pure insurance policies as it offers dual benefit.

Unit Trust of India (UTI) launched the first ULIP and over the course of time the insurance market has flooded with companies offering ULIP schemes to serve the people looking for a product which could satisfy their need of both, investment and insurance.


Types of ULIPs on the basis of Purpose

The best classification for the ULIPs is on the basis of the purpose that they serve. Different purpose of ULIPs is –

  • Retirement

In this type of plan, the payment has to be made during the tenure of your employment and this amount is automatically collected and is paid in the form of annuities to the policyholder after the retirement.

  • Wealth Collection

These plans are best suited for those in their late 20s and early 30s as they involve primarily accumulation for wealth over the course of time. Investment in such plans provides flexibility and easy aids in funding any future financial goal.

  • Children Education

Under no circumstance, the education of your child should be put on stake due to any unforeseen event, as a parent you always want to assure that. There are some plans where a ULIP provides money in small amounts during the key events of your child’s life and ensures that no unforeseen event hinders their education and growth.

  • Health

ULIPs provide financial assistant during medical contingencies along with common benefits.

Why ULIPs are a good choice?

  • Transparency in structure and features
  • Provides flexibility in switching between the funds
  • Tax benefit
  • Additional coverage options
  • Options for changing the frequencies of premium

In a market full of insurance companies and each claiming themselves to be the best, how would you decide which one is the best? Based on the cost here is a list of best ULIPs offered by LIC with lowest charges –

  1. Fortune Plus– This plan is a combination of insurance and investment plan. It grows your money over a period of time. Buyers can choose a cover that suits their needs the best and make it flexible. The flexibility that this policy offers gives the buyers different options to choose from. Below is the list of benefits this policy offers.

Attractions of these policies are–

  • Premium payment term –5 years
  • 4 different types of investment funds to choose from. Ease in switching from one to another fund.
  • Provision of partial withdrawal
  • Entitlement of death benefits and benefits on maturity.
  1. Profit Plus This policy offered by Life Insurance Corporation is ideal for those who wish to have flexibility in their finances and want to stay protected.

Attractions of this policy are–

  • Assured sum ranging from 1.25 times to 5 times their annual premium
  • Partial withdrawal facility available
  • 4 different types of investment funds to choose from. Ease in switching from one to another fund.
  • Fund value paid on the maturity of the plan
  • Individuals can choose if they want to receive money in instalments.


  1. Money Plus I–This plan offered by Life Insurance Corporation gives a dual benefit. It acts both as an investment and insurance scheme. This scheme drives you to use your income judiciously and smartly. It acts as a guide for using your income rightly at right place. There are many benefits of availing this policy.

Attractions of this policy are–

  • Choice of choosing between 4 different fund types.
  • Flexibility in payment of premium –annually, half yearly, quarterly or monthly.
  • Policy term –10 to 30 years
  • Eligible for partial withdrawal
  • Assured minimum sum equal to 5 times the annual premium paid


  1. Child Fortune Plus– Children are the future, no parent in the world would not want to secure the future of their kids. They can’t afford to let financial crunch impact their children’s life or education. The Child Fortune Plus plan by Life Insurance Corporation ensures that children do not come face to face with any financial problems. This plan is specially for those whose kids are upto 17 years old.

Attractions of this policy are –

  • Financial security for children
  • Choice in payment of premium –Lump sum or regular
  • 4 different types of funds to be chosen from
  • Permission of partial withdrawal so that you don’t face nay financial crunch.


  1. Market Plus I Market Plus I is one the best options for those who are looking forward to plan their retirement and want a secure life after that. Who doesn’t want a secured life post retirement? This policy gives the best benefits as it acts as a deferred pension plan and has an option of life cover. The benefits and features of this policy are its highlights.

Attractions of this policy are –

  • 4 different types of funds to be chosen from
  • Additional life cover can be added for enhancing the protection
  • Cover can be reduced according to the financial conditions of the individuals.
  • Additional riders can be opted to ensure protection against certain elements.

At present, ULIPs are experiencing a same status as other policies but the awareness levels are not as high as they actually should be. Although this product category has undergone many changes but there is a very small chunk of people who are talking about the benefits of this product in the right context. However, a quick glance at the product reviews and product reviews can help the buyer have a notion that a particular ULIP is/is not for you.