How New ULIPs (N-ULIPS) are different from regular ULIPs

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The perception that a majority of people had about Unit-Linked Insurance Plans (ULIP) that it is a non-preferable investment option is no longer the same. The bad reputation of ULIPs was simply because of the miss-selling by the insurance companies and their agents. However, with the advent of the Insurance Regulatory and Development Authority (IRDA) of India, ULIPs have changed ever since their reforms.

New-Age ULIPs are a perfect combination for those looking for debt and equity investment under one investment-cum-insurance plan. Other various features like flexibility, tax benefits, and higher returns provide ULIPs with an upper hand in the market. In order to learn the difference between regular ULIPs and New ULIPs (NULIPs), stay glued to this guide till the end:


What are the regular ULIPs?

It was actually the regular ULIPs that made a majority of people cringe before investing in a ULIP Plan. The higher charges made people think twice before investing in a comprehensive insurance-cum-investment solution.

Rather than serving as a purpose in the times of their financial needs, regular ULIPs drove people away. Another untold fact about its unpopularity was the miss-selling of the policy by not only the insurance firms but also their agents. So if you’re very keen on not spending too much time only paying the higher premium amount, then opt for new ULIPs.

What are New ULIPs?

The current volatilities in the market, as well as consistency in ULIP performance, has made ULIPs a go-to for every financial and personal exigency. For every equity man, new ULIPs have become a game changer.

For starters, new-age ULIPs offer exemption from the payment of Long Time Capital Gains Tax (LTGT). To make things even simpler for you, it offers a dual benefit of providing insurance and investment under a single roof. When you invest in a ULIP Plan, you have assured a long term promise of 5 years in order to fulfill your aspirations and goals.

How are the two different?

1. Returns

New-Age ULIPs have lesser charges than their previous counterparts. Most of these new-age ULIPs are sold online. You can research various products, compare them side by side, know about the various applicable charges and purchase the best ULIP plan for yourself without leaving your house. Due to the absence of distribution charges and an agent’s commission, more of your money gets invested in top performing ULIP funds, which in turn leads to higher returns.


Being a long term product, it offers insurance and investment, at the same time. Therefore. ULIP Policy comes with a premium payment. However, this premium includes mortality which covers the life insurance. In order to get the free insurance, you will receive the mortality charges in return after your ULIP plan matures.

3. Tax

The main reason why a majority of investors are lured by ULIPs is because of its exemption from the payment of taxes. These ULIP tax benefits are accessible at the time of investment as well as maturity. The investment which is made by an investor in a ULIP Policy is deducted from the taxable income under section 80C.

4. Funds

An investor should definitely take up an online ULIP Policy that offers that provides a selection of different funds like equity, debt, and balanced funds. You are asked to make a choice based on your risk appetite and fund allocation. Besides, you can also make switches from one fund to other multiple times in a year as per your wish.

Now that you know what makes new-age ULIPs the best investment option in the current market scenario, when are you investing in one? Due to low risks and high returns, new ULIPs are a perfect solution for every investor.


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