How To Enhance ULIP Benefits?

Unit Linked Insurance Plans in India | ULIPs Plans | Benefits of ULIPs

There is no doubt that ULIP plan benefits are comparatively better than any other investment alternatives. ULIP insurance provides people with a diversified investment portfolio and can invest at their pace and risk tolerance level. However, we generally get stopped there. 

Do you know you can increase the ULIP benefits by employing specific tips and points while buying the ULIP plan? Yes, you can increase the benefits of the ULIP policy with specific strategies. Here in this article, we have listed all the ways to increase the benefits of your ULIP insurance

Ways to Enhance ULIP Benefits

Here are some ways to enhance the ULIP benefits:

  • Plan your investment strategies early and start investing early in your life.

In the investment world, it is said that the ideal moment to start investing was yesterday, and the second most significant time is today. The earlier you begin investing, the more likely your money will increase. Investing in a ULIP plan early gives your money more time and a chance to develop. Investing early will also result in compounded benefits.

  • Increase your investment amount periodically.

Investing as much as possible is the easiest way to optimise your ULIP plan benefits. This means saving as much as possible and investing as much as possible. It increases your return on investment.  The more the quantity invested, the greater the reward. This is when recurring savings come in handy. 

If you manage your costs efficiently, you will be able to invest more and have a greater chance of earning a higher return. It enhances the overall savings. Investing tiny sums regularly can eventually grow your total and help you save.

  • Choose and opt for a systematic transfer option while buying the ULIP plan.

If paying premiums every month sounds bothersome to you, this is the perfect solution for you. The systematic transfer option creates a SIP to your selected equities fund automatically.

  • Choose equity to invest in with the ULIP plan.

You can continuously diversify the investments with your ULIP policies as per your risk tolerance level. You should invest in equities as long as you can handle the potential losses. You must note that equity funds are often hazardous investments because they are more unpredictable than other securities, and their success is directly tied to the market. 

However, if you can remain long enough, they can give more enormous profits. You may reduce your risk in stock investments by investing for the long term, investing in little sums regularly, and finally diversifying. There are various ULIP plans that are offered by insurance service providers, such as Tata AIA Life Insurance and many others. The ULIP plans offer flexibility in diversifying the investment. 

  • Choose auto rebalancing funds while buying the ULIP insurance:

The risk of your investment portfolio is maintained by auto-rebalancing funds without lowering it. This rebalancing method must be used in conjunction with the rebalancing above method to avoid market risk. You can change funds in almost all ULIPs on the market.


After going through the strategies mentioned above, it is clear that no rocket science is required to increase the ULIP plan benefits. You just need to choose the options while buying the ULIP plans carefully. Keep your risk tolerance level in mind and invest carefully.