Policybazaar Life Insurance Investment Plans: A Complete Guide
Life insurance is no longer just about providing financial protection to your family in your absence. With the growing demand for financial planning and wealth creation, life insurance investment plans have become an essential part of every smart investor’s portfolio. One of the most trusted platforms to explore these plans is Policybazaar, which offers a variety of options suited for different financial goals and risk appetites.
What Are Life Insurance Investment Plans?
These are hybrid financial products that combine the benefits of:
- Life insurance to protect your loved ones.
- Investment opportunities to help grow your money over time.
They’re ideal for individuals who want to secure their family’s future while also building wealth for goals like buying a home, funding education, or planning retirement.
Types of Life Insurance Investment Plans on Policybazaar
1. Unit Linked Insurance Plans (ULIPs)
ULIPs are market-linked insurance products. Here’s how they work:
- A portion of your premium is invested in market instruments like equities or debt.
- The rest is used for life cover.
- ULIPs offer fund switching options, which allow you to move between funds based on your market outlook.
Ideal For: Medium to high-risk investors looking for long-term wealth creation.
2. Endowment Plans
Endowment plans offer fixed returns with life cover. A lump sum is paid at maturity or to nominees in case of the policyholder’s demise.
Ideal For: Conservative investors seeking guaranteed returns.
3. Money-Back Plans
These plans provide periodic payouts (survival benefits) during the policy term, plus a maturity benefit at the end.
Ideal For: Those needing liquidity at regular intervals.
4. Guaranteed Return Plans
These plans provide assured maturity amounts, unaffected by market fluctuations.
Ideal For: Investors with low risk appetite who want predictable returns.
Top Investment Plans Available on Policybazaar (2024-2025)
| Plan Name | 10-Year Returns | Fund Type | Estimated Maturity Payout |
|---|---|---|---|
| Tata AIA Life Fortune Pro | 20.4% | Equity Fund | ₹2.07 Cr (Lump Sum) |
| Max Life Online Savings Plan | 16.74% | High Growth Fund | ₹1.15 Cr (Lump Sum) |
| Bajaj Allianz Smart Wealth Goal | 17.8% | Hybrid Fund | ₹1.5 Cr (Lump Sum) |
Returns are based on past performance and may vary depending on market conditions.
Key Features of These Plans
- Dual Benefits: Life cover + investment returns.
- Tax Efficiency: Section 80C and 10(10D) benefits.
- Flexibility: Choose premium term, policy term, and fund type.
- Online Comparisons: Easily compare multiple plans via Policybazaar.
- Add-ons Available: Riders like critical illness, accidental death, etc.
Tax Benefits of Life Insurance Investment Plans
- Section 80C: Premiums up to ₹1.5 lakh per annum are eligible for deductions.
- Section 10(10D): Maturity proceeds are tax-free if annual premiums are less than 10% of the sum assured and other conditions are met.
Things to Consider Before Buying
- Your Financial Goal: Is it wealth creation, saving for a milestone, or just life protection?
- Investment Horizon: Most plans perform best when held for 10+ years.
- Risk Appetite: Choose equity funds for higher returns, debt for stability.
- Charges: ULIPs may have fund management, mortality, and policy admin charges.
- Insurer Reputation: Check claim settlement ratio and customer reviews.
Who Should Consider These Plans?
- Young professionals aiming for long-term wealth creation.
- Parents planning for child’s education or marriage.
- Retirees looking for safe and guaranteed returns.
- Anyone who wants a combo of protection and investment in one plan.
Policybazaar’s Advantages
- Easy-to-use interface for comparing plans.
- Transparent display of features, returns, and costs.
- Assistance from licensed insurance advisors.
- Access to plans from major insurers like Tata AIA, Max Life, Bajaj Allianz, HDFC Life, ICICI Prudential, and more.
FAQs
1. Are investment plans risky?
Only market-linked plans (like ULIPs) involve risk. You can choose guaranteed return plans for capital protection.
2. Can I withdraw money before maturity?
Yes, ULIPs and some endowment plans offer partial withdrawal options after a lock-in period (typically 5 years).
3. What happens if I stop paying premiums?
If you discontinue early, surrender charges may apply, and insurance cover may lapse. However, some plans offer paid-up or revival options.
4. Can I change my fund allocation in ULIPs?
Yes, ULIPs allow free or limited fund switches each year, depending on the policy.
Final Thoughts
Policybazaar has made life insurance investment planning more accessible and transparent for Indians. Whether you’re an aggressive investor or a conservative saver, there’s a plan suited for your profile. By understanding the structure and benefits of these products, you can make an informed decision that not only secures your family’s future but also builds wealth for your own.