Understanding ULIP Returns in Ten Years

When planning for your family’s future, you want more than short-term gains. You want something more suited to your life’s milestones.  You want to build wealth, but at the same time, you need life insurance in case something happens to you during your earning years. A Unit-Linked Insurance Plan (ULIP) offers the best of both worlds by combining a life insurance plan with market-linked investment. This dual advantage means you get protection for your loved ones and the chance to grow wealth at the same time.

But the real question is what ULIP returns actually look like in ten years when you stay invested. In this blog, we explain how ULIP returns in the last ten years can guide your expectations. We also share simple strategies to help you maximise their potential.

Why Choose ULIPs?

When you invest in a ULIP, the story unfolds over the long term. In simple terms, over ten years, you see how much your investment has grown, factoring in fund performance, charges, and the power of compounding.

There is a mandatory ULIP lock-in period of five years, but that alone is not enough to judge the performance of a plan. Industry experts observe that staying invested for a decade or more allows market cycles to balance out and gives compounding time to build momentum.

You might want to read this: Why ULIPs are a good investment?

Factors That Affect ULIP Performance Over Ten Years

Several elements influence how your ULIP performs during a decade-long investment journey. Understanding these factors helps you set realistic expectations for ULIPs:

• Fund selection and allocation: The mix between equity, debt, and balanced funds plays a major role. Equity funds carry higher growth potential with higher risk, while debt funds provide steadier but moderate returns. Choosing the right balance depends on your goals and risk appetite.
• Market performance and cycles: Because ULIPs are market-linked, their value moves with equity and debt markets. Over ten years, cycles of growth and decline can smooth short-term volatility. But the outcomes ultimately depend on broader market trends.
• Policy charges and fees: Premium allocation, administration, and fund management charges reduce returns, especially in the early years. As your corpus grows, these costs generally become less significant relative to your investment.
• Fund switching strategy: Fund switching in ULIP offers flexibility, allowing you to rebalance between equity and debt as markets or personal needs change.
• Compounding potential merged with discipline: Staying invested through the full term and paying premiums consistently gives compounding more time to multiply and grow. Even modest returns, when reinvested year after year, can build meaningful wealth by the end of a decade.

Use this ULIP calculator to compare scenarios and plan your savings with confidence.

How Much Return Can I Get on a ULIP Policy After Ten Years, and How to Maximise

When you stay invested for a decade, ULIPs can generate meaningful growth alongside life cover. The actual outcome depends on your chosen funds, market performance, and how disciplined you are as an investor. Equity-oriented funds have the potential for higher returns with more risk, while debt funds prioritise stability. Balanced portfolios often sit in the middle.

Industry experts note that looking at ULIP returns over 10 years shows why patience matters. Equity-linked ULIPs have delivered attractive long-term growth when held through market cycles, while debt-based options have provided steady, if more modest, outcomes. These examples underline that your allocation and consistency play a major role in shaping ULIP returns.

To maximise potential returns:

• Match your fund allocation with your goals and risk appetite
• Use fund switching in ULIP strategically to rebalance based on market conditions and life circumstances
• Stay invested for the full term to benefit from compounding
• Maintain premium payments regularly to build momentum
• Monitor performance periodically and make informed adjustments when required

If you are considering long-term wealth creation and have an appetite for financial risk, now may be the right time to invest in ULIP as part of your financial plan.

Final Thoughts – ULIP in 10 Years: Worth it or Not?

A ten-year horizon is often the right benchmark for ULIPs. Looking at ULIP returns in the last ten years shows that these plans can support long-term goals when paired with discipline and the right fund choices. Staying invested for a decade often leads to more stable returns. This combination of protection and market-linked growth makes ULIPs valuable for families seeking structured financial planning.

Whether ULIPs are worth it depends on your risk appetite and objectives. For many investors, they offer a disciplined way to build wealth while staying protected. However, always consult your financial advisor before investing in any financial product.

To explore your options, check out some  ULIP plans.

Frequently Asked Questions

1. What were the average annual ULIP returns over the past 10 years in India?

Average ULIP returns in 10 years vary by fund type. Equity-oriented ULIPs have generally shown higher growth potential, while debt-focused funds offered steadier but lower outcomes.  

2. What is the maximum return of ULIP in the last 10 years?

Some equity-linked ULIPs have delivered strong double-digit growth over the past decade. However, the outcomes depend on allocation, discipline, and market cycles.

3. How to track the performance of your ULIP over time?

You can track progress through NAV updates, fund fact sheets, and your insurer’s online portal. Regular reviews of allocation and charges are key. For a shorter view of trends, see ULIP Performance Over 5 Years.

4. Is ULIP good for 10 years?

Yes. ULIPs generally perform well over the long term, provided you monitor your funds regularly and switch funds to mitigate any kind of market volatality.

5. Is ULIP tax-free after 10 years in India?

ULIP maturity proceeds can be exempt under Section 10(10D) of the Income Tax Act, 1961, provided conditions are met. Read this blog on ULIP tax benefits