Understanding ULIP Performance Over 15 Years

A ULIP (Unit Linked Insurance Plan) is more than just an insurance policy—it’s a long-term wealth-building tool that offers life insurance too. ULIPs allow policyholders to grow their money while ensuring financial protection for their loved ones.

If you're thinking long term, you may wonder: What kind of returns can ULIPs generate over 15 years? How much will my money grow? With the right fund selection and disciplined investing, ULIPs can offer significant growth. Let’s break it down.

Understanding ULIP Returns Over Time

What are ULIPs and How Do They Work?

ULIPs combine life cover with market-linked investments. When you pay a premium, a portion goes toward life insurance, and the rest is invested in your chosen funds—equity, debt, or hybrid.

Over time, the value of your ULIP depends on how well these funds perform in the market. This dual structure gives you both protection and potential for higher returns, especially when held over the long term.

Key Factors Influencing ULIP Performance Over 15 Years

• Market Performance: ULIPs are market-driven. When the stock or debt market performs well, equity or debt ULIP funds may deliver impressive returns.

• Fund Allocation: Your risk appetite plays a key role. Equity funds carry more risk but may offer higher returns. Debt funds are more stable but conservative.

• Premium Payments: Regular payments ensure consistent investment growth and uninterrupted insurance coverage.

• Fund Switching: ULIPs allow fund switching, letting you move your money between funds based on market trends or your changing life stage.

• Charges: ULIPs come with charges like fund management fees and policy administration costs. Choosing low-cost plans can enhance long-term gains.

ULIP Returns in the long term

Historically, Bandhan Life’s ULIP funds have demonstrated strong long-term performance, with many either matching or outperforming their respective benchmarks—highlighting effective fund management.

For example, the Enhanced Equity Fund (SFIN: ULIF01511/02/14BLUECHIPEQ0138 ​), launched in July 2008, has delivered a growth rate of 12.5% since inception, compared to 10.88% by its benchmark, the Nifty 50 (as of June 2025). Similarly, the Accelerator Fund (SFIN: ULIF01203/09/10ACCELERATE0138​), completing 15 years in September 2025, has grown by 11.57%, outperforming the BSE 100 benchmark at 10.63%.

Among debt options, Bandhan Life’s Debt Fund (SFIN : ULIF00405/07/08DB0138), also launched in July 2008, has grown at 8.34%, compared to 7.89% by the CRISIL Bond Fund Index.

While equity-oriented funds offer higher growth potential over the long term, debt funds (SFIN : ULIF00405/07/08DB0138), provide more stable and conservative returns — making them suitable for risk-averse investors. Your choice should depend on your financial goals, risk appetite, and investment horizon.

To learn more about the performance of Bandhan Life funds, check out our monthly investment report.

Also check out Bandhan Life iInvest Advantage, a ULIP that offers you some of our best-performing funds for building wealth, along with a robust life cover.

How to Maximize ULIP Performance Over 15 Years

• Choosing the Right Fund Option: Your risk appetite should guide fund selection. If you can afford to take a bit of a financial risk, choose equity-heavy funds. If you want to take the middle-path, opt for hybrid or balanced funds. And if you are conservative, stick to debt-oriented ULIPs. ULIPs let you switch funds during the policy term— monitor your funds regularly and use this flexibility wisely.
• The Importance of Regular Premium Payments: Skipping or delaying premiums can reduce your returns or lapse the policy. A consistent payment habit ensures compounding works in your favor.
• Rebalancing Your Portfolio: Revisit your fund allocation periodically. Younger investors can stay equity-heavy. But if you are nearing retirement, you can gradually shift toward debt for stability.

What Are the Risks and Challenges of ULIPs Over 15 Years?

• Market Volatility: Markets can go through ups and downs. Staying invested during lows can help you ride out volatility and reap long-term gains.
• ULIP Charges: ULIPs include, fund management fees, premium allocation charges and admin charges. Opting for low-cost ULIPs can reduce this burden and increase your actual return. Choose a life insurance company that is transparent about these charges.
• Missed Premium Payments: Skipping premiums not only pauses investments but may also impact your life cover. Always aim to pay on time or set up auto-debit to avoid lapse.

How to Evaluate ULIP Performance Over 15 Years

To evaluate:

• Check historical returns of your chosen fund
• Use ULIP return calculators to project maturity value
• Calculate CAGR (Compounded Annual Growth Rate) to get a true picture

Final Thoughts

ULIPs can be powerful long-term wealth creators—if you stay invested for 15 years or more, choose your funds smartly, and make consistent contributions. They offer you insurance coverage, market-linked growth, and tax benefits^%—all in one.

Before investing, ask yourself:

• Can I stay invested for 10–15 years?
• Am I clear about my risk appetite?
• Am I disciplined with premium payments?

If yes, a ULIP might be just the long-term solution you’re looking for.

Frequently Asked Questions

1. Can ULIP performance be predicted for the next 15 years?

While exact predictions aren’t possible, historical data and fund performance can offer reasonable expectations—especially if you diversify and stay invested long term.

2. What happens if I stop paying premiums on my ULIP?

The policy may lapse, reducing or ending your life cover and affecting returns. Some plans convert into a reduced paid-up status, but benefits will be limited.