Best Life Insurance Plans with High Returns (2024–2025)
Life insurance isn’t just about financial protection—it can also be an investment vehicle. Some plans offer maturity benefits, bonuses, and market-linked returns. Below are the top types and providers of life insurance with high returns, along with a breakdown of features and benefits.
1. Types of Life Insurance with High Returns
a. Endowment Plans
These offer both life cover and maturity benefits. A portion of the premium goes toward life cover, while the rest is invested by the insurer. Returns are moderate and predictable, often with bonuses.
b. Unit Linked Insurance Plans (ULIPs)
ULIPs combine insurance and investment. A part of your premium is invested in equity, debt, or hybrid funds based on your risk appetite. Returns are market-linked, and long-term investments often yield better results than traditional plans.
c. Whole Life Plans with Bonus
These policies provide coverage up to 99 or 100 years with bonuses declared annually. The returns build up gradually, and death benefits are substantial.
2. Top Life Insurance Plans Offering Good Returns
a. LIC New Endowment Plan (Table No. 914)
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Type: Endowment
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Returns: ~4%–6% with bonuses
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Term: 12 to 35 years
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Benefit: Sum assured + guaranteed additions + bonus
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Best for: Safe, long-term savers
b. HDFC Life Click 2 Wealth (ULIP)
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Type: ULIP
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Returns: 8%–12% (market-linked)
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Term: 5–40 years
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Benefit: Zero allocation charge, multiple fund options
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Best for: Market-savvy investors
c. ICICI Pru Signature (ULIP)
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Returns: 7%–12% (long term)
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Flexibility to switch between funds
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Loyalty additions and wealth boosters
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Tax benefits under Sec 80C and 10(10D)
d. Max Life Smart Wealth Plan
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Type: Guaranteed return plan
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Offers fixed returns and life cover
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Benefit: Survival and maturity benefits + life cover
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Risk-free with predictable income stream
e. SBI Life Smart Wealth Assure (ULIP)
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Single premium ULIP
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Market-linked returns with 9 fund options
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Loyalty additions after 10 years
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Suitable for high-net-worth individuals
3. Things to Consider for Best Returns
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Investment Horizon: Longer tenure plans (10+ years) give better returns.
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Premium Paying Term: Regular premiums lead to more benefits in some plans.
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Fund Selection (for ULIPs): Choose aggressive funds for higher returns if you can tolerate risk.
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Bonuses and Additions: Some traditional plans offer annual reversionary bonuses or loyalty additions.
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Tax Benefits: Under Sections 80C and 10(10D), premiums and maturity proceeds are tax-exempt under certain conditions.
4. Final Advice
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For guaranteed returns, go for endowment or whole life plans from LIC or Max Life.
For higher market-linked returns, ULIPs from ICICI, HDFC Life, or SBI Life are top choices.
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Review annualized returns, charges, and flexibility.
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Always compare the Internal Rate of Return (IRR), not just the sum assured.
