Maximising Savings with ULIP Tax Benefits and Exemptions

While we’re busy fulfilling our present-day needs, long-term goals and future financial security often take a backseat. But what if one smart investment could help you grow wealth, protect your loved ones, and also reduce your tax outgo?

That’s where ULIP plans (Unit Linked Insurance Plans) shine — combining insurance, investment, and tax-saving benefits in one powerful solution.

Let’s explore how you can make the most of ULIP plan tax benefits and why the Aviva Signature Investment Plan – Platinum could be a great fit for your future.

What is a ULIP Plan?

A ULIP is a dual-purpose financial tool offering both life insurance and market-linked returns by investing your premium in a mix of equity and debt funds. It also offers attractive tax benefits under Sections 80C and 10(10D) of the Income Tax Act.

Aviva Signature Investment Plan – Platinum: A ULIP Designed to Protect and Prosper

The Aviva Signature Investment Plan – Platinum is a thoughtfully designed Unit Linked Insurance Plan (ULIP) that provides comprehensive life cover while allowing your investments to grow over time.

Whether you’re planning for your child’s education, retirement, or a wealth corpus for future goals, this plan offers the ideal blend of security and growth.

Why Choose It?

●    Dual Benefit: In the event of an unfortunate occurrence, your family receives both the Sum Assured and the Fund Value, ensuring complete protection.
●    Fund Switch Flexibility: Switch between 8 different fund options at no extra cost, or change how future premiums are invested based on your financial outlook.
●    RetireSafe Feature: Over the last three years before maturity, your investments are automatically transferred to more stable options to protect them from market volatility — ideal for retirement planning.

●    Top-Up Premiums: Got a bonus or extra funds? You can make top-up contributions to grow your wealth faster, and they may also qualify for tax deductions.
●    Systematic Partial Withdrawals: After the 5-year lock-in, you can plan a steady stream of income through scheduled withdrawals — great for retirement or life milestones.
●    Systematic Transfer Plan (STP): Want to move from equity to debt gradually? Use STP to minimise market risk before your plan matures.
●    30-Day Free Look Period: Not Sure After Buying? You’ve 30 days to cancel and receive a full refund (minus any applicable deductions).

Key Benefits

●    Maturity Benefit: Get the full fund value (including any top-ups) at the end of your policy term.
●    Death Benefit: Your nominee receives the sum assured plus the fund value (minimum of 105% of the total premiums).
●    Partial Withdrawal: After 5 years, meet short-term needs or emergencies without breaking your policy.
●    Surrender Option: Need to exit? You can surrender after the 5-year lock-in and get the value.
●    Policy Revival: Missed a payment? You have 3 years to revive your policy and retain your benefits.
●    ULIP Plan Tax Benefits: Deductions under Section 80C and tax-free payouts under Section 10(10D).

How ULIP Plan Tax Benefits Work in Practice?

Consider an individual who chooses to invest in the Aviva Signature Investment Plan – Platinum with an annual premium of ₹1.2 Lakh for a policy term of 20 years. The sum assured selected is ₹12 Lakh, meeting the eligibility requirement of being at least 10 times the annual premium.

1. Tax Deductions on Premiums Paid

Under Section 80C of the Income Tax Act, the individual can claim a deduction of up to ₹1.5 Lakh annually. With an annual premium of ₹1.2 Lakh and assuming a 30% income tax bracket, this results in a yearly tax saving of ₹36,000. Over 20 years, this amounts to ₹7.2 Lakh in tax savings, in addition to the investment returns.

2. Tax-Free Maturity Benefits

As per the Finance Act 2023, maturity proceeds under Section 10(10D) remain exempt from tax only if the total annual premium across all ULIP policies does not exceed ₹2.5 Lakh. In this case, since the premium is ₹1.2 Lakh, the maturity benefit qualifies for full tax exemption.

3. Tax-Free Death Benefit

The death benefit remains fully tax-exempt under Section 10(10D), regardless of the premium amount. This ensures that the nominee receives the complete benefit, including sum assured and fund value, without any tax liability.

Other Signature Plans Worth Exploring

Aviva Signature Increasing Income Plan

Ideal if you're looking for a growing monthly income to supplement retirement or future plans. Key highlights:

●    Income increases by 15% every 3 years
●    Maturity and death benefits
●    Premium waiver on death

●    Tax benefits under 80C and 10(10D)

Aviva Signature 3D Term Plan – Platinum

Perfect if you want pure protection with critical illness coverage. Features:

●    Life cover up to age 80
●    Riders for accident, cancer, and critical illness
●    Option to cover liabilities like loans
●    Preventive health and wellness services
●    Tax-saving benefits on premiums

Final Thoughts: Let Your ULIP Work Hard for You

With the right ULIP plan, you’re not just buying insurance — you’re unlocking a complete wealth-building strategy that rewards you with growth, security, and significant tax savings.

The Aviva Signature Investment Plan – Platinum gives you control, protection, and peace of mind. Pair it with Aviva’s Signature Increasing Income or 3D Term Plan for a well-rounded financial safety net.

Start now, save more, and live life on your terms.

*Standard T&C Apply

**Tax benefits are subject to change in prevalent tax laws.

***Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

****Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.