Future Generali India Life Insurance Company Limited is now Generali Central Life Insurance Company Limited. Generali Central Life Insurance Company Limited – A joint venture between Generali – one of the world’s leading insurers and Central Bank of India, India’s finest nationalised bank.
Future Generali India Life Insurance Company Limited is now Generali Central Life Insurance Company Limited. Generali Central Life Insurance Company Limited – A joint venture between Generali – one of the world’s leading insurers and Central Bank of India, India’s finest nationalised bank.
Tax on ULIP Policies Including Taxability and Capital Gains
2 mins
2.3KA Unit Linked Insurance Plan is a plan that provides both insurance and investment. The goal is to provide life cover while the rest is invested by your insurance company into debt or equity or combination fund.
What are the different types of ULIPs?
What is the sum assured for ULIP plans? One of the advantages of ULIP plans is that you can choose your sum assured at the beginning of the policy, and even increase it later in some cases. This can allow you to tailor the policy to your life-stage. For instance, as an unmarried individual, your requirement may be different from the time when you are married and have two children.
What is the maturity benefit of a ULIP? If the policyholder survives the entire term of the policy, they earn a maturity payout equal to the fund value.
What kind of death benefit is provided by ULIP plans?
- Type 1 ULIP: The premium amount is relatively lower. On the death of the insured, the beneficiary receives either the fund value or the sum assured - whichever is higher.
- Type 2 ULIP: The premium amount is higher. Upon the death of the insured, the beneficiary receives fund value+Sum Assured.
What instruments do ULIPs make investments in? ULIPs invest in debt, equity, or balanced funds as per invertor’s risk appetite and your long-term goals.
Can you switch your investments? This is one of the most significant advantages of ULIP plans. You can switch your funds during the policy term. Usually, 4 switches are allowed in a year free of cost. Many investors choose to switch between funds depending on their age/life-stage. For instance, investors approaching retirement may choose a higher allocation towards lower-risk debt funds, while younger individuals in their late 20s may choose a higher allocation towards equity-focused funds.
How do you check the performance of your funds? Your fund is divided into units and the per-unit value of a fund is called NAV. The company publishes daily NAV updates which tell about the performance of your fund.
How do you check the performance of your funds?
- ULIP premiums are tax-deductible under Section 80C .
- The maturity payout is also exempted under Section 10(10D).
- ⦠They are exempted from Long Term Capital Gains tax, being one of the few market-linked instruments to remain outside the ambit of LTCG tax.
- ⦠They make excellent investments for financial goals like education, marriage, etc. as money gets compounded and is not taxed.
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Get Expert Advice from Your Trusted Life Insurance Partner!
Have questions? Get help and reliable support from experts at Generali Central India Life Insurance.
Explore Knowledge Centre
From insurance basics to wealth-building strategies — everything you need, in one place.
Got Questions? We’ve Got Answers!
Here are answers to some of the questions you might have.
Life insurance is a financial safety net that supports your loved ones in your absence. If something happens to you, it provides them with funds to help cover everyday expenses, repay debts, and achieve future goals. It gives you peace of mind, knowing your family’s financial future is secure— no matter what.
The right plan depends on your needs.
Start by assessing your life stage, financial goals, and the needs of your family. Consider factors like your income, outstanding loans, future expenses and goals (like children’s education, foreign travel, study abroad), and desired coverage amount. We offer a wide range of plans that cover multiple goals and budgets. To get a better idea and make a confident choice consult with a financial advisor or call us on 1800 102 2355.
A good rule of thumb is to aim for coverage that's 10–15 times your annual income. Consider your family’s living expenses, outstanding loans, children’s education, and long-term goals. The right amount ensures your loved ones can maintain their lifestyle and meet future needs— even in your absence.
We would love to help you choose and buy the right policy for your needs. Call our toll-free number 1800 102 2355 or drop us an email at care@generalicentral.com.
Reach out to us in any way that you prefer, and our team of experts will soon get back to you!
Disclaimers
Understand your policy better with key details and insights into our Generali Central Life Insurance.
This Product is not available for online sale. Life Coverage is included in this Product. For detailed information on this plan including risk factors, exclusions, terms and conditions etc., please refer to the product brochure and consult your advisor, or, visit our website before concluding a sale. Tax benefits are as per the Income Tax Act 1961 and are subject to any amendment made thereto from time to time. If you have any request, grievance, complaint or feedback, you may reach out to us at care@generalicentral.com For further details please access the link: www.generalicentrallife.com/customer-service/grievance-redressal-procedure.
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