Unit Linked Insurance Plans (ULIPs) like HDFC Life Sampoorn Nivesh Plus have been around for nearly two decades. They’ve survived mis-selling scandals, regulatory reforms, and the rise of mutual funds. Today, ULIPs are cleaner, more transparent, and more investor-friendly. Yet, many myths still cloud judgment. Let’s separate fact from fiction.
Myth 1: ULIPs are full of hidden charges
Reality: Post-2010 IRDA reforms capped charges. Fund Management Charge (FMC) is max 1.35% p.a., premium allocation charges taper off after a few years, and switching is free. Yes, early years see more deductions, but after year 5, over 98% of premium typically goes straight into funds.
Myth 2: ULIPs lock your money for decades
Reality: Lock-in is 5 years, not forever. After that, partial withdrawals are allowed. You can even exit fully, though compounding benefits are lost if you do.
Myth 3: Returns are poor compared to mutual funds
Reality: It depends on funds chosen. HDFC’s Opportunities Fund and Diversified Equity Fund have delivered 13–14% CAGR over 10 years, similar to good diversified mutual funds. The key is allocation and discipline, not the wrapper.
Myth 4: ULIPs are just for insurance
Reality: Sampoorn Nivesh Plus is essentially an investment-first plan with insurance cover attached. For someone paying ₹2 lakh × 5 years, the fund growth is what matters. The life cover is a bonus, not the main dish.
Myth 5: ULIPs force you to buy annuity at maturity
Reality: Wrong for wealth plans like Sampoorn Nivesh Plus. Only pension ULIPs (Click 2 Retire, Smart Pension Plus) mandate annuity. With Sampoorn Nivesh Plus, you can take out 100% corpus tax-free at maturity (subject to rules).
Myth 6: You can’t change your fund choice
Reality: You can switch unlimited times between funds — equity, debt, balanced — without tax. This is a big edge over mutual funds, where every switch may trigger capital gains.
Myth 7: ULIPs are only for aggressive investors
Reality: Not true. Conservative investors can keep 70–80% in BlueChip + Bond/Dynamic Advantage Funds. Aggressive ones can tilt towards Opportunities + Flexi. The product is flexible — your allocation decides the risk.
The Ground Reality
- A disciplined investor who puts ₹2 lakh per year for 5 years, allocates wisely (BlueChip + Diversified + Flexi), and holds till 60 can expect ₹1.1–1.5 crore corpus.
- An undisciplined investor chasing hot funds or exiting early may barely beat FDs.
- ULIPs are not good or bad — they are containers. Your fund choices and behaviour decide the outcome.
Sampoorn Nivesh Plus, when understood correctly, is a long-term, tax-efficient equity investment tool wrapped with life cover. It’s not a replacement for term insurance, and it’s not a shortcut to riches. But for investors who value discipline, tax efficiency, and flexibility, it remains one of the most underrated wealth vehicles in the market.
Clear the Confusion: Myths vs Reality
Don’t let ULIP myths misguide your investment journey. See the real facts about Sampoorn Nivesh Plus and take your next step confidently.
