Written by : Knowledge Centre Team
2026-06-23
1894 Views
8 minutes read
Share
When you think of investments and savings, you start exploring various plans that offer you various benefits for saving your money. Some of the best savings and investment options include life insurance plans. However, as you go deeper with your financial research, you might get confused between ULIPs (Unit Linked Insurance Plans) and the SIP (Systematic Investment Plans).
Also Read - What is SIP?
If you are someone who has not heard of these terms yet, then don't worry. We will discuss the difference between the two, covering the very basics to make it easier for you. With this knowledge, a new investor and someone who has done basic research about financial investments can find themselves at ease.
Now, first things first, let's take a look at what exactly ULIP and SIP mean.
Key Takeaways
|
What are Unit Linked Insurance Plans (ULIPs)?
Unit Linked Insurance Plans, or ULIPs, are financial investment tools that provide the benefits of both insurance and investment when you invest in them. While providing you with a cover with the insurance plan, it allows you to invest in bonds and stocks.
This way, returns from ULIPs are market-linked with the security of an insurance cover. Apart from wealth creation, you can develop an investment discipline with ULIPs. ULIPs are a good option for long-term financial goals.
Also Read - What is ULIP?
Get a Personalised ULIP Plan for Wealth Creation & Protection
Enter OTP
An OTP has been sent to your mobile number
Didn’t receive OTP?
Application Status
Name
Date of Birth
Plan Name
Status
Unclaimed Amount of the Policyholder as on
Name of the policy holder
Policy No.
Address of the Policyholder as per records
Unclaimed Amount
Sorry ! No records Found
Request Registered
Thank You for submitting the response, will get back with you.
Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.
What is a Systematic Investment Plan (SIP)?
A Systematic Investment Plan or SIP is a systematic way to channelise your investment. Through SIP, you invest on a monthly, quarterly, or yearly basis in mutual funds. It is a long-term investment tool with a planned approach. You can have wealth creation over a certain period.
With SIP, you should have a long-term financial or life goal for which you can plan the savings. The benefit of SIP is that you can start your investment with as low as ₹ 500. So, even if you are a student or someone who has just started earning, SIP is an option.
ULIP vs SIP: How do the Two Investment Tools Differ?
Having discussed the basics of both ULIP and SIP, it is time to take a look at their differences.
Parameter | ULIP | SIP |
Policy Type | Benefits of both life insurance and investment | Only investment benefits |
Lock-in Period | 5 Years | 3 Years (for Equity Linked Savings Scheme (ELSS) mutual fund) |
Tax Benefits | Tax-related benefits can be availed on the premium paid towards the policy and maturity proceeds under Section 80C and 10(10D) of the Income Tax Act | Tax benefits are not applicable in SIP, however, exemptions are applicable only on the Equity Linked Savings Scheme (ELSS) up to the maximum limit of ₹.1.5 lakh |
Withdrawal Options | Partial withdrawals after the lock-in period are over | Invested capital can be withdrawn; however, for ELSS, withdrawals can be made after a lock-in period of 3 years |
Flexibility | Flexibility in terms of deciding what portion would go for life insurance cover and what would go for investment | Flexibility in terms of increasing or decreasing the invested capital for long-term gain |
Additional Benefits | Loyalty benefits, along with the issuance of additional fund units after the completion of the lock-in period | There are no such additional benefits |
Death Benefits | Benefits are paid to the beneficiary in case of the unfortunate demise of the insured person | No death benefits are available |
Fund Management Charges | 1.35% | 2.50% |
Switching Option | Free switching options between funds (up to a limited number) in a year | Freedom to make switches between the funds |
Regulator | IRDAI | SEBI |
Factors to Consider Before Deciding Between ULIP and SIP
Choosing between ULIP and SIP might be confusing..If you have a long-term financial goal where you need a planned approach, then SIP comes with a logical option. However, if you are also looking for an insurance cover alongside your investment, then ULIPs are the best option. Before making a call between the two, you must check the parameters based on which we made the comparison above.
The importance of each feature varies from person to person. Some investors may prioritise switching options or lock-in period, whereas others may focus more on death benefits or additional advantages.
Which One to Invest In?
After looking at the comparison between SIP and ULIP, the next logical step is to determine which one to invest in. Simply, the choice depends on your financial goals and plans. However, taking a look technically and in terms of financial management, ULIPs are a nice option.. You get a life insurance cover as a first thing. Further, there is an option to earn market-linked returns. With SIP, you don't get dual benefits.
Thus, with ULIPs, you don't have to buy two financial products separately for insurance and investment. However, if you are not thinking of insurance much and flexible with buying two separate financial products, then SIP is also a good option. Another benefit of SIP is that it's a new investor's go-to tool, as you can start with a bare minimum amount as well.
Which ULIP to Invest In?
There are several ULIPs offered by Canara HSBC Life Insurance. You can consider the following:
You can consider the Promise4Growth Plan by Canara HSBC Life Insurance. It is a smart ULIP that blends life cover with the flexibility of market-linked investments. It offers three plan variants: Promise4Wealth, Promise4Care, and Promise4Life, to match your financial goals and life stage. You can choose your premium term, policy duration, and fund allocation from a pool of nine funds, including a mid-cap growth index fund. The plan ensures flexibility in investment and coverage, with features like return of mortality charges and low fees.
- The Alpha Wealth Plan by Canara HSBC Life Insurance is a Unit Linked Insurance Plan (ULIP) that blends long-term wealth generation with life protection. It offers three flexible variants: Alpha Invest Plus, Alpha Premium Plus, and Alpha Life Plus, to suit your financial stage and goals. Across all variants, you benefit from features like loyalty additions, wealth boosters, and a refund of mortality charges at maturity.
Final Thoughts
Both ULIP and SIP serve unique financial purposes. If you're looking for a dual benefit of life insurance and market-linked returns, ULIPs like Promise4Growth, or Alpha Wealth by Canara HSBC Life Insurance, offer flexibility, long-term value, and protection. On the other hand, if you're focused purely on investment with a small start, SIPs are beginner-friendly. Your decision should align with your financial goals, risk appetite, and need for insurance cover alongside investment growth.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
Recent Blogs
Best ULIP Plans: How to Choose the Right Plan for You?
25 June '26
1080 Views
7 minute read
Choosing the right ULIP plan can make a significant difference to your returns. A clear breakdown of top tips to pick the best ULIP plan for your goals.
Read More
Ulip
Can You Withdraw ULIP Before Maturity? Rules & Options
25 June '26
2890 Views
8 minute read
Learn whether you can withdraw money from a ULIP before maturity, when partial withdrawals are allowed, and what rules you should know before taking money out.
Read More
Ulip
What Are Market-Linked Returns in ULIPs? Meaning & Growth
25 June '26
1271 Views
5 minute read
What are market-linked returns in ULIP? Learn how investment performance impacts returns and how you can benefit from long-term growth.
Read More
Ulip
How to Make ₹3 Crore in 10 Years? ULIP Investment Plan
25 June '26
2903 Views
7 minute read
Discover how a ULIP investment over 10 years can build a ₹3 crore corpus, understand required monthly investments, compounding power & smart fund switching.
Read More
Ulip
ULIP Surrender: Why You Shouldn’t Exit Early & Key Risks
25 June '26
1895 Views
6 minute read
Surrendering a ULIP policy early can lead to losses and missed growth. Learn why staying invested is a smarter decision, with benefits like compounding and long-term wealth creation.
Read More
Ulip
ULIP Returns: Market Impact & How to Maximize Growth?
25 June '26
1154 Views
7 minute read
Learn how market cycles affect ULIP returns and discover strategies to maximize growth and improve long-term investment performance.
Read More
Ulip
Promise4Growth Plus: 3 Options for Wealth & Growth Explained
25 June '26
1433 Views
7 minute read
Learn the 3 options of Promise4Growth Plus ULIP plan with benefits, scenarios, and returns to choose the right option for your goals.
Read More
Ulip
ULIP Fund Switch: Strategy to Protect Returns in Market Crash
25 June '26
1146 Views
8 minute read
Protect your investment during downturns. Learn when and how to switch ULIP funds with a three-step playbook designed to minimise risk and safeguard growth.
Read More
Ulip
ULIP vs SIP: Top-Up vs New SIP & Which Is Better
25 June '26
1946 Views
7 minute read
ULIP top-up or new SIP? Compare flexibility, returns, risks, and costs to make an informed decision for wealth growth and financial planning.
Read More
Ulip
Unit Linked Insurance Plans - Top Selling Plans
Canara HSBC Life Insurance offers online ULIP plans that blend life insurance protection with investment growth, helping you build wealth while securing your family's future.
Wealth Today, Protection Always
Promise4Growth Plus
- Life Cover up to 100 Years
- 13 Fund Options
- Fund Switching Option
- Waiver Of Premium
Secure Your Future with Confidence
SecureInvest
- Life Cover up to 100× Annual Premium
- 12 Fund Choices
- Automated Portfolio Strategies
- Maturity Booster
Invest Smart, Live Smart
Wealth Edge:
- Flexible Premium Options
- Multiple Fund Allocations
- Systematic Withdrawals
- Premium Waiver Benefit
Popular Search
- What is ULIP?
- ULIP Tax Benefit
- ULIP Full Form
- ULIP Vs Term Insurance
- Best ULIP Plans
- Best ULIP Plan For Child
- Allocation Charges In ULIP
- ULIP Returns In 15 Years
- Difference Between ULIP and Mutual Fund
- ULIP Vs SIP
- Mortality Charges In ULIP
- What is NAV?
- How ULIP Works?
- Tips to Buy ULIPs
- ULIP Calculator
- Power of Compounding Calculator
- ULIP Tax Benefits in India