What Impacts The Value of Your ULIPs?

What Impacts The Value of Your ULIPs?

Factors that impact your ULIP value, how they influence returns & steps to maximise investment growth.

Written by : Knowledge Centre Team

2026-03-02

878 Views

7 minutes read

Exit Pop Up

Introducing BSE 500 Enhanced Value 50 Fund with Promise4Wealth

50 High-Potential Companies, One Smart Decision

Name is required Name should be Valid
Mobile Number is required Mobile Number should be Valid
DOB is required DOB should be Valid
Annual Income is required
Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

ULIPs are popular instruments because of their unique composition. They offer a dual benefit of insurance and investment in a single plan. If you want to venture into investing and yet stay as safe as possible, you can buy life insurance along with a relatively safe investment in the form of a ULIP.

What is a ULIP?

When you have a ULIP, you don’t need to buy life insurance and investment funds separately. A part of a ULIP premium goes towards a life cover, while the other is invested in funds which are chosen according to your risk appetite. Your fund can be a debt fund if you want to be rather safe, an equity fund if you are willing to take calculated risks, or even a balanced fund if you want to hit the sweet spot in the middle.

What is the fund value of a ULIP?

Fund value, often confused with the sum assured, is actually the monetary value of the units you hold. It can be calculated by multiplying the NAV (Net Asset Value) of every unit on the specific day by the total number of units held by you. The NAV keeps changing, and thus, fund value also keeps changing due to fluctuations in the market.

The NAV is basically the price per unit of your fund.
NAV = (Value of Current Assets + Market Value of Investments Held) - (Value of Current Liabilities and Provisions) /
Total no. of outstanding units on the particular date
Just like shares have a share price, mutual funds and ULIPs have an NAV.

What impacts the fund value?

All the values which go into the calculation of the NAV impact your fund value.

  • The current market value of your investments
  • The market value of your current assets
  • The market value of your current liabilities and provisions
  • Number of units existing on valuation date (the date of calculation)

How is fund value different from Sum Assured?

The sum assured for a ULIP is the same as that when you buy life insurance. It is the amount that the insurer will pay to your beneficiary in the event of your death. Depending upon the policy terms, your family could receive either the sum assured, or the fund value, or the higher of the two upon death. Upon survival, you will receive the fund value upon maturity, and not the sum assured.

What is surrender value?

Surrender value, as the term suggests, is the value that you get upon surrendering your ULIP before maturity due to a certain reason. This value depends upon a lot of factors.

What impacts the surrender value?

  • The mortality charge or the cost of providing insurance which is deducted from your premiums will be deducted from the number of premiums paid for calculating the surrender value. Mortality charges are usually minimal and are paid back at the end of the policy.
  • While buying a ULIP, one of the charges that you need to be clear about is the management charge. It is one of the most important deductions from your premiums. It is usually in the range of 0.5%-2% of your premium. It is basically a charge that you pay for your fund manager who ensures that your fund gets you good returns.
  • The longer the duration for which you pay your premiums, the greater the increase in valuation of your policy. The base amount of your policy upon maturity is the sum of all the premiums paid, after deduction of mortality and management charges. However, there is another factor that is taken into account, which is the insurance to investment ratio.

Conclusion

A ULIP is an elaborate, detailed instrument. Make sure you know exactly what kind of returns you are in for when you buy one. For maximum choice and flexibility, choose a ULIP like Promise4Growth Plus which provides a plethora of options.

Promise4Growth Plus

All of us have dreams for ourselves and for our families. Canara HSBC Life Insurance's Promise4Growth Plus is a ULIP that supports you in planning to achieve your dreams. It is a protection and savings oriented plan that provides you maximum flexibility with 7 different funds and 4 different portfolio strategies to choose from. There is also an option of Return of Mortality Charge. Switching and redirection of funds is a breeze with this plan. Plus, you also get Loyalty Additions and Wealth Boosters, and all of this is just a few clicks away!

Get a Personalised ULIP Plan for Wealth Creation & Protection

Please enter correct name Please enter the Full name
Please enter valid mobile number Please enter Mobile Number
Please enter valid email Please enter Email
Consent is required

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

Error

Sorry ! No records Found

.  Please use this ID for all future communications regarding this concern.

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.

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

How LTCG Tax Impacts ULIP Investments and Returns?
25 Mar '26
69 Views
7 minute read
Learn how LTCG tax affects ULIP investments, including taxation rules, returns impact and key considerations for long-term financial planning.
Read More
Ulip
How to Choose the Best ULIP Plan for Smart Investing?
10 Mar '26
1076 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
Why ULIPs Are Ideal for Stable Wealth Generation?
08 Mar '26
898 Views
6 minute read
Stable fund generation requires the right investment vehicle. Know why unit-linked plans are ideal for building a consistent fund corpus with market-linked growth, flexibility, and long-term wealth creation.
Read More
Ulip
What is NAV? Meaning, Calculation & Importance
08 Mar '26
888 Views
6 minute read
NAV is a key concept every investor should understand. Learn what NAV means, how it is calculated, and why it matters for ULIPs and your overall investment performance.
Read More
Ulip
How ULIPs Protect Your Family's Financial Goals & Future?
08 Mar '26
512 Views
8 minute read
ULIPs offer more than just investment returns - they protect your family's future too. A clear breakdown of how ULIPs safeguard your family's financial goals.
Read More
Ulip
Stop ULIP Premium Before 3 Years? Know the Consequences
07 Mar '26
948 Views
7 minute read
Stopping ULIP premiums before 3 years can lead to charges, lock-in restrictions, and limited access to funds. Learn what happens, the penalties involved, and the options to manage or revive your policy.
Read More
Ulip
How Does ULIP Partial Withdrawal Work? Key Rules & Limits
07 Mar '26
3909 Views
6 minute read
Not every ULIP policyholder knows the rules around partial withdrawals. A clear breakdown of how it works, withdrawal limits & tax impact in India today.
Read More
Ulip
What Returns Can You Expect From a ULIP in 10 Years?
07 Mar '26
895 Views
8 minute read
ULIPs can be powerful wealth-creation tools over a decade. Discover how much wealth you can realistically build in 10 years, based on returns, fund choices, and disciplined investing.
Read More
Ulip
Why You Should Not Surrender Your ULIP Policy Early?
07 Mar '26
891 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