The younger generation is reshaping old patterns of financial behaviour. Gen Z is increasingly aware that true financial security is about saving and life cover. A recent survey shows that 72 per cent of this group believes in buying term insurance before the age of 30. This mindset extends beyond basic protection to investing in solutions that grow over time and offer long-term benefits.
Hence, Unit-linked Insurance Plans, or ULIPs, are a natural next step in this journey. Plans such as Promise4Growth Plus provide life cover while also helping investments grow through market-linked funds. One feature of such modern ULIPs is also the return of mortality charges (ROMC). This ensures investors get full value while staying protected.
Today, let us understand what these charges are and their value addition for long-term investors.
Key Takeaways
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Mortality charges are the cost of keeping life cover active in a ULIP. They are deducted monthly from the premium you pay. This ensures the insurance part of your plan remains valid. The amount depends on age, cover amount, and policy design.
For many years, mortality charges were viewed as a drawback. Investors often felt they were losing value since these charges reduced the fund balance. The deductions were necessary for life cover, but many saw them as hidden costs. This perception made some people hesitant about ULIPs.
The return of mortality charges changes this picture. Instead of staying deducted, the charges are returned to the fund at maturity. This means the money you thought was gone comes back to enhance your savings.
For long-term investors, this feature is a turning point. It ensures you are not forced to choose between protection and growth. You get both, with the assurance that no value is lost in the long run. This fairness makes ULIPs far more attractive for disciplined savers.
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ULIPs in the past had a reputation for being expensive. Traditional ULIP products came with high fund allocation charges and limited transparency. Nevertheless, the new generation of low-cost ULIPs has transformed the scenario regarding investors’ choice. Plans like Promise4Growth Plus are comparatively low-priced, leaving more funds available for investment.
With lower charges, the power of compounding works more effectively. Over time, this makes a meaningful difference to the final maturity value. Modern ULIPs also come with tools that build confidence. Investors can track their portfolios online. They can switch between funds with ease. They also enjoy access to a wider range of funds that suit different risk appetites.
Return of mortality charges makes the offering even stronger. It adds fairness to the product and restores trust. Long-term investors benefit because the cost is low and any charges deducted for protection are returned later. This balance of efficiency and fairness is why low-cost ULIPs stand out today.
Long-term investing relies on two principles. The first is patience, and the second is compounding. When money remains invested, it earns returns. Those returns generate further returns, creating powerful growth over time.
Return of mortality charges supports this principle. Charges deducted during the policy are added back at maturity. This boosts the corpus without reducing the protection offered along the way.
Over a significant period, like a fifteen to twenty-year horizon, the difference is significant. The additional value returned to the fund increases the maturity benefit. This can help investors reach financial goals sooner or with greater ease.
There is also a psychological benefit. Investors feel reassured knowing they are not losing value to hidden costs. They see transparency and fairness in action. This aligns well with the expectations of a long-term investor, who demands clarity in financial products.
By combining long-term growth, protection, and fairness, ULIPs with return of mortality charges create an investment model that works for the modern investor.
Low-cost ULIPs with return of mortality charges bring together features that go beyond simple protection or growth. They address common concerns investors once had about charges while offering practical tools for long-term wealth creation. The following are the features that make ULIPs with return of mortality charges extra special:
ULIP maturity benefits are taxed at 10% as LTCG if the annual premium is above ₹2.5 lakh, but death proceeds remain tax-free.
Source: India Today
The Return of Mortality Charges, or ROMC, is a way of ensuring that investors get full value for their long-term commitment. With Promise4Growth Plus, the list of benefits for an individual at every life stage is extensive.
Here’s how ROMC strengthens the final corpus while maintaining protection throughout the different life stages:
ROMC transforms Promise4Growth Plus into more than just another ULIP. It is a feature that restores investor confidence, rewards long-term commitment, and ensures that no part of your investment journey feels wasted. However, while investing, the following things must be ensured:
Gen Z is showing the world that financial security is about balance. Saving and life cover must go hand in hand. ULIPs with return of mortality charges deliver exactly that. They combine growth, protection, and fairness in a structure designed for long-term investors.
Promise4Growth Plus by Canara HSBC Life Insurance is one such ULIP that brings these benefits together. It ensures protection during the journey and restores value at maturity. This makes it a partner for those who want to invest with clarity, confidence, and care for the future.
If you’re looking forward to making an investment in this, leverage our user-friendly investment calculator for more clarity, and then let’s connect for growing wealth and ensuring peace of mind.
Yes, ULIPs may provide tax benefits under prevailing laws. Premiums paid can qualify for deductions under Section 80C, and maturity proceeds attract exemptions under Section 10(10D). With ROMC added, investors benefit from tax efficiency and gain back charges at maturity. This makes the overall return structure more appealing for long-term planning.
The plan offers the Promise4Care Plus option with premium funding and a monthly income for families. Even if something happens to the policyholder, the plan continues. At maturity, ROMC enhances the fund value. This ensures children’s education and essential milestones are protected, combining immediate support with a substantial corpus for future needs.
Compounding allows returns to generate further returns when money remains invested. With ROMC, charges deducted for life cover are returned at maturity, adding more capital to benefit from compounding. Over long durations, this can significantly enhance the final maturity value, making ULIPs with ROMC ideal for disciplined, patient investors.
Yes, ULIPs with ROMC, especially whole life options, support retirement planning by offering cover up to 100 years. They build a substantial corpus through fund growth and loyalty additions. At maturity, ROMC adds back earlier deductions, further boosting retirement savings. This ensures peace of mind and a secure legacy for the family.
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.
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.
