This is a very valid question. In short, the answer to your question is, no. Investment returns from ULIPs may not be guaranteed.

This is because a ULIP is not merely an insurance product. It is also an investment product. As the funds of ULIPs are invested in the capital market, or equity market, they are exposed to market risks and volatility.

Thus, no one can claim to provide guaranteed returns in a ULIP and you shouldn’t believe anyone who promises you guaranteed returns in ULIPs.

In unit linked products/policies, the policyholder bears the investment portfolio’s investment risk.

Depending upon the performance of the unit linked fund(s) chosen, a policyholder may achieve gains or losses on his/her investments. As a prospective policyholder, you should know that past returns of a fund do not indicate its future performance.