Life insurance is not only about protection anymore — it’s also about growing your wealth. In 2025, Sri Lanka’s insurance market is transforming rapidly, offering a wide range of savings-linked and investment-linked life insurance plans. These policies combine financial protection with wealth accumulation, ensuring both short-term stability and long-term growth.
Whether you’re planning your child’s education, saving for retirement, or building generational wealth, investment-linked life insurance gives you a smart way to do it safely.
What Are Life Insurance Plans with Savings and Investment Options?
These are hybrid policies that offer:
- Life cover – A guaranteed death benefit to protect your family.
- Savings or investment returns – A portion of your premium is invested or saved to generate income.
There are two main types:
1️⃣ Endowment Life Insurance (Savings-Focused)
- Combines life protection and guaranteed savings.
- You receive a lump sum at policy maturity.
- Ideal for low-risk individuals who prefer guaranteed returns.
2️⃣ Unit-Linked Life Insurance (Investment-Focused)
- A portion of your premium is invested in equity or bond funds.
- Returns depend on market performance.
- You can choose between high, medium, or low-risk fund portfolios.
Top Life Insurance Companies Offering Investment & Savings Plans in Sri Lanka (2025)
| Company | Popular Plans | Key Features |
|---|---|---|
| AIA Insurance | AIA Wealth Planners, AIA Life Investment Plan | Market-linked growth with bonus options. |
| Ceylinco Life | Ceylinco Retirement Plan, Education Endowment | Guaranteed annual dividends; high reliability. |
| Softlogic Life | Life Wealth Plus, Life Partner Plan | Flexible fund switching and online tracking. |
| Union Assurance | Union Investment Plan, Union Life Savings | Transparent returns and tax benefits. |
| Sri Lanka Insurance Life | Life Protect, Life Saver | Strong government backing, steady bonuses. |
1️⃣ AIA Life Investment Plan
- Type: Unit-linked
- Minimum Term: 10 years
- Unique Feature: Dual benefit – protection + fund growth
- Funds Available: Equity, Balanced, and Secure Fund options
- Returns: Based on market performance; average 8–12% over the past decade
✅ Ideal For: Young investors and professionals seeking long-term growth.
2️⃣ Ceylinco Life Family Savers Plan
- Type: Endowment with guaranteed maturity benefits
- Policy Term: 10–25 years
- Bonus Rate: Up to 6% annual
- Additional Benefits: Family income benefits, critical illness cover
✅ Ideal For: Families planning education, marriage, or retirement goals.
3️⃣ Softlogic Life Wealth Plus
- Type: Investment-linked
- Special Feature: “Dynamic Fund Switching” — automatic balance between high and low-risk funds.
- Tax Benefit: Premiums may qualify for deductions.
- Digital Access: Manage policies via Softlogic Life app.
✅ Ideal For: Millennials and tech-savvy investors.
4️⃣ Union Assurance Investment Plan
- Type: Savings + investment hybrid
- Bonus System: Annual reversionary and terminal bonuses
- Additional Rider Options: Health, accident, and spouse cover
- Claim Process: 100% digital claim tracking
✅ Ideal For: Those seeking transparent long-term plans with online convenience.
5️⃣ Sri Lanka Insurance Life Saver
- Type: Endowment
- Special Benefits: Loyalty bonuses every 5 years
- Government Trust: Backed by Sri Lanka Insurance Corporation
- Return Range: 5–8% steady performance
✅ Ideal For: Middle-income individuals preferring stability over market risk.
Investment Returns Comparison (Average 10-Year Performance)
| Company | Average Annual Return (%) | Policy Type |
|---|---|---|
| AIA Insurance | 10–12% | Unit-linked |
| Ceylinco Life | 6–8% | Endowment |
| Softlogic Life | 9–11% | Investment-linked |
| Union Assurance | 7–9% | Savings-linked |
| SLIC Life | 5–7% | Endowment |
Benefits of Life Insurance with Savings or Investment
- Dual Benefit: Protects your family and builds wealth.
- Disciplined Savings: Encourages regular contribution habits.
- Tax Savings: Many plans qualify for deductions under Sri Lankan law.
- Long-Term Security: Ideal for retirement or education goals.
- Inflation Protection: Investment-linked plans can outpace inflation.
Risks to Consider
- Market Volatility: Unit-linked plans depend on fund performance.
- High Early Exit Charges: Withdrawing early may reduce returns.
- Policy Misunderstanding: Always read the fund fact sheet before investing.
Tips to Choose the Best Plan
- Define Your Goal – Is it savings, investment, or protection?
- Compare Returns vs. Risk – Check historical fund data.
- Ask About Fees – Admin and fund management charges matter.
- Read the Fine Print – Especially around bonuses and riders.
- Consult a Licensed Advisor – To match your income and goals.
Example Scenario
Imagine Rashmi, a 32-year-old teacher, invests Rs. 8,000/month in an AIA Unit-Linked Plan for 20 years.
- Total paid: Rs. 1.92 million
- Expected maturity value (10% annual growth): Rs. 5.4 million
- Life cover: Rs. 10 million
Even if Rashmi passes away, her family receives Rs. 10 million — ensuring both protection and investment benefit.
Future of Savings-Linked Life Insurance in Sri Lanka (2025 and Beyond)
The Central Bank of Sri Lanka expects double-digit growth in the life insurance sector through 2028. More people are turning to hybrid policies because they offer security + investment flexibility.
Insurance companies are also introducing:
- Digital investment dashboards
- Green/ethical investment funds
- Blockchain-based policy tracking systems