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In ULIP, the investment risk in the investment portfolio is borne by the policyholder
A Unit-Linked Insurance Plan (ULIP) is an instrument designed for building real wealth. It also provides the vital protection of a life insurance cover, all within ... one policy. When you pay a premium, a fraction of it is used to secure your life cover. Your remaining money is put directly into market-linked funds that you choose based on your specific financial ambitions. You can target aggressive growth with equity funds or opt for the stability that comes from investing in debt instruments. This structure offers a versatile path for building wealth on your own terms. Read more
In Built Life Cover
Free Fund Switches
Partial Withdrawal
In Built Life Cover
Free Fund Switches
Partial Withdrawal
ULIP (Unit linked insurance plan) is a well-planned combination of two of the most basic financial instruments, market-linked investments and life insurance. Consider it as one policy, but one that has to serve two purposes.
A ULIP plan works differently as compared to a traditional term plan, which only provides life cover. It cuts a portion of your premium for insurance, and the remaining part is invested in the investment funds linked to the financial markets. Investors are free to change between various funds, allowing them to have dynamic portfolios as market conditions or personal risk tolerance start to change.
The ULIPs provide great tax benefits under Section 80C and 10(10D) of the Income Tax Act in addition to the possibility of wealth creation on the returns in the market. This gives them an exceptionally effective means of financial planning. Such tools as the ULIP calculators, combined with other tools, enable an individual to customize their investment to the exact fit with their financial goals. Finally, such plans will promote a disciplined outlook as protection and growth are packaged together into a flexible product.
You should buy a ULIP plan if your financial goals are achieving these two things: securing a life cover for your family and, at the same time, leveraging market-linked funds to increase your wealth.
If you are looking to grow your portfolio, here are some unique benefits that the best ULIP plan in India offers:
The inherent advantage of a unit linked investment plan is that it offers two-in-one benefits. At the core, each penny that you pay in premiums is split. One goes for a life cover so that in case of an emergency, your family does not undergo financial difficulties. All other parts of your premium are not idle; they are working in funds of your selection, whether equity, debt or a mix, and your capital gets to grow over your policy term.
A ULIP puts you in charge of your monetary decisions to a very large extent. There are several fund choices you can make based on your personal level of risk tolerance and the conditions of the market. More importantly, such plans even allow you to change the funds.
With ULIPs, there is perfect clarity on what happens to your money. You are able to monitor the fund performance on a regular basis and are able to allocate funds to meet the needs. This puts the control into your hands and readjusts your investments according to your goals in life or as the market changes, in a way that is both transparent and empowering.
Tax planning-wise, ULIPs are significantly effective. The premiums that you pay at the end of every year are eligible as deductibles under Section 80C as per the current tax limits of ₹1.5 lakh. More so, the maturity proceeds and death benefit are non-taxable under section 10 (10D), subject to specific provisions. This is the dual tax advantage of ULIPs, which makes it a very smart element of the long-term financial game plan.
Say you invest ₹2.4 lakh annually for 10 years. That's ₹24 lakh total investment. You're claiming ₹1.5 lakh in tax deductions every single year, which adds up.
After 10 years, let's say your ULIP returns in 10 years give you a maturity value of ₹32 lakh. Since your annual premium doesn't cross ₹2.5 lakh, that entire₹32lakh could be tax-free (assuming you meet the other conditions).
ULIPs are for the long term. They naturally encourage disciplined, consistent investing, which is the key to using the power of compounding. Such plans may turn out to be a pillar in meeting major life goals, like the higher education of a child or you having the means to retire as well, when kept invested over an extensive ULIP returns in 15 years.
As the world becomes more and more digitalized, ULIPs have turned out to be cheaper compared to the usual insurance plans. Their charges are competitive, their administrative expenses are lower, and they have better investment value, as well as enabling funds transfers at no additional fees. This gives flexibility, as well as maximizing returns at minimum overall expense.
The mechanics of the best ULIP plan in India are based on the principal idea of separating your premium to have two uses; one is protection, and the other is growth. Here is a practical analysis of how your money is spent:
A well-calculated amount of your premium is reserved in order to finance your life cover. This forms the foundation of the unit linked investment plan, whereby your family will get a death benefit and will be financially secured in case a calamity strikes without warning.
Most of your premium is then placed in the financial market. This is where the development occurs. You select the destination depending on risk appetite, which can be in aggressive equity schemes, steady debt funds or a balanced-hybrid. Not to mention that you are also able to redistribute those investments to maximize returns as the market changes.
Let’s see how this works in practice by considering an example of Sunita. Her example shows how a ULIP can help you grow your money while also giving life cover.
Unit-Linked Insurance Plans (ULIPs) have seen significant changes in taxability scale, and therefore, it becomes relevant to the investors to ask this question. In the past ULIPs had an EEE (Exempt-Exempt-Exempt) status, and thus the growth, investment and maturity proceeds fund all enjoy a tax-free status under Section 10 (10D) of the Income Tax Act. However, a new tax regime was revealed in the Union Budget of 2021, which brought the high-premium ULIP in line with the rest of the investments in the market, such as mutual funds.
In case you purchase a ULIP policy as on or after February 1, 2021, and the total amount of annual premium exceeds ₹2.5 lakh in any financial year in the policy period, the maturity proceeds are not treated automatically tax-free. One should bear in mind that the new tax provision does not affect the money that the nominee receives when the policyholder dies. The amount paid as a death benefit of a ULIP is completely tax-free, regardless of the amount of the premium. The proposed change essentially makes ULIP be in the same tax position as equity-oriented mutual funds.
When the maturity proceeds from a ULIP, it is taxed, and the earnings are treated like capital gains earned over time. The imposition of tax is as follows:
| Type of Gain | Holding Period | Applicable Tax Rate |
|---|---|---|
| Long-Term Capital Gains (LTCG) | More than 12 months | 10% on gains exceeding ₹1 lakh |
Now, we will examine the real life operation of these tax rules.
Scenario: One Policy-Below and Above the Limit
Take the case of Mr. Aaksh and Mr. Vinod. The amount paid by Mr. Aaksh on his insurance is ₹1,50,000 per annum. At the end of a decade, he will receive ₹30 lakhs in correspondent proceeds. The premium being charged to Mr. Vinod is in the range of ₹3,00,000 per annum. At maturity of 10 years, he will receive maturity proceeds of ₹48 lakh.
Taxability:
Mr. Aaksh's yearly premium is well below the ₹2.5 lakh limit. So, all of his maturity proceeds of ₹30 lakh are tax-free.
The ₹3,00,000 premium that Mr. Vinod pays each year is higher than the threshold limit. Thereby, he has to pay taxes on the money he makes from his policy.
Taxable Gain: ₹48 lakh (Maturity) - ₹30 lakh (Total Premium Paid) = ₹18 lakh
Yes, surrendering or canceling your Unit-Linked Insurance Plan is possible. The timing of this choice is everything. Your options lie in the mandatory 5-year lock-in period that governs all ULIPs. If you surrender early, you will face discontinuance charges and give up potential investment returns. This is a decision that requires serious thought.
Your process and the final outcome change based on when you decide to act:
ULIP plans open up various investment choices. You can tailor them to fit certain financial goals and achieve a specific blend of wealth creation and financial safety.
| Types of Fund Options | Details |
|---|---|
| Equity Based ULIP Funds | These funds channel your premium into the stock market. This means a higher risk profile for a higher potential reward. |
| Hybrid or Balanced Funds | A mix of equity and debt investments. They provide a medium-risk approach with steadier return forecasts. |
| Debt Based ULIP Funds | These funds prioritize government securities and corporate bonds. The risk is lower, and returns are stable but more modest. |
| Cash Funds | Think of these as the safety-net option. Funds are placed in bank deposits and short-term instruments. They are the most secure ULIP fund available. |
| Parameter | Type 1 ULIP Plans (Focus on Life Cover) | Type 2 ULIP Plans (Focus on Investment Returns) |
|---|---|---|
| Lock-in Period | 5 years | 5 years |
| Investment Options | Equity, debt, or a mix of both | Equity, debt, or a mix of both |
| Returns | Market-linked returns | Market-linked returns |
| Death Benefit | The nominee gets the higher amount between the sum assured or the current fund value. (Example: If the fund is ₹50L and the sum assured is ₹40L, the payout is ₹50L). | The nominee gets both the sum assured and the fund value combined. (Example: If the fund is ₹50L and the sum assured is ₹40L, the payout is ₹90L). |
| Objective | Ensures a guaranteed payout to the nominee | Aims to maximize the final payout and the investment growth. |
| Suitable for | Anyone who wants life cover first, with steady market-linked growth as a bonus. | An individual willing to invest more with higher premiums to get larger potential benefits. |
| Sum at Risk | Reduces over time as fund value increases | Reduces over time as fund value increases |
| Purpose-Driven ULIP Solutions | Details |
|---|---|
| ULIP for Wealth Creation | This plan is for the long haul. It presents an opportunity to build a significant corpus through market-linked growth |
| ULIP Plans for Child Education | Use this plan to construct a dedicated education fund. It also ensures family financial stability if you are no longer around. |
| ULIP for Health Benefits | Certain ULIPs allow access to funds during a medical emergency. You can often attach specific health riders. |
| ULIP Plans for Retirement | These plans are designed to help you build a large retirement corpus over your working years, delivering returns after you retire. |
To buy a ULIP, you need to meet a few key requirements. These rules are in place to make sure the policy is a good fit for you. Since a ULIP is a market-linked product, it is designed for investors with a long-term outlook who understand the associated risks.
Here are the primary eligibility points:
A ULIP is an incredibly versatile financial tool. It is powerful for many different investors with a wide range of goals.
A ULIP is a powerful way to fund a child’s future education. It provides a disciplined saving method combined with the security of life insurance.
It is an ideal starting point for young professionals. You get market-linked growth potential and essential life insurance coverage in a single, manageable plan.
Entrepreneurs need flexibility. A ULIP delivers that, allowing their personal wealth to grow even when business is unpredictable.
For retirees, a ULIP can create a more stable income stream. Plans focused on debt funds provide an extra layer of stability after your working years are over.
A ULIP is a highly effective tool for high-income earners. It helps you save on taxes under Sections 80C and 10(10D) while building wealth.
A ULIP can help self-employed individuals build a real financial safety net. It allows you to create a stable fund without touching your business capital.
ULIPs are an empowering financial tool for women. You get security, tax savings, and real growth potential all in one package.
For a first-time investor, this is a great way to enter the market. You get to learn about investing with the built-in safety of a life insurance backup.
A ULIP helps business owners diversify their personal wealth beyond their company. It offers stable returns and the control to manage your portfolio actively.
Fund 5 year Returns
21.5%
Bench Mark 5 year returns
18.4%
Investment objective
Aims for a high level of capital growth for you, by holding a significant portion in large sized company equities.
Fund 5 year Returns
19.5%
Bench Mark 5 year returns
19.3
Investment objective
Aims to maximize opportunity for you through long term capital growth, by holding a significant portion in a diversified and flexible mix of large / medium sized company equities.
Fund 1 year Returns
9.5%
Bench Mark 1 year returns
-2.1%
Investment objective
Aims to maximize opportunity for long-term capital growth, by holding a significant portion in a diversified and flexible mix of medium and small sized company equities.
Fund returns are as on 31st-July-2025 Click here to view past performance of the funds
A ULIP is not like other insurance policies. A part of your premium is invested in market funds that you control. These are the plan's most important features:
You have total control over your investment strategy. You can direct your money toward aggressive growth in equities. You can seek stability through debt funds. Or you can find a middle ground with balanced funds.
Markets are always changing. A ULIP gives you the power to adapt. If you feel the equity market is too risky, you can move your capital to the relative safety of debt funds. You can then switch back to capture growth when you see a better opportunity.
After the five-year lock-in, you can access your funds in an emergency. But be careful. Frequent withdrawals will damage your long-term growth. This option is a tool for true emergencies only.
A top-up premium lets you invest more in your existing unit linked health insurance plan. It is a simple and effective way to boost your capital without getting a new policy.
The tax benefits are a major advantage. You get tax deductions on premiums under Section 80C. The final payout can also be completely tax-free under Section 10(10D).
Securing your future requires a strong financial corpus. The benefits of ULIP plans are designed to help you build that foundation. These unit linked investment plans offer a structured path toward your financial goals.
Unit Linked Insurance Policies give you the power to pick a life cover that fits your needs, often between 7 to 20 times your annual premium.
A yearly ₹1 lakh investment might open up a life cover between ₹7 lakh and ₹20 lakh. Selecting a ₹15 lakh cover ensures that your family receives that amount during a crisis. It is direct financial protection.
A ULIP's best feature is your power to direct its investments. You get the control to shape the plan and align it with your personal financial strategy.
The ULIP journey includes certain rewards called wealth boosters. The plan adds these extra units to your policy when you reach key milestones, such as staying invested for five years or more.
Once your policy term concludes, you receive the accumulated fund value from your paid premiums and market-linked returns.
ULIPs provide valuable tax benefits at both the entry and exit stages of the investment.
Such benefits are subject to market risks and changing tax laws. It is also advisable to consult a financial advisor to be on the safe side.
Your policy gets extra units at set intervals through loyalty additions. Think of them as a direct reward for your long-term commitment. These additions boost your investment's growth potential.
ULIPs excel at goal-based investing. Use them for increasing personal wealth or for planning for your retirement. A ULIP for child education is also a powerful tool for funding future ambitions.
You get the freedom to switch between an insurer's fund options. Moving your money between equity, debt, or balanced funds is simple. This process puts you in charge of managing market risks and returns.
The plan includes a comprehensive death benefit for your family's security. Should an untimely event occur, your nominees get the proceeds based on the policy's terms.
Invest in your dreams with Kotak Life Insurance ULIP plans.
Buy NowA ULIP is both insurance and an investment. As with any financial product, certain charges apply that can impact your returns. Knowing these charges is a vital step for every investor.
Your insurer deducts standard fees to manage the policy. This covers paperwork, record-keeping, and service.
A small percentage of your fund value is charged for its professional management, whether in equity, debt, or balanced funds.
A portion of your initial premiums covers costs like agent commissions and underwriting. The remainder of your money is invested.
This charge pays for the life insurance part of your policy. The cost depends on your age, health, and the cover you chose.
You can move your investment between funds. You receive some free switches each year. A small fee applies if you exceed this limit.
Closing a ULIP within the five-year lock-in period results in a surrender charge penalty.
You can withdraw money after five years. Some withdrawals are free, but charges may apply if you exceed the set limits.
Kotak Life offers several ULIP schemes that best meet your requirements. You can understand the benefits, features, and investment strategies associated with these ULIP plans. The following are our top recommendations.
Insurance companies offer a ULIP calculator as a free online tool. It projects potential returns and premiums for you. With so many features available in the best ULIPs, choosing one gets tough. The calculator simplifies everything. It brings you clarity, even showing you how is CAGR calculated in ULIP.
Investment Amount(Monthly)
Investment Tenure(Years)
Interest Rate(P.A.)
Sensex has given 10% return from 2010 - 2020
Existing Investment(optional)
Periodic Investment(optional)
Comparing tax-saving investments under Section 80C is smart. You must look at lock-in periods, risk, and returns. The ULIP stands out. It is the only one delivering investment growth and life insurance in one plan. Here is how ULIPs compare to ELSS and PPF.
| Particulars | ULIPs | ELSS | PPF |
|---|---|---|---|
| Lock-in Period | 5 years | 3 years | 15 years |
| Tax Benefits | Section 80C eligibility. Maturity amount may be tax-free per Sec 10(10D). | Provides Section 80C eligibility. | Section 80C eligibility. Maturity proceeds are fully tax-free. |
| Taxation | Taxation is based on assets; equity funds can attract LTCG. | Gains over ₹1 lakh have a 10% LTCG tax annually. | No tax on interest or maturity amount. |
| Underlying Assets | Equity, debt, or hybrid funds | Primarily equity | Government-backed fixed income instruments |
| Risk Profile | Market-linked. Risk is higher, but with potential for high returns. | Moderate to high risk | Generally safe with guaranteed returns. |
| Charges | Includes charges for mortality, allocation, switching, and more. | Expense ratios typically run between 1.05% and 2.25%. | Charges are minimal. A one-time fee is taken to open the account. |
Getting optimal returns from your ULIP demands more than just investing. It requires a smart, active strategy. These tips are proven to help increase your returns and build real financial security.
An early start is a powerful advantage. It gives the power of compounding more time to work, allowing your investment to multiply and build greater returns over the years.
Investing on a regular schedule helps you manage market fluctuations. This approach uses rupee-cost averaging, a proven method for achieving better long-term results.
A diversified portfolio helps to stabilize risk and reward. Spreading your investment across different equity and debt funds helps you work towards your goals more effectively.
Periodic review of your portfolio will help you to realign it with your financial objectives and will also enable you to reposition yourself with changing market trends. Staying aware of the current market trends can assist in making well-informed decisions during ULIP renewal, to ensure the investment strategy can be manipulated to achieve better long-term benefits.
Take full advantage of the tax laws. A ULIP gives you valuable deductions on your premiums under Section 80C. The maturity benefits are also tax-exempt under Section 10(10D).
Now, let us observe the power of compounding under different situations:
Do not wait; start growing your wealth with Kotak e-invest plus. Take the first step
When I was planning for my child's future, my friends recommended me about investing in ULIP. The benefits that ULIP offer were very well aligned with my requirements. This is why I started researching and came to know about the Kotak e-invest plus plan. I went through their online portal and got to know the premiums, returns and everything. I realized that Kotak ULIP plans was the best plan for me, and I bought it.
-Mr. Ambadas Sulakhe
ULIP insurance plans are new-age investment instruments that offer tax benefits and market-linked returns. I read about it online and started to think about my investments. I thought this could be a good addition to my financial portfolio. They offer market-linked returns with no Capital gain taxes. And I could easily optimize my returns by choosing the funds wisely. So, I decided to start my Kotak ULIP plan.
- Mr. Darpan V Mehta
Investments have always helped me achieve my difficult life goals. So, I make sure that every month I invest in the right instruments. Just when I was looking for a new investment option, I came across Kotak ULIP plan. They have various plan options; premium payment mode is flexible which is perfect for me. The plan aligned with my requirements and offered excellent returns which makes this one a best ULIP plan for me.
- Ms Munera Janvekar
Kotak ULIP plan is one of the best investment instruments I decided to invest my hard-earned money in. It gives me various fund options that help me manage my portfolio and make sure that my investment is optimized all the time. This way, I can gain returns when the market is high and go for debt funds when the markets go down. A win-win. If you are looking for such a plan, I recommend you to invest in Kotak ULIP plan.
- Mr Sujitbhai Ashokbhai Kanjariya
I was looking for investing a sum of amount that can give me good returns over the long term. I came across Kotak ULIP plan and decided to give it a try. I logged in to understand the plan and their call center executive helped me understand everything about the plan. I went ahead with the plan and the plan is giving me good returns and I can monitor them year on year. If you are looking for a long term investment with solid returns, I recommend you to invest in Kotak ULIP plan.
- Ms Neeti Garg
My friends recommended me to invest in an ULIP plan when they came to know that I am planning to buy a house in the future. I went online, spoke to my friends and came across Kotak ULIP plan. I registered on their portal where they showed me all plans, premiums and returns upfront. I completed the application process upload documents and made my payment. I was happy to make this decision as I can now monitor my returns and make a fund switching decision when required.
- Mr Santosh Kumar
Finding the right ULIP involves a close look at your own financial needs, your tolerance for risk, and your long-term goals. A clear review of the ULIP advantages and disadvantages is what helps you find a plan that works for you.
It is important to ensure that a ULIP fits within your financial plan when you are buying one. The combination of investment and insurance advantages has made ULIPs a unique package; however, in order to gain maximum returns, it is important to be aware of the pitfalls. Some of the pitfalls to be aware of include:
Buying a ULIP online is now easier than ever. You can get a policy directly from an insurer's website or through a trusted online insurance marketplace. With Kotak Life, securing your ULIP policy online is straightforward and only takes a few steps.
All you have to do is follow through with the following steps in order to get started with the unit linked investment plan of your choice:
Open the Kotak Life website and go to the ULIP Plans section. You will see plans like Kotak Life E-Invest Plus and TULIP, which offer insurance cover and market-linked investment opportunities.
Enter your name, mobile number, and a few basic details to get a customized quote as per your investment goals.
Compare different ULIPs on the basis of fund selection, the duration of the policy, and the returns. Your final selection should fulfill your financial goals and risk profile.
Decide how much you wish to invest, how often you wish to pay premiums (monthly or yearly), and what kind of investment strategy you would prefer. You can also choose your investment timeline as per your financial objective, whether you are targeting ULIP returns in 5 years, ULIP returns in 20 years, or ULIP returns in 40 years. This will enable you to make your policy flexible in order to meet both the short and long-term goals.
Provide your personal data and verify it with your income details and KYC record. Give your health records as well.
Pay securely after choosing your payment method. As soon as it is confirmed, your ULIP policy document will be sent to you through email, and that is the start of your financial journey with Kotak Life.
Kotak Life’s ULIP options, including E-Invest Plus and TULIP, offer a thoughtful mix of wealth creation and life cover. With benefits like zero allocation charges, higher protection, and smart investment choices, these plans are designed to help you grow your money while keeping your family financially secure.
Let us learn further about the benefits of Kotak T.U.L.I.P and E-invest plans and why you should consider them:
With Unit Linked Insurance Plans, you get an opportunity to increase your wealth as well as have cover against financial shocks. Naturally, the tax advantages are one of the greatest motivators to enter any ULIP plan.
Premiums paid towards ULIP plans qualify for tax deductions under Section 80C of the Income Tax Act, 1961. As per current tax laws, you can claim up to ₹1.5 lakh in a financial year. It should be noted that only the premium faces this deduction, and not the total amount invested in the ULIP.
Most significantly, proceeds in case of a maturity and investment income are tax-free under section 10(10D) of the Income Tax Act, but this is dependent on terms and conditions under the Income Tax Act. To avail this benefit, the annual premium should not exceed 10% of the sum assured, and the annual aggregate premium should be up to ₹2.50 lakhs.
This switching flexibility in ULIPs also allows an investor to switch between two or more funds depending on the market situations or investment preferences. The best part, of course, is that such switches are tax-exempt. You can optimize your investment by taking benefit of market movements without incurring any tax consequences.
The policyholder, under the ULIP policy, is permitted to withdraw a part of the investment under specific terms and conditions. The amount withdrawn is tax-exempt under section 10(10D), subject to conditions specified under the Income Tax Act.
It is very important to maintain the policy for a minimum period to avail of the tax benefits. Tax benefits availed during the policy period will be added back to taxable income if the policy is discontinued within five years from the date of commencement.
The existence of the ULIPs has been a subject of debate amongst investors for years now. While there are people who regard them as a smart, one-stop-shop investment option, there are others who approach them with caution due to various misconceptions. Here’s a look at a few of the most common myths and the truth behind them:
One common myth about ULIP plans is that they are too expensive to be worth it. While it is true that they come with certain charges, these costs are generally reasonable, especially when you compare them to other investment options like mutual funds or portfolio management services, which also have their own fees. The key is to understand what you're paying for and how the plan's benefits can outweigh these charges in the long run.
Another widely held misconception is that ULIPs deliver poor returns compared to options like mutual funds or direct equity. In reality, ULIP performance depends on factors such as your investment duration, the type of funds you choose, and the track record of the insurance provider. With the right choices and a long-term view, returns can be competitive.
Some people also believe that ULIPs lack transparency. However, these plans are regulated by the IRDAI, which requires insurance companies to disclose all important details about the scheme clearly. This ensures investors have access to the information they need to make smart choices.
Although the minimum lock-in period for ULIP plans under IRDAI regulations is five years, it also gives investors an opportunity to receive compounding powers that work long-term.
ULIP plans indeed provide life insurance, but they are also an investment product. They provide a dual advantage of insurance protection and potential wealth creation through market-linked returns.
It is true that ULIPs are linked to the market, but the level of risk is in your hands. If you opt for equity funds, your returns might fluctuate in the short term, but can grow significantly over time. If you prefer a steadier approach, debt funds focus more on stability and capital protection. By going for the right mix of funds and staying invested for a long time, you can balance risk and reward effectively.
The best ULIP is the one that fits your life. It must align with your personal goals, your tolerance for risk, and your budget. To find it, you need to look closer. Judge the fund's performance. Scrutinize the charges. Test the plan's flexibility. When you compare plans this way, the right choice becomes clear.
A ULIP is a strong choice for those who want insurance and investment returns in a single package. You get the freedom to choose funds that match your risk appetite. This lets you build a portfolio for long-term wealth and protection.
ULIPs are designed for the long haul. They come with a mandatory 5-year lock-in period. The real power, however, comes from staying invested much longer. Compounding needs time to build momentum. A long investment horizon is what unleashes its full wealth-creating potential.
There are several differences between ULIPs and traditional plans. Here’s how they differ:
The choice between them depends entirely on your own financial goals and preferences.
ULIPs offer key advantages for anyone seeking both insurance and investment growth:
A ULIP is a hybrid. It offers you both life insurance and an investment component in one plan. A SIP, however, is a pure investment tool for putting money into mutual funds. While a SIP is great for investing, it offers no life cover. That is the key difference.
Yes. Most ULIPs let you switch between different funds. You can move your money based on your specific investment goals and your appetite for risk. Most policyholders can switch their investments between the various funds the insurance company offers.
If you stop paying your ULIP premium within the 5-year lock-in period, your policy moves into a discontinued fund, where it earns minimal returns until withdrawal is allowed after five years. After the lock-in period, you may surrender or convert it into a paid-up policy with reduced benefits.
Yes, ULIP does provide a death benefit, which would take care of your family when you are not around anymore. In the event of the premature death of the policyholder, the greater of the sum assured and the fund value is paid to the nominee. Additional riders are also provided in some of the plans.
Yes, under the ULIP Plans offered by Kotak Life, you can extend your coverage by including various riders like accidental death benefit, critical illness, or waiver of premium to provide an additional level of financial safety on top of the original plan itself.
Surrendering a ULIP before the 5-year lock-in period leads to fund transfer into a discontinued policy fund, subject to charges. The amount is accessible only after the completion of five years. Post lock-in, surrendering gives you the fund value minus applicable charges.
To select the best ULIP plan, consider:
Yes, you can. It can be easily done online via Kotak Life's web portal. You will need to compare plans, calculate your premium, and enter your details. Then you can choose a fund strategy, do your KYC, and make the payment from home.
Yes, ULIPs come under the watch of IRDAI, hence transparency and protection of the investor are guaranteed. They provide you with a combination of market-linked returns and life cover, and you can both grow wealth and ensure your financial future. There is also the flexibility of fund switching that assists in the management of risk.
ULIPs have various charges. The most common ones include:
It is important to carefully review the policy documents to understand the specific charges applicable to your ULIP plan, as they can vary between insurance providers and policies.
The minimum premium for a ULIP depends on the insurance company and the specific product you choose. Different ULIP plans will also have different premium payment options.
Most ULIP plans allow you to increase your premium by making top-up investments. This helps improve your fund value and also offers tax benefits. But in most cases, a reduction in the premium is normally not possible because the policy has to have a minimum premium to remain operational.
The premiums paid towards ULIPs can be claimed against an individual under Section 80C of the Income Tax Act, where a deduction limit is possible up to ₹1.5 lakhs every year. Also, the proceeds of maturity are tax-free under section 10(10D) under the rules of limitation of the premium-to-sum assured ratio.
ULIP returns are not classified as "interest" but rather market-linked gains. If the annual premium exceeds ₹2.5 lakh, gains from ULIPs are taxed as capital gains. However, if the premium is below this threshold, maturity benefits remain tax-free under Section 10(10D).
ULIPs have various charges, including:
No, ULIPs are transparent, and all charges are disclosed upfront in the policy document. However, investors should review the charge structure to understand deductions and fund value impact over time.
Most ULIPs allow a certain number of free switches per year. Beyond this limit, a nominal charge (typically ₹100-₹500 per switch) may apply. Kotak Life’s ULIPs offer free fund switches up to 4 times per year to help manage investments efficiently.
Though mutual funds are less expensive in terms of fund management charges, ULIP offers a two-fold advantage; that is, investment and a life cover. In addition to mortality and administration fees, ULIPs offer tax benefits, life cover, and long-term wealth creation, making them cost-effective for disciplined investors.
The NAV is calculated by dividing the total net assets of the fund by the number of units outstanding. The fund value of your ULIP plan is determined by multiplying the number of units held in each fund by the respective NAV of those units.
ULIP (Unit Linked Insurance Plan) combines life insurance with investment. The ULIPs do not guarantee a fixed rate of interest like that of fixed deposits or savings accounts. Rather than that, returns are subject to profits on selected investment funds, which are affected by the market conditions. The latter qualifies ULIP returns as market-linked and dynamic in nature.
As the ULIP plans are market-related, they deliver varying returns according to the market situation. The equity funds that are included in ULIPs are more volatile, but their debt funds are stable. Long-term investment in ULIPs, however, has the advantage of evening out market volatility and has the highest probability of growth.
Yes, Kotak Life offers an online portal and mobile application where you can track your fund performance, NAV (Net Asset Value), fund switch, and policy management in real time.
No, ULIPs do not assure returns, since they are linked to market performance. However, by selecting balanced or debt funds, investors can mitigate the risk and target achieving more stable growth.
In case your selected ULIP fund does not perform, you can:
Yes, ULIPs provide you with a fund switching option, where you can invest across equity, debt, and hybrid funds according to the changing market conditions and your risk-taking ability. Kotak Life offers you up to 2 free switches in a year to help you optimize your portfolio.
In order to get the best out of ULIP:
Yes, you can cancel or surrender a ULIP during the lock-in period. Surrendering a ULIP before the end of the lock-in period will attract charges along with penalties that will impact the surrender value very severely. You can surrender a ULIP after the completion of the lock-in period without paying any charges.
ULIP plans allow taking back any amount from the plan after it has completed its lock-in period, which, in most cases, is for five years subsequent to the date of purchase. Once the lock-in period is over, you may partially withdraw or surrender the ULIP in full without any charges or penalties being levied on you.
Normally, ULIP plans come with a lock-in period of five years from the purchase date. Once the lock-in period expires, you are free to withdraw the amount partially or fully without any charges or penalty.
Yes, a few ULIP plans allow the facility to take up a loan against the policy. However, such an option is subject to the discretion of the insurance companies and ULIP products. Normally, such loans can be available as a percentage of the ULIP fund value.
Proceeds received under the ULIP plan on maturity and accumulation of additional benefits are tax-free under Section 10(10D) of the Income Tax Act, provided conditions under the Income Tax Act are satisfied. It is recommended that you get a tax consultant who will give you the details of taxation according to your case.
Yes, there is a possibility of partial withdrawals following the lock-in period of 5 years. The majority of ULIPs offer withdrawal of up to a specified percentage of the policy value, which gives you liquidity without closing your policy.
In case you want to take money out of your ULIP plan:
In the new tax regime, premiums of more than ₹2.5 lakh paid to a ULIP in a year will attract capital gains tax on the money payable upon maturity. The lower premium policies, however, continue to be tax-free under Section 10(10D). The death benefit, however, is not taxable, no matter how much the premium is.
Yes, any withdrawal before 5 years will simply have your money transferred to a discontinued policy fund, and your money is guaranteed a minimum at that point. Also, the amount can only be accessed upon the end of your lock-in period, and they may also impose a surrender charge.
Yes, it is possible to reinvest your ULIP maturity value in a different ULIP or any other kind of investment plan so as to carry on with wealth creation and insurance benefits. Kotak Life has various options of ULIP that will help you in achieving various financial goals with the assurance that your money grows.
You may avail of tax benefits under Section 80C and Section 10(10D) of Income Tax Act, 1961 subject to conditions as specified in those sections. Tax benefits are subject to change as per tax laws. Customer is advised to take an independent view from tax consultant.
The calculation is generated on the basis of information provided and does not constitute an offer or solicitation for the purpose of purchase or sale of any product. Further customer is the advised to go through the sales brochure before conducting any sale.
Some ULIP instruments offer you an option of partial withdrawals. There are various conditions under which this can be done, but it varies from product to product.
Applicable Rider Charges will be deducted from the Fund value if the Riders are chosen. There are different rider options that can enhance your protection and it is recommended that you check them out.
If the policyholder does not agree to the terms and conditions mentioned in the policy document, he/she can always return the policy. This can only be done within 30 days of accepting the policy depending on the channel through which the policy was bought. This period is called free-look period and the insurance company should refund the premium to the policyholder.
There are a few charges which can be deducted before the refund-
The premium figures are net of Goods and Services Tax and Cess, as applicable. Goods and Services Tax and Cess rates are subject to change from time to time as per the prevailing tax laws and/or any other laws.
Tax benefits are subject to conditions specified under the Income-tax Act, 1961. Tax laws are subject to amendments from time to time. Customer is advised to take an independent view from tax consultant.
The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender /withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year from inception.
Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. Please know the associated risks and the applicable charges (along with the possibility of increase in charges), from your Insurance agent / Corporate Agent / Insurance Broker / Intermediary or policy document of the insurer. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. All benefits payable under the Policy are subject to the Tax Laws and other financial enactments, as they exist from time to time.
This website content is not a brochure and only gives the salient features of the plans.
For more details on risk factors, terms and conditions please read the individual products sales brochure carefully before concluding a sale.
Kotak e-InvestUIN – 107L121V02, Kotak e-Invest; UIN – 107L121V02. This is a non-participating unit-linked life insurance individual savings product.
Kotak T.U.L.I.PUIN: 107L131V02. This is a non-participating unit linked Life Insurance Individual Savings Product.
Kotak Invest MaximaUIN: 107L073V05. This is a non-participating unit linked Life Insurance Individual Savings Product.
Kotak Single Invest AdvantageUIN: 107L065V05. This is a Non-Participating Unit-Linked Life Insurance Individual Savings Product.
Kotak PlatinumUIN No.: 107L067V07. This is A Non-Participating Unit-Linked Life Insurance Individual Savings Product.
Kotak Wealth Optima Plan UIN: 107L118V03 This is a non-participating unit-linked life insurance individual savings product.
Kotak e-Invest PlusUIN: 107L137V02. This is a non-participating unit-linked life insurance individual savings product.
Kotak Confident Retirement BuilderUIN: 107L136V02 This is a non-participating unit-linked pension individual savings product. This product is available for sale through online mode.
Kotak Confident Retirement Savings PlanUIN: 107N162V01 This is a participating non-linked pension individual savings plan. This product is available for sale through online mode.
Benefits under plans are dependent upon the performance of the participating Funds. Please note that Bonuses are NOT guaranteed and may be as declared by the Company from time to time.
The risk factors of the bonuses projected under the product are not guaranteed. Past performance doesn’t construe any indication of future bonuses. The products are subject to the overall performance of the insurer in terms of investments, management of expenses, mortality, and lapses.
The assumed non-guaranteed rates of return chosen in the illustration are 4% p.a. and 8% p.a. These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back as the value of your policy is dependent on a number of factors including future investment performance. The actual experience may be different from the illustrated. Please note that Bonuses are NOT guaranteed and may be as declared by the Company from time to time.
Section 41-
Extract of Section 41 of the Insurance Act, 1938 as amended from time to time states: (1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. (2) Any person making default in complying with the provisions of this section shall be liable for a penalty which may extend to ten lakhs rupees.
Section 45-
Fraud Misstatement would be dealt with in accordance with provisions of Section 45 of the Insurance Act, 1938 as amended from time to time. Please visit our website for more details: Read more about section38_39_45_of_insurance_act_1938
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/ FRAUDULENT OFFERS
IRDAI or its officials is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.
Regd. Office: Kotak Mahindra Life Insurance Company Ltd. Reg No. 107; CIN : U66030MH2000PLC128503; Regd. Office: 8th Floor, Plot # C- 12, G- Block, BKC, Bandra (E), Mumbai – 400051 | Website: www.kotaklife.com |
WhatsApp: 9321003007 | Toll Free: 1800 209 8800 | ARN No. KLI/25-26/E-WEB/929
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