Buy a Life Insurance Plan in a few clicks
Protect your family's financial future.
Insurance and Investment in one plan.
A plan that offers immediate or deferred stream of income
Thank you
Our representative will get in touch with you at the earliest.
Features
Ref. No. KLI/22-23/E-BB/492
Investment insurance is a financial product that combines the benefits of insurance and investment, providing you with protection and wealth creation. It ensures financial security for your loved ones while helping you grow your money over time. With an insurance investment plan, you can safeguard your future and achieve long-term financial goals effectively.
An investment insurance plan, also known as a variable universal life insurance plan, provides both financial security as well as financial growth to the investor. It has two main parts:
Under the regular insurance policy, you and your beneficiary receive the benefits of the policy after the occurrence of an uncertain event, but in the case of investment insurance, you receive a return from your policy before the occurrence of an unfortunate event. Therefore, you not only get a safety blanket but also get a profitable return on the investments.
Life insurance refers to a service that one purchases with the motive to guard themselves or their family against any unfortunate events like loss of life, property, or health. In contrast, investment is the amount of money or asset that you give to a third party in exchange for the return as a profit at an agreed point in the future. There are many types of investment plans that you can buy according to your preference. The investment will take care of your now and immediate future, whereas insurance will provide cover to you and your loved ones in the long run. You can choose whether to buy an insurance policy or invest your money for future gains. However, it is advisable to buy an investment insurance policy which is a mix of insurance and investment, in order to enjoy the benefits of both the policies.
Insurance investment plans are two-for-one investment plans. Under this plan, when you pay your insurance premium, a part of it gets invested after a certain period. With an increase in the value of your premium, your investment also grows. This results in ROI that the policyholder can access before receiving the insurance payout during the uncertain incidence. The actual insurance amount will remain untouched. If by a good chance of fate, you never need to receive a payout from your insurance policy, you get both your insurance premium returned as well as the money you’ve received from your investment.
By opting for an insurance investment plan, you not only safeguard your loved ones but also create a reliable financial cushion for yourself.
1. Financial Protection
Insurance investment plans provide a safety net for you and your family, ensuring financial stability even in uncertain times. These plans help secure your loved ones’ future, offering peace of mind and long-term security.
2. Dual Benefit of Investment and Insurance
Investment insurance plans combine life coverage with investment opportunities. While ensuring financial protection, they also allow your money to grow, helping you meet future financial goals efficiently.
3. Funds for Emergencies and Lifestyle Goals
With an investment insurance plan, you receive both life cover and potential returns. These returns can be used to fulfill financial aspirations like buying a home, funding education, or traveling. Additionally, you can set aside funds for emergencies, ensuring you are financially prepared for any unexpected expenses.
4. Systematic Withdrawals for a Regular Income
Certain insurance investment plans allow systematic withdrawals, enabling you to create a steady income stream. This feature can be especially beneficial for those seeking financial independence post-retirement.
5. Tax Benefits
Investment insurance plans offer tax advantages under the Income Tax Act, 1961. Premiums paid under the policy qualify for deductions of up to ₹1.5 lakh under Section 80C, while the payouts may be tax-free under Section 10(10D), subject to conditions. This makes them a tax-efficient financial tool.
Investment in insurance unique features that make it a smart choice for long-term financial planning.
1. Insurance Cover for Financial Security
An insurance investment plan provides a life cover that ensures your loved ones remain financially secure in case of any unforeseen circumstances. The policy offers fixed-term coverage with a substantial claim amount, helping your family maintain financial stability.
2. Wealth Creation Over the Long Term
With an investment insurance plan, your money is invested in market-linked funds, allowing it to grow over time. These plans are ideal for long-term financial goals, such as your child's education, retirement savings, or buying a home.
3. Flexible Premium Payment Options
Insurance investment plans offer flexibility in premium payments, allowing you to choose between monthly, quarterly, semi-annual, or annual payment options based on your financial preferences.
4. Unlimited Fund Switching
Some investment insurance plans allow you to switch between different funds as per market conditions. This feature helps you maximize returns while aligning investments with your risk appetite and financial goals.
Additional Protection Through Riders
To enhance financial coverage, insurance investment plans offer optional riders such as accidental death, critical illness, or disability cover. These add-ons provide extra security and ensure comprehensive protection.
There are numerous benefits associated with taking an investment insurance plan. Some of them are listed below:
The higher the amount of premium, the higher will be the returns. You get the option to pay more than the average premium. When you pay more than the minimum premium amount, the excess amount will get added to your investment, which helps your fund grow faster.
Having an investment on top of your insurance will help you to earn back some of your investment that you can spend or invest on anything you want. It is advisable to re-invest your ROI to stay on track. With the extra income, you can pay for family emergencies that are not covered in your insurance policies or simply for leisure purposes.
Unlike traditional insurance policies, investment insurance helps to maximize your earning potential by linking some of your investments to stocks and bonds, which can result in more enormous funds.
The investments depend on the state of the market and can result in a loss. The ROI may change depending upon the value of your premiums. However, this will not affect your insurance policy and will not be compromised by the results of your investment.
An investment insurance plan is a smart financial tool designed for individuals with diverse financial needs. If you fall into any of the following categories, you should consider investing in one:
1. Individuals Seeking Financial Security
If you want the dual advantage of insurance investment, these plans are an excellent choice. They provide both financial security and investment growth, ensuring long-term stability for you and your loved ones.
2. Young Parents with Future Goals
For young parents, securing a child’s education, marriage, and overall future is a priority. An investment insurance plan helps you accumulate wealth while providing a financial safety net, ensuring your child’s well-being regardless of life’s uncertainties.
3. Retirement Planners
Planning for retirement requires disciplined savings and risk management. An insurance investment plan allows you to build a retirement corpus while also securing your family’s financial future, giving you peace of mind during your golden years.4. Tax-Conscious Investors
If you're looking to save on taxes while growing your wealth, an investment insurance plan is a great option. These plans offer tax benefits under the Income Tax Act, 1961, helping you maximize your savings while securing your financial future.
Now that you understand the difference between investment and insurance, and what is investment insurance, it's essential to evaluate your financial goals and choose a plan that aligns with your needs. Take the time to research different options, compare benefits, and make an informed decision to secure both your future and your wealth effectively.
1
Traditional life insurance primarily offers financial protection to your loved ones in case of an unfortunate event. In contrast, investment insurance combines insurance coverage with wealth creation. With an insurance investment plan, a portion of your premium goes towards life coverage, while the rest is invested in funds that generate returns over time.
2
An investment insurance plan provides dual benefits: financial security and long-term wealth accumulation. It ensures that your loved ones are financially protected while also helping you grow your savings. Additionally, these plans offer tax benefits, flexible payout options, and the ability to switch between funds based on market conditions.
3
Anyone looking for a balanced approach to security and wealth creation should opt for an insurance investment plan. It is ideal for young professionals, parents planning for their child's future, individuals building a retirement fund, and investors seeking tax-efficient savings options.
4
There are several types of investment insurance plans, including Unit Linked Insurance Plans (ULIPs), Endowment Plans, and Money-Back Policies. ULIPs offer market-linked returns, endowment plans provide a lump sum at maturity, and money-back policies offer periodic payouts. Each type caters to different financial goals and risk appetites.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
Features
Ref. No. KLI/22-23/E-BB/2435
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
Get a Term plan that offers high coverage at low, affordable premiums
