Kotak Life
Close

Buy a Life Insurance Plan in a few clicks

Close

Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and provides an insurance cover against any eventuality. Know more

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

Top 4 Myths About ULIP Investments You Should Know

 Top 4 Myths About ULIP Investments You Should Know
  • 14th Apr 2022 |
  • 3,830

One of the facts about investment is that it comes with risks involved because all of your focus is on saving money to secure your future at some point in life. Also, there are multiple investment options available for all investors today. These options are designed so that it caters to the investment and financial needs of all.

However, there is considerable misinformation related to these financial investment options. And ULIP, a popular investment option today, is also not spared of such misinformation. This non-factual misinformation that is not based on fact and reality about ULIP as a financial tool and its functionality are called ULIP Myth.

If you are willing to invest a huge sum at once, you can invest in Debt funds, while if you want to invest small amounts systematically over some time, you can opt for SIPs & ULIPs. But, as normal human behavior, once you have a good sum invested, you start worrying about it. This is where myths about investment tools come into play and haunt you.

This article will discuss some of the ULIP myths and bust them with the facts around them.

Top 4 ULIP Myths to be aware of

1. ULIPs are High-Risk Investment Plans.

This one is among the most common ULIP Myths. Many investors believe that investing in ULIP is a high-risk investment. Those who believe in this are less informed about ULIP’s policy guidelines and fund investment options.

ULIP is a highly diverse investment option that allows investors to invest according to their financial goals and risk-taking capabilities. ULIPs allow the investor to invest in various funds and at the same time also allow the ULIP policyholder to switch between the funds as per their requirement.

Top 4 Myths About ULIP Investments You Should Know

2. ULIPs are costly.

There is a ULIP myth that they are costly, and an investor or ULIP policyholder has to pay various charges while opting for ULIP.

This is the most inaccurate piece of information about ULIPs. ULIP policyholders are made well aware of the levied charges as per the policy guideline. Also, the charges levied on ULIPs are very transparent and upfront to the investors. Moreover, compared to other investment options, charges on ULIPs are comparably lesser.

3. ULIPs don’t allow liquidity

Contrary to what investors believe, ULIPs are one of the best investment options if you are looking for a modern investment option that is both long term, provides security, and allows you to stay in sync with the market growth by allowing you to invest in market funds.

In addition to this, ULIPs allow partial withdrawal. Meaning, a ULIP policyholder can withdraw a partial amount from their investment once the lock-in period of the ULIP policy is over. You must also read about ULIP policy surrender options, but it is highly advised to not opt for surrender before the lock-in period is over, as it can incur great losses.

4. ULIPs provide low returns.

The ULIP policies are one of the most modern investment options. If you check an average return on ULIPs every five years (lock-in period), you will note a satisfactory trend, and the trend gets better as you move towards long-term investment.

The more popular a plan becomes, the more are the chances of misinformation spreading. Thus it is highly advised that as an investor, you must always carefully read the policy documents and clarify even the smallest details and confusion with your insurance/investment agent. The right information is the key to the best investment.

Kotak e-Term Plan

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

5 Term Insurance Benefits for Single Women

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Different Types of Premium in Term Insurance

What Types of Deaths Are Covered in a Term Insurance Plan?

Why Term Insurance Is Important in times of COVID-19?

Is It Good To Buy A Term Insurance Plan In 2022?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Steps on How to Buy Term Insurance Online

While Buying Term Insurance Compare Features, Not Just Premiums

How Much Cover Should I Take In A Term Plan?

How to Compare Term Insurance Online

How to Identify Term Insurance According to Your Needs?

Is Term Life Insurance Plan an Investment or Expense?

What Should You opt for - Limited or Premium Pay?

Which Death Type Does Your Term Plan Not Cover?

Comparing Term Plans – What Should You Look Out For

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Why does every working woman need life insurance?

Does Your Term Insurance Plan Cover Death Due to COVID-19?

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

What is a short term insurance policy?

What All Documents Required For Term Insurance In India?

Term Insurance: What Happens When You Don’t Pay Your Premiums?

What Is a Renewable Term Insurance Policy?

Endowment Plans vs Term Plans: Understanding the difference

Can You Increase Your Term Insurance Cover?

Why Term Insurance Is Better Than ULIP?

Eligibility Criteria for Buying Term Insurance in India

Tips to Choose the Right Term Period for Term Insurance Plan

How to Surrender Term Life Insurance When you have No Liabilities

Top 3 Reasons Why You Should Buy A Term Plan Now

What Are the Best Term Insurance Plans for Planning Retirement?

Term Insurance Plans and Policies for Smokers

Insuring Against Disability With Disability Insurance Rider

9 Ways to Help Family Members in Financial Trouble

Term Insurance With Riders In India

4 Methods to Calculate How Much Term Insurance You Need

Term Plans are Definitely Cheaper than You Think!

How Much Term Life Insurance Cover Do I Need in India?

What are incremental term insurance plans?

Planning For Son or Daughter's Wedding

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

Why Buy Term Insurance Even at Rising Rates?

Can I Make Changes to My Term Insurance Policy Post Purchase?

What Happens if you Hide Facts in your Term Insurance?

Advantages & Disadvantages of Term Insurance in India

Can Term Insurance Plans Be Purchased As A Gift?

How To Change The Nominee in Term Insurance?

Why should single women purchase term life insurance?

Why Should You Add a Rider to a Term Insurance Plan?

Why is it important to buy term insurance plan?

10-Year Term Life Insurance Policy - Explained in Detail

6 Reasons That Make Term Insurance a Must Buy

Planning For Children's Future

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Increasing Term Insurance and Riders

Gift Your Father A Term Insurance Plan This Father's Day

Different Types of Protection Plans

How to Ensure That Your Term Insurance Claims Are Never Rejected?

Is There Any Tax Benefit on Term Insurance?

Term Life Insurance Plan for Smokers vs Non-Smokers

Do Beneficiaries Pay Taxes on Term Insurance?

Is a Term Insurance Policy Portable?

Can Senior Citizens Avail Term Insurance?

Reasons You Need Term Insurance Plan as a Self-Employed Person

Why Should You Buy Term Insurance in 2022?

5 Things To Consider While Buying Term Insurance Plan

Busting Myths and Facts About Term Insurance Policies

Why Married People Should Buy Term Insurance Under MWP Act?

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Can I Buy Term Insurance for a COVID-19 Patient?

9 Most Frequently Asked Questions on Term Insurance

All you need to Know about Term Insurance Plans for Housewives

What is Critical Illness Policy

Protection for your family

Make Your Online Term Plan Your Familys Monthly Payout

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

4 Reasons Why You Need Critical Illness Cover

Advantages of Buying Term Insurance in Your 50s

Ensure Protection Against Death, Disease & Disability With Life Insurance

Insuring Against Accidents with an Accidental Death Insurance Rider

Tax Benefits of Term Insurance in India

Do I Need to Give a Medical Test for Term Insurance in India?

How Does A Term Life Insurance Work in India?

How Much Term Insurance Do I Need

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Cost of Term Insurance Likely to Increase Soon

Buying A Term Insurance Plan? Take These Factors into Account

What Should Be The Duration Of Your Term Plan in India?

Calculating Term Insurance Premium

Term Insurance Basics You Should Know

Understanding Term Insurance Riders

Know How to Invest at Every Age for Larger Returns

How Does Term Life Insurance Work? Learn the Benefits

How Not To Get Your Term Insurance Claim Rejected

Insuring Protection Against Death With Death Insurance Rider

Why Term Plan Should Be The First Step To Securing Your Future?

Why Premium Amount for Term Insurance is So Low?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Insuring yourself against Ill Health with a Critical Illness Rider

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

All About Term Insurance Inbuilt Coverage

Term Insurance with Critical Illness

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

What is Insurance Premium - A Detailed Guide

Do You Need Term Insurance Cover After Retirement?

Is Group Term Life Insurance Provided By Employer Sufficient?

Term Insurance Calculator - Everythng You Need To Know

Choosing Riders for Insurance Plans

What Is the Correct Age to Buy Term Insurance?

Should You Have Multiple Term Life Insurance Policies?

Individual Life Insurance vs. Group Term Life Insurance

Term Insurance: Smokers vs Non-Smokers

Term Plan with Spouse Cover

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Difference between Term Insurance and Life Insurance

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Can I Extend the Tenure of My Term Insurance Plan?

Can I Get Term Insurance on Behalf of My Spouse?

Is term Insurance Needed for People With No Dependents?

How To Choose the Right Term Insurance Plan?

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Everything About Claim Settlement Ratio for Term Insurance

Best Investment Plans for Children - Secure Your Child's Future

8 Benefits of Term Insurance You Should Know

Should Youngsters, Working Couples Buy Term Insurance Plans?

Importance of Term Insurance at Every Stage of Your Life

4 Things To Expect From Your Term Insurance Plan in India

What is Term Insurance - A Complete Guide

Is ₹1 Crore Term Insurance Good Enough Cover?

Should You Buy a Term Plan After 40?

Term Insurance – Why You Must Include In Your Financial Planning?

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

How To Calculate The Amount Of Term Life Insurance You Need?

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Why 1 Cr Term Plan Is Necessary For Family?

Why Should New Parents Buy Term Life Insurance?

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

Online vs Offline Term Insurance: Which Is The Better Option To Buy

Does Term Insurance Cover Accidental Death?

How To Choose the Right Sum Assured Under a Term Plan?

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

6 Types of Death not covered in Term Insurance Plan

Why Buy Term Insurance Plan With a High Cover?

Term Insurance Age Limit – Term Plan for All Age Groups

5 Reasons to Buy Term Insurance When You are in Your 30s

5 Benefits of Early Retirement Planning

8 Factors to consider before choosing a Critical Illness Insurance

What are the Documents Required for Term Insurance Plan?

Insurance Policy for Housewife In India

Why Should You Not Take A Term Plan Without Medical Test in India?

What Are Insurance Riders and How to Choose Them in a Term Plan?

8 Things To Do After Buying Term Insurance

Make Your Online Term Plan Your Family's Monthly Pay Cheque

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

Is Life Insurance Investment Worthy Enough