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

How Can I Achieve My Wealth Goal with ULIP Investment?

How Can I Achieve My Wealth Goal with ULIP Investment?
  • 25th Mar 2022 |
  • 215

​Making a plan for your life goals is empowering; it is a part of life that drives us to keep working hard and taking steps toward our dreams.

Since we place such a high value on personal objectives, it’s natural to wonder about meeting financial goals in your life. Your wealth goals must alter as you go in life, whether you are just starting or an experienced investor.

Keeping up to speed with financial instruments can be the first step in meeting your financial goals. ULIP can be one of the versatile instruments that can help you achieve your financial goals over long-term.

ULIP Plan Meaning

ULIP stands for Unit Linked Insurance Plan, a type of investment that offers two main advantages. The first is the benefit of investing in market-related funds such as equities and debt funds connected to the stock market. The second advantage is the protection provided by the insurance component.

The premium is invested in the funds you choose, providing you with the chance to earn market-linked returns over time as the ULIP plan returns.

4 Ways ULIPs Can Help Achieve Your Wealth Goals

  • Build the Virtue of Saving

ULIPs assist in fostering the habit of saving, which is critical in promoting wealth building. ULIP funds have a mandatory five-year lock-in period, even for short-term investments. This instils the habit of saving money from a young age. You will be charged specific ULIP plan fees if you remove the money before the timeframe.

  • Market Fund Allocation

Depending on your risk profile and wealth goals, you may choose to go with equities, debt, and balanced funds. If you want to develop a substantial portfolio, you can invest entirely in equity funds through ULIPs, which are known to provide high long-term returns. This will smooth out the effect of short market fluctuations on ULIP plan returns. When the market goes down, your investment will yield more units, and when the market is up, the same investment will yield fewer fund units. The cost levels out over time, giving you steady profits.

  • Compounding Advantages

Compounding refers to generating a return on an original investment that is more than the interest rate, in this case, on ULIP plan returns. Long-term investments are required to reap its rewards. It’s because, as the returns pile up and become the principal, the overall returns in subsequent years of investing grow exponentially. Therefore, if you seek a long-term investment opportunity, go no further and begin your search for the best ULIP funds in India.

  • ULIP Tax Benefits

ULIP investments might help you save taxes. Under Section 80C and Section 10 (10D) of the Indian Income Tax Act, 1961, the premiums and the ULIP plan returns are tax-free owing to ULIP tax benefits. However, with the announcement of the Budget 2021, the maturity profits of ULIPs will be taxed in certain circumstances. The maturity benefit will be classified as Long Term Capital Gains (LTCG) and taxed appropriately if the total premium paid throughout the year exceeds ₹2.5 lakhs.

To summaries, it is no secret that ULIPs sounds like a great option when it comes to selecting a financial tool to assist you with your wealth goals; therefore, it is recommended that you carefully consider your goals and choose from the best ULIP funds in India that prove to be the most beneficial for you.

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

9 Ways to Help Family Members in Financial Trouble

Why Married People Should Buy Term Insurance Under MWP Act?

What is a short term insurance policy?

Is Group Term Life Insurance Provided By Employer Sufficient?

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

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

How Much Term Insurance Do I Need

Can Senior Citizens Avail Term Insurance?

Protection for your family

Insurance Policy for Housewife In India

Term Insurance Plans and Policies for Smokers

Difference between Term Insurance and Life Insurance

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

Insuring Protection Against Death With Death Insurance Rider

What is Insurance Premium - A Detailed Guide

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

Why Should You Buy Term Insurance in 2022?

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

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

4 Methods to Calculate How Much Term Insurance You Need

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

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

How Does Term Life Insurance Work? Learn the Benefits

How Not To Get Your Term Insurance Claim Rejected

Should You Buy a Term Plan After 40?

Term Plans are Definitely Cheaper than You Think!

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

Eligibility Criteria for Buying Term Insurance in India

How To Change The Nominee in Term Insurance?

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

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

Should Youngsters, Working Couples Buy Term Insurance Plans?

Different Types of Premium in Term Insurance

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Endowment Plans vs Term Plans: Understanding the difference

6 Reasons That Make Term Insurance a Must Buy

Term Insurance With Riders In India

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

Make Your Online Term Plan Your Familys Monthly Payout

Why Term Insurance Is Better Than ULIP?

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

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

Steps on How to Buy Term Insurance Online

8 Benefits of Term Insurance You Should Know

Choosing Riders for Insurance Plans

Term Insurance Basics You Should Know

Tips to Choose the Right Term Period for Term Insurance Plan

All About Term Insurance Inbuilt Coverage

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

Term Life Insurance Plan for Smokers vs Non-Smokers

Why Should New Parents Buy Term Life Insurance?

What All Documents Required For Term Insurance In India?

5 Term Insurance Benefits for Single Women

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

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

Calculating Term Insurance Premium

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

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

What Are the Best Term Insurance Plans for Planning Retirement?

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

Why Buy Term Insurance Even at Rising Rates?

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

How to Buy 1 Crore Life Insurance Policy Without Medical Test

What Should You opt for - Limited or Premium Pay?

What are incremental term insurance plans?

5 Things To Consider While Buying Term Insurance Plan

Can I Get Term Insurance on Behalf of My Spouse?

Advantages & Disadvantages of Term Insurance in India

10-Year Term Life Insurance Policy - Explained in Detail

How to Compare Term Insurance Online

Does Term Insurance Cover Accidental Death?

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

Everything About Claim Settlement Ratio for Term Insurance

Is Term Life Insurance Plan an Investment or Expense?

5 Benefits of Early Retirement Planning

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

Advantages of Buying Term Insurance in Your 50s

How To Choose the Right Term Insurance Plan?

Why does every working woman need life insurance?

4 Reasons Why You Need Critical Illness Cover

Tax Benefits of Term Insurance in India

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

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

Which Death Type Does Your Term Plan Not Cover?

Term Plan with Spouse Cover

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

Term Insurance: Smokers vs Non-Smokers

What is Term Insurance - A Complete Guide

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

Comparing Term Plans – What Should You Look Out For

While Buying Term Insurance Compare Features, Not Just Premiums

Importance of Term Insurance at Every Stage of Your Life

Term Insurance Calculator - Everythng You Need To Know

Why Premium Amount for Term Insurance is So Low?

All you need to Know about Term Insurance Plans for Housewives

Why 1 Cr Term Plan Is Necessary For Family?

Is There Any Tax Benefit on Term Insurance?

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

What is Critical Illness Policy

What Is the Correct Age to Buy Term Insurance?

Insuring Against Accidents with an Accidental Death Insurance Rider

Should You Have Multiple Term Life Insurance Policies?

What Is a Renewable Term Insurance Policy?

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

Ensure Protection Against Death, Disease & Disability With Life Insurance

Do You Need Term Insurance Cover After Retirement?

Different Types of Protection Plans

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

9 Most Frequently Asked Questions on Term Insurance

Term Insurance with Critical Illness

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

Planning For Son or Daughter's Wedding

Cost of Term Insurance Likely to Increase Soon

Is term Insurance Needed for People With No Dependents?

Can Term Insurance Plans Be Purchased As A Gift?

How to Identify Term Insurance According to Your Needs?

Increasing Term Insurance and Riders

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

Can You Increase Your Term Insurance Cover?

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

How Much Cover Should I Take In A Term Plan?

Insuring Against Disability With Disability Insurance Rider

Understanding Term Insurance Riders

Term Insurance Age Limit – Term Plan for All Age Groups

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

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

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

How to Surrender Term Life Insurance When you have No Liabilities

Is a Term Insurance Policy Portable?

Busting Myths and Facts About Term Insurance Policies

How Does A Term Life Insurance Work in India?

What are the Documents Required for Term Insurance Plan?

8 Things To Do After Buying Term Insurance

Is ₹1 Crore Term Insurance Good Enough Cover?

Do Beneficiaries Pay Taxes on Term Insurance?

What Happens if you Hide Facts in your Term Insurance?

Why should single women purchase term life insurance?

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

Know How to Invest at Every Age for Larger Returns

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

Is Life Insurance Investment Worthy Enough

Top 3 Reasons Why You Should Buy A Term Plan Now

Why is it important to buy term insurance plan?

8 Factors to consider before choosing a Critical Illness Insurance

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

4 Things To Expect From Your Term Insurance Plan in India

Individual Life Insurance vs. Group Term Life Insurance

Planning For Children's Future

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

Can I Extend the Tenure of My Term Insurance Plan?

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

Insuring yourself against Ill Health with a Critical Illness Rider

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

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

Buying A Term Insurance Plan? Take These Factors into Account

Why Buy Term Insurance Plan With a High Cover?

6 Types of Death not covered in Term Insurance Plan