Kotak Life

Buy a Life Insurance Plan in a few clicks


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

What Are Mortality Charges In ULIP?

What Are Mortality Charges In ULIP?
  • 14th Apr 2022 |
  • 2,917

ULIP is a hybrid investment strategy that combines the advantages of insurance coverage with market-linked returns on your assets in a single package. It is subject to a five-year lock-in term. Experts generally advise that you keep your ULIP coverage for at least 10 -15 years to get the most out of your investment. All of these great attributes are enough to entice a big number of investors. However, there is a concept called mortality charges in ULIP that you should know of.

Everything About Mortality Charges in ULIP

When a person invests in ULIP, the insurer charges a mortality charge to pay insurance protection and other expenditures in the event of the insured’s death. It is generally taken along with other fees, before the policyholder’s money is invested.

The mortality fee is calculated using the amount at risk, which is equal to the sum assured minus the fund value. The sum at risk is the amount that the insurer must pay out of pocket if the insured dies. Further, the fee should ideally reduce as the fund value increases throughout the policy period.

Factors That Determine Mortality Charges in ULIP

ULIP mortality costs are determined by a variety of characteristics, including age, health condition and gender. A young person’s mortality costs are significantly lower than those spent by an older adult. Adult ULIPs, on the other hand, should not be mistaken with child ULIPs which have a higher death rate, especially in children aged 7 to 14.

Women get a lower mortality charge since it is based on gender. This fee in women’s ULIPs is determined over a three-year period. Simply put, a 35-year-old woman would have to pay the very same ULIP mortality fee as a 32-year-old male.

All You Need to Know About Calculating Mortality Charges in ULIP

In ULIP, the mortality charge is calculated as a percentage of the cover or the annual total at risk. As a result, the total at risk is the most important metric to consider when calculating the mortality charge in ULIP. The amount at risk varies depending on whether you have a Type I or Type II ULIP


As a death benefit, the nominee receives the greater of the guaranteed sum and the fund value. In this case, when the fund’s value grows, the amount at risk decreases.


The nominee receives the whole amount pledged as well as the fund value as a death benefit. As a result, the total at risk is equal to the guaranteed amount.

The mortality charges in ULIP are determined by parameters such as the country’s life expectancy ratio, the policyholder’s age, gender, financial condition, living area, and employment, in addition to the sum at risk. The formula for calculating the monthly mortality fee in ULIP is:

Mortality charge = [Mortality rate (for attained age) * Sum at Risk/1000] * 1/12

To summarise, after learning everything there is to know about mortality charges in ULIP and knowing how to calculate mortality charges in ULIP, it appears to be a great investment choice that provides you with two in one benefits.

Kotak e-Term Plan


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

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


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

How Not To Get Your Term Insurance Claim Rejected

Tips to Choose the Right Term Period for Term Insurance Plan

9 Ways to Help Family Members in Financial Trouble

Endowment Plans vs Term Plans: Understanding the difference

Why 1 Cr Term Plan Is Necessary For Family?

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

4 Methods to Calculate How Much Term Insurance You Need

What are incremental term insurance plans?

4 Reasons Why You Need Critical Illness Cover

Insuring Protection Against Death With Death Insurance Rider

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

8 Things To Do After Buying Term Insurance

Term Insurance With Riders In India

Insurance Policy for Housewife In India

Different Types of Protection Plans

Buying A Term Insurance Plan? Take These Factors into Account

What is Insurance Premium - A Detailed Guide

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

Different Types of Premium in Term Insurance

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

What are the Documents Required for Term Insurance Plan?

Is Term Life Insurance Plan an Investment or Expense?

Understanding Term Insurance Riders

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

How Does A Term Life Insurance Work in India?

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

Is ₹1 Crore Term Insurance Good Enough Cover?

Increasing Term Insurance and Riders

8 Benefits of Term Insurance You Should Know

How To Change The Nominee in Term Insurance?

How Much Term Insurance Do I Need

What Should You opt for - Limited or Premium Pay?

Steps on How to Buy Term Insurance Online

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

Can Senior Citizens Avail Term Insurance?

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

Insuring Against Accidents with an Accidental Death Insurance Rider

All About Term Insurance Inbuilt Coverage

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

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Which Death Type Does Your Term Plan Not Cover?

Busting Myths and Facts About Term Insurance Policies

Why Buy Term Insurance Even at Rising Rates?

Why is it important to buy term insurance plan?

Choosing Riders for Insurance Plans

How to Identify Term Insurance According to Your Needs?

Difference between Term Insurance and Life Insurance

All you need to Know about Term Insurance Plans for Housewives

Term Plans are Definitely Cheaper than You Think!

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

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

Insuring Against Disability With Disability Insurance Rider

While Buying Term Insurance Compare Features, Not Just Premiums

Term Life Insurance Plan for Smokers vs Non-Smokers

Is There Any Tax Benefit on Term Insurance?

Can I Get Term Insurance on Behalf of My Spouse?

Know How to Invest at Every Age for Larger Returns

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

8 Factors to consider before choosing a Critical Illness Insurance

9 Most Frequently Asked Questions on Term Insurance

Is Life Insurance Investment Worthy Enough

Why Term Insurance Is Better Than ULIP?

Advantages of Buying Term Insurance in Your 50s

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

Should Youngsters, Working Couples Buy Term Insurance Plans?

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

Term Insurance with Critical Illness

10-Year Term Life Insurance Policy - Explained in Detail

Eligibility Criteria for Buying Term Insurance in India

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

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

How Does Term Life Insurance Work? Learn the Benefits

Term Insurance Calculator - Everythng You Need To Know

How To Choose the Right Term Insurance Plan?

Why Premium Amount for Term Insurance is So Low?

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

5 Things To Consider While Buying Term Insurance Plan

Top 3 Reasons Why You Should Buy A Term Plan Now

Should You Have Multiple Term Life Insurance Policies?

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

Planning For Son or Daughter's Wedding

5 Benefits of Early Retirement Planning

Is term Insurance Needed for People With No Dependents?

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

Is Group Term Life Insurance Provided By Employer Sufficient?

How to Surrender Term Life Insurance When you have No Liabilities

Everything About Claim Settlement Ratio for Term Insurance

Do You Need Term Insurance Cover After Retirement?

6 Types of Death not covered in Term Insurance Plan

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

Importance of Term Insurance at Every Stage of Your Life

Can I Extend the Tenure of My Term Insurance Plan?

Term Insurance Plans and Policies for Smokers

What Is a Renewable Term Insurance Policy?

Tax Benefits of Term Insurance in India

What All Documents Required For Term Insurance In India?

Why Should You Buy Term Insurance in 2022?

Insuring yourself against Ill Health with a Critical Illness Rider

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

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

Calculating Term Insurance Premium

What is Term Insurance - A Complete Guide

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

What is a short term insurance policy?

Does Term Insurance Cover Accidental Death?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

Ensure Protection Against Death, Disease & Disability With Life Insurance

How to Compare Term Insurance Online

Cost of Term Insurance Likely to Increase Soon

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

Term Insurance Basics You Should Know

Planning For Children's Future

Should You Buy a Term Plan After 40?

5 Term Insurance Benefits for Single Women

Can You Increase Your Term Insurance Cover?

Is a Term Insurance Policy Portable?

What is Critical Illness Policy

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

Why should single women purchase term life insurance?

6 Reasons That Make Term Insurance a Must Buy

Individual Life Insurance vs. Group Term Life Insurance

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

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

How Much Cover Should I Take In A Term Plan?

What Is the Correct Age to Buy Term Insurance?

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

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

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

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

Why does every working woman need life insurance?

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

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

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

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

Term Plan with Spouse Cover

Do Beneficiaries Pay Taxes on Term Insurance?

Protection for your family

Advantages & Disadvantages of Term Insurance in India

Why Married People Should Buy Term Insurance Under MWP Act?

Comparing Term Plans – What Should You Look Out For

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

What Happens if you Hide Facts in your Term Insurance?

Why Should New Parents Buy Term Life Insurance?

4 Things To Expect From Your Term Insurance Plan in India

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

Term Insurance: Smokers vs Non-Smokers

What Are the Best Term Insurance Plans for Planning Retirement?

Term Insurance Age Limit – Term Plan for All Age Groups

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

Why Buy Term Insurance Plan With a High Cover?

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

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

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

Make Your Online Term Plan Your Familys Monthly Payout

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

Can Term Insurance Plans Be Purchased As A Gift?