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 the minimum and maximum investment in ULIP? Would the Whole Amount Insured in The ULIP Insurance be Invested in the Market?

What are the minimum and maximum investment in ULIP? Would the Whole Amount Insured in The ULIP Insurance be Invested in the Market?
  • 16th Mar 2022 |
  • 750

Investing in ULIPs, on one hand, is certainly a wise investment decision to make, but on the other hand, things can be tricky if you are not aware of all the details related to a ULIP policy. One of the most common and equally important query related to ULIP investment is the lower and upper limit of the ULIP plans.

What are the minimum and maximum investment in ULIP?

There is no specific answer to this question. The minimum and maximum amount that one can invest in ULIP policies vary from company to company. However, in general, the lower limit of premium for ULIP investment can be as low as a minimum sum of ₹1500 per month or ₹1,50,000 per year.

Lower Cap = ₹1500/month or ₹1,50,000/year

Also, generally, there is no cap on the premium amount for maximum investment, and the upper cap can be any amount that an individual is capable of paying as per their investment goals and plans.

Upper Cap = No Limit

Other than the upper and lower limits, while planning a ULIP investment strategy, you must note that most ULIP plans have a lock-in period of 5 years, and it is advised that the investors should pay the premiums for the complete term to make the maximum out of ULIP benefits. However, if you break out from the ULIP policy before the lock-in period, you will receive the fund value after certain deductions or surrender charges.

Taxability of ULIP

In the Annual Budget 2021, the Government of India made some amendments to the taxability of ULIP, to prevent its misuse. As per the recent amendments applicable from April 2021 under Section 112A of the Income Tax Act, any return from a ULIP investment where the premium is less than or equal to ₹2,50,000 per annum, is exempted from tax.

However, if the annual premium sum exceeds ₹2,50,000, then the returns are taxable under different provisions of the Income Tax Act related to ULIP. To help you determine the amount correctly, you should consider using a ULIP tax calculator. An ULIP tax calculator will help you in finding tax deductions on higher premiums.

Why to invest in ULIP?

Here’s why you should consider investing in a ULIP plan:

  • Dual benefit of investment and insurance
  • Triple E-benefit (Exempt-Exempt-Exempt). No tax levied for investment, proceeds, and withdrawal
  • Top-up advantage (add extra money)
  • Flexible switching options
  • Structured charges (pre-defined)

In addition, the new ULIP tax treatment has also increased the chance of keeping this investment tool free of scams. Thus, improving its quality and benefits.

So, if you are looking to make investment gains while having the ULIP benefits of insurance, you must be well aware of the taxability of ULIP and carefully read the document related to it, before investing higher amounts in it.

ULIP Benefits

Some of the major benefits that make ULIPs a lucrative investment product includes:

  • Flexibility
  • Transparency
  • Financial goal-based savings
  • Considerable tax benefits on investment
  • Liquidity options

Having understood a great deal about these policies, another concern that raises in most policyholder’s mind is: Would the whole amount insured in the ULIP insurance be invested in the market?

The one-word answer to this question is no! The whole amount insured in the ULIP policy will not be invested in the market. Generally, in the case of any insurance policy, the premium is divided into three different parts:

1.Pure life premium 2.Expenses 3.Amount left to be invested

In the case of ULIP, generally, 1 part is for insurance, while the other part is taken out for investment into the markets, based on the policy guidelines. So, understand the nitty-gritty, weigh pros and cons, and invest in the right plan that helps you achieve your financial goals.

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

Know How to Invest at Every Age for Larger Returns

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

Can I Extend the Tenure of My Term Insurance Plan?

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

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

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

How Not To Get Your Term Insurance Claim Rejected

5 Things To Consider While Buying Term Insurance Plan

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

Do Beneficiaries Pay Taxes on Term Insurance?

Insuring Protection Against Death With Death Insurance Rider

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

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

Is a Term Insurance Policy Portable?

Can I Get Term Insurance on Behalf of My Spouse?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

What Should You opt for - Limited or Premium Pay?

Term Insurance Calculator - Everythng You Need To Know

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

How Does Term Life Insurance Work? Learn the Benefits

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

Term Life Insurance Plan for Smokers vs Non-Smokers

Steps on How to Buy Term Insurance Online

Different Types of Premium in Term Insurance

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

What Is a Renewable Term Insurance Policy?

Planning For Children's Future

Tax Benefits of Term Insurance in India

What Happens if you Hide Facts in your Term Insurance?

9 Ways to Help Family Members in Financial Trouble

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

8 Things To Do After Buying Term Insurance

Why Premium Amount for Term Insurance is So Low?

Term Insurance Basics You Should Know

Top 3 Reasons Why You Should Buy A Term Plan Now

Cost of Term Insurance Likely to Increase Soon

How Much Cover Should I Take In A Term Plan?

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

Should You Buy a Term Plan After 40?

8 Benefits of Term Insurance You Should Know

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

Make Your Online Term Plan Your Familys Monthly Payout

4 Methods to Calculate How Much Term Insurance You Need

Understanding Term Insurance Riders

6 Reasons That Make Term Insurance a Must Buy

Term Plan with Spouse Cover

Advantages of Buying Term Insurance in Your 50s

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

4 Things To Expect From Your Term Insurance Plan in India

4 Reasons Why You Need Critical Illness Cover

Individual Life Insurance vs. Group Term Life Insurance

Why does every working woman need life insurance?

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

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

Term Plans are Definitely Cheaper than You Think!

Is ₹1 Crore Term Insurance Good Enough Cover?

Term Insurance with Critical Illness

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

How to Surrender Term Life Insurance When you have No Liabilities

Is Group Term Life Insurance Provided By Employer Sufficient?

Different Types of Protection Plans

6 Types of Death not covered in Term Insurance Plan

Importance of Term Insurance at Every Stage of Your Life

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

Why Buy Term Insurance Even at Rising Rates?

Should Youngsters, Working Couples Buy Term Insurance Plans?

Advantages & Disadvantages of Term Insurance in India

What are incremental term insurance plans?

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

Does Term Insurance Cover Accidental Death?

How to Identify Term Insurance According to Your Needs?

10-Year Term Life Insurance Policy - Explained in Detail

Which Death Type Does Your Term Plan Not Cover?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

How To Change The Nominee in Term Insurance?

Is Life Insurance Investment Worthy Enough

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

Increasing Term Insurance and Riders

Ensure Protection Against Death, Disease & Disability With Life Insurance

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

Busting Myths and Facts About Term Insurance Policies

How To Choose the Right Term Insurance Plan?

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

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

Why Term Insurance Is Better Than ULIP?

Can You Increase Your Term Insurance Cover?

Difference between Term Insurance and Life Insurance

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

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

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

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

All you need to Know about Term Insurance Plans for Housewives

Insuring Against Accidents with an Accidental Death Insurance Rider

Why Married People Should Buy Term Insurance Under MWP Act?

Term Insurance Age Limit – Term Plan for All Age Groups

Insuring Against Disability With Disability Insurance Rider

Is Term Life Insurance Plan an Investment or Expense?

What is Term Insurance - A Complete Guide

Is term Insurance Needed for People With No Dependents?

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

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

What Is the Correct Age to Buy Term Insurance?

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

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

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

Is There Any Tax Benefit on Term Insurance?

Insurance Policy for Housewife In India

Why Should New Parents Buy Term Life Insurance?

What are the Documents Required for Term Insurance Plan?

Planning For Son or Daughter's Wedding

5 Term Insurance Benefits for Single Women

Term Insurance: Smokers vs Non-Smokers

Can Term Insurance Plans Be Purchased As A Gift?

Choosing Riders for Insurance Plans

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

While Buying Term Insurance Compare Features, Not Just Premiums

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

Why Should You Buy Term Insurance in 2022?

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

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

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

How Does A Term Life Insurance Work in India?

Why 1 Cr Term Plan Is Necessary For Family?

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

What is a short term insurance policy?

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

Should You Have Multiple Term Life Insurance Policies?

Endowment Plans vs Term Plans: Understanding the difference

Comparing Term Plans – What Should You Look Out For

Buying A Term Insurance Plan? Take These Factors into Account

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

Term Insurance With Riders In India

5 Benefits of Early Retirement Planning

Insuring yourself against Ill Health with a Critical Illness Rider

What is Critical Illness Policy

Calculating Term Insurance Premium

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

What Are the Best Term Insurance Plans for Planning Retirement?

What All Documents Required For Term Insurance In India?

Why is it important to buy term insurance plan?

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

Tips to Choose the Right Term Period for Term Insurance Plan

Do You Need Term Insurance Cover After Retirement?

Why Buy Term Insurance Plan With a High Cover?

All About Term Insurance Inbuilt Coverage

How to Compare Term Insurance Online

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

Eligibility Criteria for Buying Term Insurance in India

Why should single women purchase term life insurance?

Can Senior Citizens Avail Term Insurance?

Protection for your family

Term Insurance Plans and Policies for Smokers

9 Most Frequently Asked Questions on Term Insurance

Everything About Claim Settlement Ratio for Term Insurance

How Much Term Insurance Do I Need

What is Insurance Premium - A Detailed Guide

8 Factors to consider before choosing a Critical Illness Insurance