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

Why Are ULIPs Called Flexible Investments?

Why Are ULIPs Called Flexible Investments?
  • 28th Mar 2022 |
  • 2,238

The necessity to invest in beneficial monetary instruments is at the forefront of the change due to the ever-increasing financial requirements caused by rising inflation and a fast-changing global economic landscape.

In recent years, investing has gained a new level of popularity; the notion of investment is no longer limited to real estate but has expanded to include financial investment tools with the potential for high-profit returns.

As a result, you must invest in a financial instrument that allows you to shift your funds with simplicity while also providing excellent returns. ULIP insurance can help in this situation.

What is ULIP policy?

A ULIP is not an insurance plan or an investment plan; rather, it is a hybrid of the two. ULIP plan is one of the newest financial instruments available to investors. Unit-Linked Insurance Plans are insurance plans that provide insurance coverage while also producing profits through investment sources. In a manner similar to mutual funds, the insurance provider launches a new plan and encourages investors to participate. Thus, ULIP plans invest in stocks, commodities, and debt instruments, and ULIP fund performance depends on the capital market momentum.

Features that Make ULIP a Flexible Investment Option

  • Fund Switching Flexibility

Unit-linked insurance policies include the ability to move funds, giving the policyholder many options. As an investor, you have the option of investing in debt or equity funds or in a portfolio that includes both equity and debt funds. In addition, you can switch your assets from one fund to another under this policy, and ULIP interest rate depends on the market condition. Furthermore, these swaps may be for full or partial units, making them more relevant. During the policy years, you as the investor can swap between fund alternatives at any moment. The equity or debt exposure can range from zero to one hundred percent, with and without varying debt, cash, and securities combinations.

  • Life Cover Choice

You may determine the amount of insurance coverage you desire in a ULIP investment. The minimum Life Cover granted by most ULIPs is ten times your yearly premium sum. However, according to the plan and the insurance provider, you may be able to choose a Life Cover value of up to 40 times your yearly premium or more.

  • Partial Withdrawal Provision

Before the policy term concludes, you, as a policyholder, have the option of withdrawing a portion of your own earned fund values. This option is quite valuable since it may assist unexpected cover costs. However, it’s worth noting that the entire sum isn’t accessible for withdrawal, and this function is only available after the stipulated five-year lock-in time has passed.

  • Premium Payment Structure

The premium payment term, or PPT, is the period during which you must pay your premiums. ULIPs provide you with the option of paying your premium in a variety of ways. For example, you have the option of paying the premium monthly, quarterly, annually, or as a one-time payment.

  • ULIP Tax Benefits and Claims

Why are ULIPs called flexible investments?

Three key benefits come with the ULIP plan. First, under Section 80C and Section 10 (10D) of the Income Tax Act, 1961, premium payments, maturity benefits, and death benefits are all tax-free up to a certain sum.

Furthermore, most investments, notably death benefits, provide lump-sum payments. A ULIP, on the other hand, allows you to get your benefits in one lump amount or installments.

To summarise, the best ULIP plan to invest in is one that is aligned with your personal and financial goals for the future, not the one that gives the most flexibility or return. Therefore, before purchasing a ULIP policy, it is recommended that you perform comprehensive research and market analysis.

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

Is There Any Tax Benefit on Term Insurance?

9 Ways to Help Family Members in Financial Trouble

Planning For Son or Daughter's Wedding

Why should single women purchase term life insurance?

Key Differences Between Term Insurance, ULIPs, And Health Insurance

Term Insurance Plans and Policies for Smokers

4 Methods to Calculate How Much Term Insurance You Need

Importance of Term Insurance at Every Stage of Your Life

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

Individual Life Insurance vs. Group Term Life Insurance

What are incremental term insurance plans?

Planning For Children's Future

Why Buy Term Insurance Plan With a High Cover?

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

Tips to Choose the Right Term Period for Term Insurance Plan

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

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

How to Surrender Term Life Insurance When you have No Liabilities

What All Documents Required For Term Insurance In India?

Term Plans are Definitely Cheaper than You Think!

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

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

Do You Need Term Insurance Cover After Retirement?

Term Insurance Age Limit – Term Plan for All Age Groups

Should You Buy a Term Plan After 40?

What Are the Best Term Insurance Plans for Planning Retirement?

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

What is Critical Illness Policy

Why Should New Parents Buy Term Life Insurance?

Choosing Riders for Insurance Plans

Ensure Protection Against Death, Disease & Disability With Life Insurance

Insuring yourself against Ill Health with a Critical Illness Rider

Is a Term Insurance Policy Portable?

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

Does Term Insurance Cover Accidental Death?

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

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

How Much Term Insurance Do I Need

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

Which Death Type Does Your Term Plan Not Cover?

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

Busting Myths and Facts About Term Insurance Policies

How Does A Term Life Insurance Work in India?

Can I Get Term Insurance on Behalf of My Spouse?

Is Group Term Life Insurance Provided By Employer Sufficient?

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

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

Cost of Term Insurance Likely to Increase Soon

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

Term Insurance with Critical Illness

Buying A Term Insurance Plan? Take These Factors into Account

How Not To Get Your Term Insurance Claim Rejected

Comparing Term Plans – What Should You Look Out For

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

Is Term Life Insurance Plan an Investment or Expense?

Term Insurance: Smokers vs Non-Smokers

8 Factors to consider before choosing a Critical Illness Insurance

8 Benefits of Term Insurance You Should Know

Term Insurance Basics You Should Know

Everything About Claim Settlement Ratio for Term Insurance

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

Insuring Protection Against Death With Death Insurance Rider

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

Why Should You Buy Term Insurance in 2022?

Calculating Term Insurance Premium

Difference between Term Insurance and Life Insurance

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

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

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

Insuring Against Accidents with an Accidental Death Insurance Rider

Why does every working woman need life insurance?

6 Reasons That Make Term Insurance a Must Buy

Endowment Plans vs Term Plans: Understanding the difference

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

Insurance Policy for Housewife In India

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

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

Is ₹1 Crore Term Insurance Good Enough Cover?

5 Benefits of Early Retirement Planning

Why 1 Cr Term Plan Is Necessary For Family?

Make Your Online Term Plan Your Familys Monthly Payout

Why is it important to buy term insurance plan?

Advantages of Buying Term Insurance in Your 50s

Why Married People Should Buy Term Insurance Under MWP Act?

Advantages & Disadvantages of Term Insurance in India

Should You Have Multiple Term Life Insurance Policies?

Term Insurance Calculator - Everythng You Need To Know

Can Senior Citizens Avail Term Insurance?

Term Insurance With Riders In India

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

Term Life Insurance Plan for Smokers vs Non-Smokers

Top 3 Reasons Why You Should Buy A Term Plan Now

Insuring Against Disability With Disability Insurance Rider

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

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

Do Beneficiaries Pay Taxes on Term Insurance?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

5 Things To Consider While Buying Term Insurance Plan

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

Why Premium Amount for Term Insurance is So Low?

Different Types of Premium in Term Insurance

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

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

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

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

Can You Increase Your Term Insurance Cover?

Understanding Term Insurance Riders

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

How to Buy 1 Crore Life Insurance Policy Without Medical Test

How Does Term Life Insurance Work? Learn the Benefits

While Buying Term Insurance Compare Features, Not Just Premiums

Eligibility Criteria for Buying Term Insurance in India

10-Year Term Life Insurance Policy - Explained in Detail

What is Insurance Premium - A Detailed Guide

Why Term Insurance Is Better Than ULIP?

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

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

What are the Documents Required for Term Insurance Plan?

All About Term Insurance Inbuilt Coverage

How to Identify Term Insurance According to Your Needs?

Different Types of Protection Plans

4 Reasons Why You Need Critical Illness Cover

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

9 Most Frequently Asked Questions on Term Insurance

8 Things To Do After Buying Term Insurance

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

Tax Benefits of Term Insurance in India

Can Term Insurance Plans Be Purchased As A Gift?

Is term Insurance Needed for People With No Dependents?

What Is the Correct Age to Buy Term Insurance?

5 Term Insurance Benefits for Single Women

Know How to Invest at Every Age for Larger Returns

Steps on How to Buy Term Insurance Online

What Is a Renewable Term Insurance Policy?

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

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

Why Buy Term Insurance Even at Rising Rates?

How to Compare Term Insurance Online

What Happens if you Hide Facts in your Term Insurance?

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

What is a short term insurance policy?

Term Plan with Spouse Cover

4 Things To Expect From Your Term Insurance Plan in India

What is Term Insurance - A Complete Guide

How To Choose the Right Term Insurance Plan?

How To Change The Nominee in Term Insurance?

Can I Extend the Tenure of My Term Insurance Plan?

What Should You opt for - Limited or Premium Pay?

Protection for your family

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

Increasing Term Insurance and Riders

Should Youngsters, Working Couples Buy Term Insurance Plans?

All you need to Know about Term Insurance Plans for Housewives

6 Types of Death not covered in Term Insurance Plan

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

Is Life Insurance Investment Worthy Enough

How Much Cover Should I Take In A Term Plan?