Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

Top 4 Myths About ULIP Investments You Should Know

Like any investment schemes, even ULIPs have myths associated with them. Here are 4 ULIP myths you should know for better investment opportunity.

  • Apr 14, 2022

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.

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure


  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521


- A Consumer Education Initiative series by Kotak Life

Similar Articles

NPS for Housewife

How Does NPS Work?

How Can ULIPs Help You Plan for Your Child's Future?

What is the Difference Between EPF, VPF, and PPF? What are Their Tax Benefits?

What are the Differences Between ELSS ULIP and Mutual Funds?

EPF Grievance Management: All You Need to Know

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

How Quickly is Fund Switch Effected in ULIPs? Is it Done the Same Day or After a Particular Number of Days?

Top Investment Options for Retirement Planning

Calculating a Retirement Corpus that can Support Your Lifestyle

What are the Charges Levied on ULIP?

Why You Should Invest In An Annuity Plan?

At What Age Should You Start Your Retirement Planning?

ULIP Tax Benefits: यहां निवेश करने पर मिलते हैं 5 बड़े फायदे

What is an Annuity Plan, and How Does Annuity Plan Work?

What are the Chances of Losing all my Money in ULIP and How Much Return Should I Expect?

Is it Advisable to Withdraw the ULIP Insurance Policy After 5 Years?

Saving for approaching retirement with retirement insurance

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

5 Reasons to Buy ULIP for a Secured Financial Future

What are the Rules for Exit From NPS?

Types of Annuity Plan | Annuity Definition - Meaning & Key Benefits

Retirement Planning Guide: These 5 Steps Will Help You Towards a Safe, Secure and Fun Retirement

What are the Benefits of ULIP - Explained

What is the Death Claim Payable in the Case of ULIP?

What Happens to ULIP Premiums Paid if the Market Crashes?

Know Why You Should Stay Invested in Your ULIP Plan

What To Do With Your Retirement Accounts During An Employment Lapse?

What is Fund Value in ULIP?

Is It Worth Buying ULIP Plans For 10 Years?

Worried About Running Out of Money in Retirement? 4 Tips to Avoid This Crisis

5 Notable Investment Options for Retirees

Top 6 Flexible Benefits That ULIPs Offer

FAQs on Taxation of ULIPs

How Can I Achieve My Wealth Goal with ULIP Investment?

Benefits of Early Retirement Planning in India

5 Steps to Gift a Smart Retirement Plan to Your Parents

What is the Estimated Return Percentage on ULIP? Do Investors Get Compound Interest?

What is Partial Withdrawal in ULIPs?

Different Types of ULIP Investments in India

Getting Close to Retirement? Six Key Retirement Planning Tips That Can Help You Retire

A Beginner's Guide to Understanding 401k Retirement Plan

Retirement: A New Start to Life!

Which Is Better: ULIP or SIP?

How To Make Most of Your Money After Retirement?

6 Signs That You Are Not Financially Ready For An Early Retirement

Terminologies You Should Understand About Retirement Plans

10 Steps to Figure Out How Much Money You Will Need For Your Post Retirement Plans

What is a Retirement Plan - What are its Features?

Is it Suggestible to Take a ULIP Plan Linked with a Term Plan?

How Do Annuity Options Work In NPS

ULIPs or Pension Plans – Which is a Better Retirement Plan?

Is ULIP a Good Option for People Above 60?

What is Premium Redirection in ULIPs Plans | ULIP Insurance Plans | Kotak Life Insurance

Difference Between Unit-Linked Insurance Plans and Non-Linked Plans

What are Fixed Maturity Plans and Why Should I Invest in Them?

How Much Corpus Does One Need for Retirement?

Single Premium ULIP or a PPF - Which One is Better?

A Quick Guide to Retirement Plans

How To Choose The Right Pension Plan?

7 Secrets that can Make Your Post-Retirement Phase Prosperous

Why Should You start Retirement Planning as soon as you start a job?

5 Reasons Why ULIP Plans are One of The Best Retirement Planning Instruments

Importance of financial Planning for Retirement

What are the Instruments Available for Building a Retirement Corpus?

Top 6 Reasons Why You Should Get A Pension Plan

Are You Planning an Early Retirement? Here's Why Buying Annuity Plan Will Make Sense

How has ULIP Grown Over the Last 3 years?

What are the Uses of ULIP?

Who Gets the Benefit After the Maturity of ULIP: The Proposer or The Life Insured?

ULIP Plan or Traditional Insurance Plans - Which is better?

Un-Retirement - Are You Ready For It?

Are Annuities Great For Early Retirement?

Why ULIP Should Be a Part of Your Investment Portfolio?

10 Steps to Figure Out How Much Money You Will Need After You Retire

Inflation: A Key Factor to Consider into Retirement Planning

How To Calculate The Present Value And Future Value Of Annuities?

How to Win at Retirement Savings?

What are ULIPs and their Types?

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

How to Maximize Your Retirement Savings with a Pension Scheme in India

How to Build a Tax-Free Pension Income for Retirement?

Does Having Both ULIP Plan and Other Health Insurance Plan Make Sense?

Benefits of Early Retirement Plans

How Does Pension Plans in India Works?

What is the Minimum Lock-in Period for ULIP?

How should one decide on fund allocation within NPS?

Advantages of Pension Schemes and Retirement Plans

How To Keep Your Retirement Accounts from Being Hacked?

Can NRIs Invest in ULIP Plans Offered in India?

Which Pension Plan Suits You best?

Importance of Retirement Planning

Top 4 Mistakes To Avoid While Planning For Your Retirement

Pros and Cons of Retirement Annuities

Invest for your second innings with a guaranteed savings plan

What is a Defined Benefit Plan and How it Works?

How can NPS help you save tax?

यूलिप और उनके प्रकार क्या हैं?

5 Retirement Planning Tips for a Financially Controlled Post-Employment Life

Do ULIPs Give Good Returns On Investments?

Is ULIP a Complex Financial Product?

Long Term Investment Guide for Your Retirement

5 Common ULIP Myths That You Should Stop Believing

What Are Retirement Pension Plans?

Types of Retirement Plans

Understanding Annuity Plans

Demystifying the Retirement Planning Process

Looking for Ways to Earn Lifetime Income in Retirement? Here Are 6 of the Top Options

Retirement Planning Guide for Working Men and Women

ELSS vs ULIP: Which is a Better Investment?

Is ULIP Better Than FD?

Why Should You Invest in NPS?

What are the things to consider before buying ULIPs?

What is the difference between Life Insurance and ULIP?

Is it possible to live a financially independent life, even after you retire?

Annuity Plan | How to Choose the Right Annuity Plan | Kotak Life

Save Early to Keep Living Your Dreams Post Retirement

Retirement Planning at 50? You Are Still Good to Go

ULIP: Can You Surrender ULIPs or Withdraw Money from It?

What are the 4 Financial Phases of Retirement? How to Budget For Each One?

Retirement Planning for Millennials

Do Pension Plans Allow any Death Benefits?

Tips to invest your voluntary retirement scheme money

Retirement Planning: Use our Retirement Calculator to Plan Ahead

Here's What Retirement Would Look Like 30 Years From Now

Types of Pension Plans for Your Retirement

What Happens If I Stop Paying My ULIP Policy Premium After Paying the First Premium? Will I Still Get The Return?

What Are Mortality Charges In ULIP?

The Significance of Number 8,000 in Retirement Planning

What Are Superannuation Benefits?

Can I Surrender My ULIP Policy after 2 Years?

Different Types of Retirement Schemes

Retirement planning with a systematic life insurance plan

Give Your Retirement Savings A Booster-Shot with Annuities

यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

How Has NPS Performed in Comparison with Other Instruments?

How Does ULIP Work in India?

What is Lock-In Period in ULIPs?

Why Should Retirement Planning Be on Top of Your Priority List?

How Safe is it to Invest in ULIP plans?

Ten Signs That You're Ready to Retire

Meaning of Sum Assured in a ULIP

Benefits Of Retirement & How Investments Can Help You Enjoy Them

What tax benefits are there on saving for retirement?

Retirement Planning - How To Calculate Your Retirement Premium in India?

Retirement and Pension Plans in India- What are Your Options?

Is ULIP A Good Investment Option?