Kotak e-Term Plan
Kotak e-Term Plan provides a high level of protection to your loved ones in your absence.
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.
Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs.
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.
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!
A Unit-Linked Life Insurance (ULIP) plan is a life insurance plan that helps policyholder to create wealth by investing their money in the financial market along with offering the security blanket against various uncertain life incidences. It is a combination of investment and life insurance to help you achieve long-term financial goals and provide your family security in case of your untimely demise. Under Section 80C of the Income Tax Act 1961, the ULIP premiums can also help you claim the deductions and offer you the benefits of being tax-free.
Understanding the plan better before making any decision will help you to make an informed decision for the future. Below mentioned ways will explain how to choose the best ULIP plan to invest in 2022
ULIP offers policyholder the advantage of life insurance cover along with wealth creation. However, to get the best out of it, you need to understand the key features of ULIP:
In case the policyholder is unsatisfied with their funds or in case of losses, they have the option to switch their funds to the ones that match their needs or are profitable for them.
The policyholder has the option to invest their future premiums in different funds of their choice other than their base fund.
The policyholder gets the option to withdraw a part of their money.
This option allows the policyholder to invest the surplus money either in one go or multiple times in their existing policy.
A ULIP plan allows the policyholder to invest their money in equity, debt or both. Investing in equity helps to offer long-term high growth potential, whereas debt helps preserve wealth. Based on the risk appetite and needs, the policyholder can choose to invest in different types of ULIP.
ULIPs offer policyholders to achieve their life goals and secure them and their families from any uncertain situations. They provide a lump sum amount called the Life Cover so that the policyholder’s loved ones can stay financially secure even after their demise. To increase your family security, you can increase the life cover amount.
Apart from offering the life cover, ULIP also helps you in wealth creation. In case you stay invested in ULIPs for a more extended period, the company even provides you with specific bonuses in the form of loyalty additions and wealth boosters to further help you to grow your wealth.
Under the Income Tax Act, 1961, you can save your hard-earned money from taxes and avail various benefits at different stages of your life insurance policy.
Under the Income Tax Act 1961, you receive tax benefits on your premium payments.
Under this stage, the debt-equity Switches are not liable to tax.
Under the third stage, you also receive tax-free maturity benefits that are subjected to conditions under Sec 10(10D)
ULIPs help the policyholder to meet protection as well as the investment need. However, both of these investments have some associated charges; therefore, it is essential to know the details of the costs before even investing in one. Some of the charges include:
In ULIPs, the charges are reduced in the long run, helping to increase wealth creation.
To choose the best ULIP, you should compare different plans and select the one that charges a minimal amount in the form of Premium Allocation, Policy Administration, Mortality, and Fund Management Charges.
Now that you have understood how to choose the best ulip plans, you can research and make an informed decision.