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

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. 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 Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

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

What is the Death Claim Payable in the Case of ULIP?
  • 28th Mar 2022 |
  • 656

Our loved ones’ well-being is always a top concern, and we do everything we can to guarantee that our family has the best of everything. Buying a life insurance policy is one of the best ways of ensuring that our loved ones are secured even when we are no longer around with them physically. What if we told you that you could acquire a one-of-a-kind financial instrument that allows you to get life insurance and good investment returns in it?  If you nodded yes, you are thinking about buying ULIPs.

ULIPs combine life insurance and investing into one package. This financial instrument uses a portion of the ULIP premium paid to provide life insurance coverage, while the remainder is used to build an investing corpus. The ULIP plans returns depend on the investment tools and market performance. ULIPs have a mandatory five-year lock-in duration. They provide payouts in the event of maturity or the insured’s unfortunate death. Although a reasonable concern is how is the death claim payable in this hybrid financial investment tool calculated?

Understand All About Death Claim in ULIP

In ULIPs, the death benefit is the payment made to the nominee if you, the insured pass away during the policy period. The family gets the sum assured or the fund value, whichever is larger if the policyholder dies during the insurance period. Also, if the fund underperforms and its value falls short of the amount guaranteed, the sum guaranteed is owed.

Mortality Charges in ULIP

When you purchase ULIP, the insurer charges a mortality fee to provide insurance protection and other expenditures in the event of the policyholder’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, and the fee should ideally decrease as the fund value increases throughout the policy period.

Process to Apply for Death Claim

Step 1: Notification

In the case that the policyholder passes away during the policy’s term, the nominee must formally notify the insurance provider about the same.

Step 2: Claim Form Submission

For the claim request to be formally registered, a claim form must be filled out and sent to the insurance provider together with the relevant documentation and information like the cause of death and information of the claimant.

Step 3: Document Submission

The claimant must produce the original policy document, photocopies of the death certificate, the claimant’s picture ID and address proof, a police FIR and post-mortem report in case of an accidental death, or a certificate and medical documentation from the doctor/hospital if death is due to sickness.

Step 4: Claim Settlement

After all the necessary documents are submitted by the claimant, then according to IRDAI regulations, the insurer has 15 days to seek clarification and 30 days to settle a claim after receiving all papers. If an investigation is necessary, the processes shall be finished within 180 days.

To summarise, digitisation has made the process of getting your hands on ULIPs much easier. To choose the best ULIP, look at online ULIP plans in India and check out fund performance comparisons to find the one that meets your needs!

Kotak e-Invest

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


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

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


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

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

Which Is Better: ULIP or SIP?

Saving for approaching retirement with retirement insurance

What are the Maturity Benefits in a ULIP Plan: Fund Value Sum Assured or Only Fund Value?

Are Annuities Great For Early Retirement?

यूलिप के फायदे (Benefits of ULIP in Hindi)

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

What Happens to ULIP Premiums Paid if the Market Crashes?

Benefits of Early Retirement Plans

The Significance of Number 8,000 in Retirement Planning

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

Why Should You Invest in NPS?

What tax benefits are there on saving for retirement?

Can I Surrender My ULIP Policy after 2 Years?

What is the Minimum Lock-in Period for ULIP?

Importance of Retirement Planning

Know Why You Should Stay Invested in Your ULIP Plan

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

What are the Benefits of ULIP - Explained

Retirement: A New Start to Life!

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

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

5 Reasons to Buy ULIP for a Secured Financial Future

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

What is ULIP and Its Benefits?

Which Pension Plan Suits You best?

Do Pension Plans Allow any Death Benefits?

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

Types of Pension Plans for Your Retirement

Different Types of ULIP Investments in India

How To Keep Your Retirement Accounts from Being Hacked?

How should one decide on fund allocation within NPS?

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

How To Invest Money In ULIP?

What are the Advantages and Disadvantages of ULIP?

Importance of financial Planning for Retirement

Why are ULIPs One of the Best Tax Saving Instruments?

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

What are the things to consider before buying ULIPs?

Is ULIP A Good Investment Option?

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

What is the difference between Life Insurance and ULIP?

Long Term Investment Guide for Your Retirement

How Has NPS Performed in Comparison with Other Instruments?

Top 6 Flexible Benefits That ULIPs Offer

How Safe is it to Invest in ULIP plans?

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

What is Lock-In Period in ULIPs?

How Does ULIP Work in India?

Calculating a Retirement Corpus that can Support Your Lifestyle

What are the Instruments Available for Building a Retirement Corpus?

NPS for Housewife

What is Fund Value in ULIP?

Un-Retirement - Are You Ready For It?

What are the Differences Between ELSS ULIP and Mutual Funds?

A Quick Guide to Retirement Plans

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

Retirement Planning Guide for Working Men and Women

What are the Uses of ULIP?

At What Age Should You Start Your Retirement Planning?

8 Charges in ULIP That You Must Know

What Are Retirement Pension Plans?

How can NPS help you save tax?

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

Meaning of Sum Assured in a ULIP

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

How Can I Achieve My Wealth Goal with ULIP Investment?

Why Are ULIPs Called Flexible Investments?

What are ULIPs and their Types?

Why You Should Invest In An Annuity Plan?

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

Types of Retirement Plans

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

Retirement planning with a systematic life insurance plan

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

How Is ULIP Different from Other Life Insurance Plans? Where Can I Invest - ELSS, ULIP, or PPF?

Give Your Retirement Savings A Booster-Shot with Annuities

5 Common ULIP Myths That You Should Stop Believing

How to Choose the Best ULIP Plans to Invest in 2022?

Terminologies You Should Understand About Retirement Plans

What is an Annuity Plan and How Does Annuity Plan Works | Kotak Life

Inflation: A Key Factor to Consider into Retirement Planning

What is a Retirement Plan - What are its Features?

How To Choose The Right Pension Plan?

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

What Are Mortality Charges In ULIP?

यूलिप के 8 शुल्क

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

Advantages of Pension Schemes and Retirement Plans

How has ULIP Grown Over the Last 3 years?

Is ULIP Better Than FD?

How Does NPS Work?

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

Retirement Planning for Millennials

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

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

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

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

Tips to invest your voluntary retirement scheme money

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

Pros and Cons of Retirement Annuities

Invest for your second innings with a guaranteed savings plan

How To Make Most of Your Money After Retirement?

Understanding Annuity Plans

Benefits Of Retirement & How Investments Can Help You Enjoy Them

Is ULIP a Good Option for People Above 60?

Top 4 Mistakes To Avoid While Planning For Your Retirement

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

Is ULIP a Complex Financial Product?

Top 6 Reasons Why You Should Get A Pension Plan

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

Save Early to Keep Living Your Dreams Post Retirement

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

Why Should I Invest in ULIP?

ULIP Plan or Traditional Insurance Plans - Which is better?

5 Steps to Gift a Smart Retirement Plan to Your Parents

Different Types of Retirement Schemes

7 Secrets that can Make Your Post-Retirement Phase Prosperous

Benefits of Early Retirement Planning in India

What is NAV in ULIP, and How is it calculated?

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

Retirement Planning at 50? You Are Still Good to Go

How to Win at Retirement Savings?

A Beginner's Guide to Understanding 401k Retirement Plan

Top Investment Options for Retirement Planning

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

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

Which are the Best ULIP Plans in India for Children?

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

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

What are the Rules for Exit From NPS?

Top 4 Myths About ULIP Investments You Should Know

How Does Pension Plans in India Works?

Is the ULIP Policy Surrender Value Taxble?

Demystifying the Retirement Planning Process

How Do Annuity Options Work In NPS

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

Is It Worth Buying ULIP Plans For 10 Years?

5 Notable Investment Options for Retirees

Why ULIP Should Be a Part of Your Investment Portfolio?

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

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

Do ULIPs Give Good Returns On Investments?

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

How is ULIP NAV calculated? How is the return calculated in ULIP?

What Are Superannuation Benefits?

Can NRIs Invest in ULIP Plans Offered in India?

ELSS vs ULIP: Which is a Better Investment?

Ten Signs That You're Ready to Retire

Managing Your Retirement Income with an insured retirement plan

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

FAQs on Taxation of ULIPs

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

How Much Corpus Does One Need for Retirement?

What is Partial Withdrawal in ULIPs?

What are the Charges Levied on ULIP?