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

Buy a life insurance plan in a few clicks

Now you can buy life insurance plans completely online right here.

  • Icon for Kotak Preferred e-Term Plan

    Kotak e-Term Plan

    Kotak e-Term Plan is a pure term plan that provides a high level of protection to your loved ones in your absence.

  • Kotak E-Invest Plan

    Kotak e-Invest is a comprehensive Unit Linked Life Insurance Plan that can be customized as per your goals and needs - be it protection; investment; financial security for child or retirement planning.

  • Icon for Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan

    Kotak Guaranteed Savings Plan is a savings and protection plan that helps you achieve long-term financial goals and insurance cover against any eventuality.

  • Icon for Kotak Preferred e-Term Plan

    Kotak Lifetime Income Plan

    Kotak Lifetime Income Plan gives you the assurance of your income continuing throughout your life and in your absence throughout the lifetime of your spouse!

  • Icon for Kotak Preferred e-Term Plan

    Kotak Health Shield

    The Kotak Health Shield Plan helps secure your finances in times of sudden medical expenses related to illness such as Cardiac, Liver, Neuro and Cancer (all early and major stages of illness /conditions of Cancer); along with offering protection for Personal Accident - in case of accidental death or disability.

Close

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.

Back

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

View Plans
  • 28th Mar 2022
  • 181

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

ULIP policies are quite straightforward insurance policies. They offer many great features to investors. The best part about ULIPs is that you get the benefit of both insurance and investment in a single product. However, since the policy is comparatively new and serves the modern investment approach, people have a lot of doubts about it. However, ULIPs allow you to stay protected and manage financial growth by investing in different ULIP funds as per market trends.

You get benefits when a ULIP policy matures. For example, suppose the policyholder has paid all the premiums of the ULIP on time, and the policy has completed its full tenure. In that case, the maturity benefits will be paid to the policyholder itself or the nominee as per the policy guidelines

At the maturity of the ULIP policy, a policyholder receives a total fund value based on the NAV of the policy on the day of disbursement, along with other bonuses and loyalty benefits, if any, as per the policy.

What are Maturity Proceeds in ULIPs?

Maturity proceeds in ULIPs are the total amount that the policyholder receives after the ULIP policy completes its maturity period as chosen by the policyholder.

The insurance company issues a letter to the policyholder containing all the procedures and forms to be filled out for claiming maturity benefits and the total ULIP maturity amount. Policyholders must ensure that all the claims related to the maturity proceeds in ULIPs are settled on or before the due date. However, they can further decide to keep the amount invested, subject to the guidelines of the policy and the insurance company.

What Happens to ULIP After Maturity?

Once ULIP policy has completed its maturity tenure, the sum insured and invested is paid to the policyholder/nominee (in case of demise of the policyholder). However, for claiming maturity benefits of ULIPs, the investor or the policyholder must ensure that all the documents are correct and the premiums are paid on time.

Claiming Maturity Benefits of ULIPs

Claiming maturity benefits of ULIPs is not rocket science. You just have to follow the policy guidelines, fill out some forms, and that’s it. Here is a brief explanation of how you can claim the maturity benefits of ULIP policies:

Discharge Form

As soon as your ULIP policy’s maturity nears its completion, the insurance company issues all the documents required for claiming maturity benefits and all ULIP returns. The discharge form is one of these documents. It is also available on the insurance company’s website. While filling out this form, the policyholder needs to provide some information for identification purposes. The information asked may include details such as the policy number, the policyholder/client ID, the policyholder’s name, the date of maturity and the ULIP plan type, etc.

Documents

You will also need to provide some documents like the paperwork related to the original policy, bank details, and KYC, along with the discharge form and some valid identifications.

Submission

Once you have all these forms and documents in place, you need to submit all these to the insurance company before the due date.

Important Things to Note

  • The discharge form needs to be signed by the policyholder/nominee and at least one witness. In the case of a thumb impression, getting it attested is required
  • The discharge form must be affixed by a revenue stamp of ₹1 denomination.

In conclusion, you must understand that to get the best ULIP returns; the policyholder must do his research and go through a proper ULIP plan comparison. Most experts suggest a thorough ULIP plan comparison via various online tools available. This is to help the investor understand his investment needs and know the different types of ULIP plans available in the market.

- A Consumer Education Initiative series by Kotak Life

Also read

  • NPS for Housewife

    NPS is the most popular pension scheme in India. National Pension System for housewife ensures that your spouse has a stable income and tax-free incom...

    Read more
  • Why are ULIPs one of the best tax saving instruments?

    Tax Benefits on ULIP Plans - Know ULIP tax benefits and various ULIP products offered by Kotak Life Insurance here in this article. Visit Kotak Life t...

    Read more
    • 28th Feb 2022
    • 638

    What are the Advantages and Disadvantages of ULIP?

    ULIPs are insurance types that combine investing & insurance into one package. Read more to know about the advantages & disadvantages of the ULIP.

    Read more

Related Plans

  • Kotak Credit Term Group Plan

    Kotak Credit Term Group Plan

    Kotak Credit Term Group Plan provides life cover to a group of borrowers of credit institutions where the life assured is the borrower and the credit ...

    Know more
  • Kotak Gratuity Group Plan

    Kotak Gratuity Group Plan

    Kotak Gratuity Group Plan is a Unit-linked group gratuity plan that helps you fund for the gratuity obligation systematically & effectively and releas...

    Know more
  • Kotak Assured Income Accelerator

    Kotak Assured Income Accelerator

    Kotak Assured Income Accelerator ensures that you get Guaranteed Income every year on the same amount of savings and that the Guaranteed Income increa...

    Know more
  • Kotak Fortune Maximiser

    Kotak Fortune Maximiser

    Kotak Fortune Maximiser is a limited pay participating endowment plan, which can be customized as per your requirement to help you achieve your life g...

    Know more