Close
Close

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

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.

Why ULIP Should Be a Part of Your Investment Portfolio?

ULIP is an important invest for wealth creation and long-term investment. Know why ULIP should be a part of your investment portfolio in 2022.

  • Apr 15, 2022
  • 4,146 Views

Creating wealth and building assets is an important component of financial planning in your life. Designing a financial investment portfolio that delivers considerable returns to you over time in sync with your preferred timeline and goals is one of the most practical and successful methods to go about the whole process. When it comes to setting up your financial portfolio, it is no secret that mutual funds, insurance policies, and other financial instruments are popular choices. However, what if you had the opportunity to invest in an instrument that provides both investment and market related returns in one?

Introducing ULIP

In recent years, ULIPs have been one of the popular investment alternatives for many people. In this article, we’ll explain what ULIP is and why it is a must-have for diversifying and enhancing your investing strategy.

The Basics of ULIP Plan

A ULIP portfolio is unique in itself. It is an investment that is split into two halves and involves a five-year lock-in period. The first portion is used to secure life insurance coverage by paying a premium. The remaining money is invested in either equities or debt funds in order to gain financial rewards. You can increase or reduce the percentage of your ULIP assets in favor of your insurance cover or into your investment portfolio depending on your future financial goals. In either case, you will undoubtedly reap substantial financial gains.

Reasons to Add ULIP In Your Financial Portfolio

One Plan Dual Benefits

In India, ULIP is the only unique financial product that provides a dual advantage of investment and life insurance coverage through a single investment. As a result, you won’t need to purchase separate insurance and investment plans to protect your future.

Ease of Purchase and Renewal

Purchasing a new ULIP plan and renewing the old one takes very little time. In most occasions, you may buy your preferred plan online from the convenience of your own home. All you have to do is go to the insurance agency’s website, pick a plan, send in your KYC papers, and make the purchase. It is a really quick process.

Fund Switching and Flexibility

Depending on your risk tolerance, you can move your money between different funds such as equities, debt, and balanced funds. You can raise your investment part in equity funds if you wish to adopt a high-risk approach to your investing. You may, however, convert your assets into debt or balanced funds at any time if you wish to reduce your risks.

Top Up with Ease

As your life progresses and you make more money, you may redirect a portion of it to your investments. You can top up your investment at any moment with a premium top-up option making ULIPs an excellent addition to your portfolio.

The Magic of Compounding

The power of compounding is used by all effective ULIP plans to help you enhance your net worth. When you put your money in the stock market, it grows and provides rewards that can help you overcome inflation. In reality, the longer you invest, the higher your returns will be.

Tax Benefits

ULIPs come bearing tax benefits as well. Premiums paid for ULIP are exempted from tax under section 80C of the Income Tax Act, 1961, including the maturity benefit that is also tax free as per Section 10 (10D). To summarise, after looking over the reasons why you should include ULIPs in your portfolio in detail, there is no doubt that this scheme has nothing but benefits to offer. ULIPs are incredibly distinctive and valuable aside from being a great complement to your existing investing instruments.

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

Kotak e-Invest

Download Brochure

Features

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

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

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

5 Steps to Gift a Smart Retirement Plan to Your Parents

How can NPS help you save tax?

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

What is the Minimum Lock-in Period for ULIP?

Retirement: A New Start to Life!

Different Types of Retirement Schemes

Importance of financial Planning for Retirement

Retirement Planning: Use our Retirement Calculator to Plan Ahead

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

How Can I Achieve My Wealth Goal with ULIP Investment?

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

Un-Retirement - Are You Ready For It?

Top Investment Options for Retirement Planning

Different Types of ULIP Investments in India

Is ULIP A Good Investment Option?

Advantages of Pension Schemes and Retirement Plans

How should one decide on fund allocation within NPS?

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

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

Types of Retirement Plans

यूलिप और उनके प्रकार क्या हैं?

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

At What Age Should You Start Your Retirement Planning?

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

What are the Rules for Exit From NPS?

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

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

What is Fund Value in ULIP?

What is a Retirement Plan - What are its Features?

What are ULIPs and their Types?

Do Pension Plans Allow any Death Benefits?

What Happens to ULIP Premiums Paid if the Market Crashes?

Top 4 Mistakes To Avoid While Planning For Your Retirement

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

Inflation: A Key Factor to Consider into Retirement Planning

How Has NPS Performed in Comparison with Other Instruments?

Saving for approaching retirement with retirement insurance

What are the Uses of ULIP?

A Beginner's Guide to Understanding 401k Retirement Plan

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

Pros and Cons of Retirement Annuities

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

A Quick Guide to Retirement Plans

Terminologies You Should Understand About Retirement Plans

Can I Surrender My ULIP Policy after 2 Years?

Can NRIs Invest in ULIP Plans Offered in India?

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

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

Ten Signs That You're Ready to Retire

Retirement Planning for Millennials

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

Demystifying the Retirement Planning Process

What are the Benefits of ULIP - Explained

यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

7 Secrets that can Make Your Post-Retirement Phase Prosperous

Invest for your second innings with a guaranteed savings plan

Tips to invest your voluntary retirement scheme money

What tax benefits are there on saving for retirement?

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

The Significance of Number 8,000 in Retirement Planning

What is the difference between Life Insurance and ULIP?

Why Should You Invest in NPS?

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

What are the things to consider before buying ULIPs?

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

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

Top 6 Reasons Why You Should Get A Pension Plan

Benefits of Early Retirement Plans

Retirement Planning at 50? You Are Still Good to Go

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

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

Retirement Planning Guide for Working Men and Women

Why You Should Invest In An Annuity Plan?

What is Lock-In Period in ULIPs?

How Much Corpus Does One Need for Retirement?

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

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

5 Reasons to Buy ULIP for a Secured Financial Future

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

What Are Retirement Pension Plans?

ULIP Plan or Traditional Insurance Plans - Which is better?

How Does ULIP Work in India?

Top 6 Flexible Benefits That ULIPs Offer

What is a Defined Benefit Plan and How it Works?

Which Is Better: ULIP or SIP?

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

NPS for Housewife

Retirement planning with a systematic life insurance plan

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

Benefits of Early Retirement Planning in India

Types of Pension Plans for Your Retirement

What is Partial Withdrawal in ULIPs?

Is ULIP a Good Option for People Above 60?

Long Term Investment Guide for Your Retirement

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

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

What Are Superannuation Benefits?

Are Annuities Great For Early Retirement?

Save Early to Keep Living Your Dreams Post Retirement

Benefits Of Retirement & How Investments Can Help You Enjoy Them

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

5 Notable Investment Options for Retirees

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

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

Which Pension Plan Suits You best?

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

Is It Worth Buying ULIP Plans For 10 Years?

Do ULIPs Give Good Returns On Investments?

5 Common ULIP Myths That You Should Stop Believing

How To Choose The Right Pension Plan?

What are the Instruments Available for Building a Retirement Corpus?

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

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

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

Top 4 Myths About ULIP Investments You Should Know

How To Make Most of Your Money After Retirement?

Give Your Retirement Savings A Booster-Shot with Annuities

FAQs on Taxation of ULIPs

Meaning of Sum Assured in a ULIP

Know Why You Should Stay Invested in Your ULIP Plan

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

How has ULIP Grown Over the Last 3 years?

How Does Pension Plans in India Works?

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

Calculating a Retirement Corpus that can Support Your Lifestyle

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

How Safe is it to Invest in ULIP plans?

What Are Mortality Charges In ULIP?

How To Keep Your Retirement Accounts from Being Hacked?

How Do Annuity Options Work In NPS

EPF Grievance Management: All You Need to Know

What are the Differences Between ELSS ULIP and Mutual Funds?

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

Understanding Annuity Plans

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

How Does NPS Work?

How to Win at Retirement Savings?

Is ULIP a Complex Financial Product?

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

ELSS vs ULIP: Which is a Better Investment?

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

Importance of Retirement Planning

What are the Charges Levied on ULIP?

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

Is ULIP Better Than FD?

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