Life Insurance - Kotak Life Insurance Company in India

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

Why ULIP Should Be a Part of Your Investment Portfolio?

Why ULIP Should Be a Part of Your Investment Portfolio?
  • 15th Apr 2022 |
  • 3,647

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.

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

5 Common ULIP Myths That You Should Stop Believing

Top 4 Myths About ULIP Investments You Should Know

Pros and Cons of Retirement Annuities

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

Invest for your second innings with a guaranteed savings plan

What are the Rules for Exit From NPS?

What Are Superannuation Benefits?

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

Can NRIs Invest in ULIP Plans Offered in India?

Different Types of Retirement Schemes

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

Is the ULIP Policy Surrender Value Taxble?

How to Win at Retirement Savings?

How Does Pension Plans in India Works?

A Quick Guide to Retirement Plans

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

How To Make Most of Your Money After Retirement?

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

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

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

Why are ULIPs One of the Best Tax Saving Instruments?

How Much Corpus Does One Need for Retirement?

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

Top 4 Mistakes To Avoid While Planning For Your Retirement

How Can I Achieve My Wealth Goal with ULIP Investment?

Is ULIP a Complex Financial Product?

Saving for approaching retirement with retirement insurance

How Does NPS Work?

Why You Should Invest In An Annuity Plan?

Ten Signs That You're Ready to Retire

Retirement: A New Start to Life!

Is ULIP a Good Option for People Above 60?

NPS for Housewife

5 Steps to Gift a Smart Retirement Plan to Your Parents

Retirement Planning Guide for Working Men and Women

Can I Surrender My ULIP Policy after 2 Years?

Is ULIP Better Than FD?

What are the Instruments Available for Building a Retirement Corpus?

How Does ULIP Work in India?

How To Keep Your Retirement Accounts from Being Hacked?

Which Pension Plan Suits You best?

Long Term Investment Guide for Your Retirement

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

Meaning of Sum Assured in a ULIP

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

How has ULIP Grown Over the Last 3 years?

Importance of Retirement Planning

What is the difference between Life Insurance and ULIP?

Advantages of Pension Schemes and Retirement Plans

What are the Advantages and Disadvantages of ULIP?

What are the Differences Between ELSS ULIP and Mutual Funds?

Do ULIPs Give Good Returns On Investments?

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

Benefits of Early Retirement Plans

Managing Your Retirement Income with an insured retirement plan

How should one decide on fund allocation within NPS?

What Are Mortality Charges In ULIP?

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

5 Reasons to Buy ULIP for a Secured Financial Future

ULIP Plan or Traditional Insurance Plans - Which is better?

Retirement Planning for Millennials

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

What is the Minimum Lock-in Period for ULIP?

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

What are ULIPs and their Types?

Why Should You Invest in NPS?

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

What Are Retirement Pension Plans?

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

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

Calculating a Retirement Corpus that can Support Your Lifestyle

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

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

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

What tax benefits are there on saving for retirement?

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

Top Investment Options for Retirement Planning

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

Do Pension Plans Allow any Death Benefits?

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

Is ULIP A Good Investment Option?

What is Lock-In Period in ULIPs?

How can NPS help you save tax?

What is a Retirement Plan - What are its Features?

7 Secrets that can Make Your Post-Retirement Phase Prosperous

How Safe is it to Invest in ULIP plans?

Importance of financial Planning for Retirement

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

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

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

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

Demystifying the Retirement Planning Process

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

Types of Retirement Plans

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

What Happens to ULIP Premiums Paid if the Market Crashes?

Retirement Planning at 50? You Are Still Good to Go

Benefits Of Retirement & How Investments Can Help You Enjoy Them

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

8 Charges in ULIP That You Must Know

What are the Charges Levied on ULIP?

What is ULIP and Its Benefits?

Save Early to Keep Living Your Dreams Post Retirement

Give Your Retirement Savings A Booster-Shot with Annuities

The Significance of Number 8,000 in Retirement Planning

5 Notable Investment Options for Retirees

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

Inflation: A Key Factor to Consider into Retirement Planning

Which are the Best ULIP Plans in India for Children?

How To Choose The Right Pension Plan?

ELSS vs ULIP: Which is a Better Investment?

Tips to invest your voluntary retirement scheme money

Are Annuities Great For Early Retirement?

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

What are the Uses of ULIP?

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?

Types of Pension Plans for Your Retirement

Is It Worth Buying ULIP Plans For 10 Years?

What is Partial Withdrawal in ULIPs?

At What Age Should You Start Your Retirement Planning?

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

What is Fund Value in ULIP?

Know Why You Should Stay Invested in Your ULIP Plan

Terminologies You Should Understand About Retirement Plans

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

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

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

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

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

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

What are the things to consider before buying ULIPs?

Un-Retirement - Are You Ready For It?

Top 6 Reasons Why You Should Get A Pension Plan

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

Why Should I Invest in ULIP?

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

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

Understanding Annuity Plans

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

A Beginner's Guide to Understanding 401k Retirement Plan

How Has NPS Performed in Comparison with Other Instruments?

FAQs on Taxation of ULIPs

What are the Benefits of ULIP - Explained

Which Is Better: ULIP or SIP?

How Do Annuity Options Work In NPS

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

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

Top 6 Flexible Benefits That ULIPs Offer

यूलिप के फायदे (Benefits of ULIP in Hindi)

Why Are ULIPs Called Flexible Investments?

Benefits of Early Retirement Planning in India

Different Types of ULIP Investments in India

How To Invest Money In ULIP?

यूलिप के 8 शुल्क

Retirement planning with a systematic life insurance plan