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


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.

4 Benefits of ULIP Fund-Switching Feature

ULIP plans allow switching the investment fund during the policy tenure. Though it is chargeable, it provides flexibility to the change the policy strategy as per the market trends.

  • Jul 15, 2022

To secure your future financially, you must begin to save, invest and manage your finances. Investment is vital to put your money to work and create wealth. There are numerous tools available in the financial market to help you meet your financial goal. Everyone wants to increase the value of their savings. However, people often refrain from investing due to the risk involved. What if you are able to invest while minimizing the risk and also getting insurance cover? One such excellent choice is Unit-Linked Insurance Plan. It offers dual advantages of investment and insurance simultaneously. Keep reading to know more about it!

What is ULIP?

Unit-Linked Insurance Plan is an insurance policy that uses a component of your premium to provide insurance and the remaining to invest in different sectors. Based on the kind of investment, ULIPs can be debt-based, equity-based, or a combination of equity and debt called the Balanced fund.

Following are some prominent benefits of ULIPs:

1. The maturity amount received in ULIPs after the lock-in period of five years is tax-free.

2. ULIPs provide flexibility to pay premiums in accordance with your own convenience. Additionally, you can choose low-risk or high-risk investment options according to your risk-taking appetite.

3. You can select short-term or long-term ULIPs according to the duration of your financial goals.

4. ULIPs offer transparency to the policyholders with regular NAV updates that help them to track the performance of their funds.

5. You can make a partial withdrawal from your ULIP policy in case of an unexpected event.

Among numerous advantages of the ULIP, one of the most useful features is the ability to switch funds. The liberty to switch funds allows you to tailor your investments according to your preferences. You can customize your investment in the best way it suits you.

How to make fund switches?

To maximize your returns and minimize the loss, you must know when to transfer your units. It is not possible to predict the market fluctuations accurately, but one can make the switch by tracking their NAV updates. Net Asset Value (NAV) is declared by the insurer on a regular basis and makes the policyholder aware of their fund’s performance.

One can switch the funds on the official website of the Insurance company. Alternatively, you can fill out the required form and submit it at the nearest branch to transfer your funds.

Benefits of the ULIP Fund Switching Feature of ULIP:

Protect your Investment from the Market Volatility

Most investors refrain from investing due to the market fluctuations affecting the performance of their funds. However, the fund switching feature of ULIP allows you to modify your investment and minimize the loss.

Accomplish your Financial Goals

Financial goals are the objectives you set to accomplish over a certain period. Short-term goals can be achieved in a short period, while long-term goals can take several years to be fulfilled.

ULIPs invest your funds in equity, debt, or balanced funds depending upon your budget, risk-taking appetite, and duration of your financial goals. With the fund switching benefit of ULIPs, you can transfer your units fully or partially between these different options while aligning your portfolio with your life goals.

Invest According to your Risk-Taking Appetite

You can switch funds anytime and modify your investment according to your income, budget, and risk-taking appetite. For instance, one can afford to take a higher risk at a younger age but might want to switch to a low-risk option later. ULIPs allow you to switch to debt-based types that involve low risk and vice versa.

Tax-Free Transfer

ULIPs not only offer tax-free returns on the maturity benefit but also allow you to switch your funds with almost no tax applicable. Moreover, it does not attract any capital gains tax, hence letting the policyholders make multiple tax-free switches.

Hence, you can easily switch your funds and allocate your assets according to your preferences in the Unit-Linked Insurance Plan. As a result, you can minimize the risk and maximize the returns according to the performance of your funds in the capital market.

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

Kotak e-Invest

Download Brochure


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

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


- A Consumer Education Initiative series by Kotak Life

Similar Articles

Do You Know the Difference Between Savings and Investment?

What are loyalty additions, and how do they work in a ULIP?

What is ULIP and Its Benefits?

Which are the Best Investment Plans for Indian Senior Citizens in 2022?

Why Should You Build an Emergency Fund?

How to Plan your Investment to Achieve Periodic Financial Goals?

Here's Why it's a Good Time to Explore ULIPs as an Investment

What is Equity Mutual Funds: Meaning, Types & Benefits

How to Start Saving Money in 10 Simple Ways?

Factors Affecting Stock Markets

लॉयल्टी एडिशन क्या हैं, और वह यूलिप में कैसे काम करते हैं?

Why Should I Invest in ULIP?

Different Types of Endowment Plans

What Is Financial Planning?

Short Term and Long Term ULIP Plans for Wealth Creation

What are the Best Investment Options for Young Adults?

Best Investment Options to Cover Your Child's Education

How to Cancel ULIP Policy?

What is SIP Calculator, And How Does it Work?

Which is Better – FD, Mutual Fund, SIP, or ULIP?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Which is a Better Investment - Mutual Funds Or ULIP?

ULIPs Investment – A Boon or Bane?

Why Should Parents Invest in Endowment Plan?

How to Make Your Financial Portfolio?

What are Tax-Deferred Savings Plans?

What are the Best Investment Options for Beginners or Amateur Investors in India?

Best Investment Options in India in 2022

Learn About Safe Investments with High Returns in India

Savings Plan for Grandchildren

Top 10 Investment Strategies to Create Wealth

The Importance of Starting Early: Securing Your Child's Future with a Child Education Plan

Endowment Plan vs Fixed Deposit?

Can ULIP Policy be Transferred?

How Much Wealth Can You Create from ULIP in 10 years?

Is This The Right Time To Invest In ULIP? Why or Why Not?

वित्तीय संपत्तियां और उनके प्रकार

What's Better for Your Child's Education? Child Plans or Mutual Funds?

How to Increase Net Worth Along with Family Protection

यूलिप के फायदे (Benefits of ULIP in Hindi)

Building wealth through regular investing

Why ULIP is Better Investment for Long-Term Wealth Creation?

Difference Between Passive and Active Investing

Top 5 Principles That Need to be Followed for Wealth Creation

Can ULIP Help in Achieving Short-Term Financial Goals?

Difference Between ULIP and Endowment Plan?

Important Questions You Must Ask Yourself When Buying a ULIP Plan

Top 5 Investment Options in 2022 for Healthy Returns

What is the Importance of Saving Money?

Asset Allocations in ULIP - Know the Top Benefits

What are Some of the Safest Investment Options in India?

Creating a second source of income with life insurance

यूलिप के फायदे और नुकसान क्या हैं?

How to Use Recurring Investment Strategies to Build Wealth?

Corporate Bonds: Meaning, Types & Benefits

Learn About Safe Investments with High Returns in India

ULIP as an Investment for Your Child

8 Charges in ULIP That You Must Know

Customising investments to manage your wealth

Debt ULIPs vs. Debt Mutual Funds: What's the Difference?

ULIP Capital Gain Tax: Check Tax Norms for Capital Gain on ULIPs

What are Mutual Funds?

What are the Best Investment Options For Females?

8 Important Tips to Maximize Gains with ULIP Investments

How to Plan Savings from Salary?

Long Term Savings Plan - Best Savings Investment Plans in India

Why Should You Consider Guaranteed Savings Plan for Long-Term Investment?

The lesser-known facts about ULIP policy that customers should be aware of?

What are the Best Investment Options for Students in India?

How to Plan Your Child's Education - A Step-by-Step Guide

What are Financial Assets & their types?

How to Calculate Your ULIP Returns?

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

How is the Compound Annual Growth Rate (CAGR) Calculated in ULIP?

Things to Know Before Buying an Endowment Plan

Are Money Back Policies Helpful? A Complete Guide

Investments Options to Buy a house in India

Importance of Portfolio Management

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

How Do One-Time Investment Plans Work?

Are Investment Returns Guaranteed in a ULIP?

ULIP vs FD - Which is Better and Why?

What is ULIP Renewal?

ULIPs: Suitable for all

Why is Portfolio Diversification Important? How to Diversify Your Portfolio?

Receiving regular payouts at various stages of life

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

How To Track ULIP Performance?

How To Diversify Portfolio In 2023?

How to Manage Your Portfolio Like a Professional?

ULIP Benefits You Can Avail from Early Investing

Which are the Best ULIP Plans in India for Children?

ULIP NAV - Everything You Need to Know

Four Financial Lessons from The Vedas on Living Life to The Fullest

Got a Salary Hike? Here’s How to Plan your investment further

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

How to Fulfil Your Financial Goals in the Next 10 Years?

Investment Options for NRIs in India

Is the ULIP Policy Surrender Value Taxable?

What are the Best Short-Term Investment Plans with High Returns?

6 Important Tips to Maximize Your Gains with ULIP Investments

Benefits of ULIP as a Child Insurance Plan

Beginner's Guide to Wealth Creation: Meaning, Strategies, & Importance

What is Direct Investment and its Types?

What is a Savings Plan and What are is Benefits?

Difference Between Guaranteed Savings Plan and ULIP

Safe Investment Options with High Returns for FY 2018-19

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Planning for Your Child's Higher Education? Explore These Investment Options

Best One-Time Investment Plans in India

Best Investment Plans for Children - Secure Your Child's Future

Why Should You Invest in Term Insurance And ULIP?

Why Are ULIPs Called Flexible Investments?

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

Are Gains from ULIP Sale Taxable?

How Does an Endowment Plan Work?

Everything You Must Know About ULIP Riders

Best Guaranteed Returns Investment Options to Meet your Financial Goals

Rate of Interest on Different Investment Plans in India

How to Manage Inheritance Money?

What are Index Funds and How Do They Work

ULIP Plan as a Gift

What is Compound Interest, And How Do I Calculate it?

Planning Financial Goals and Objectives of Financial Planning

Why are ULIPs One of the Best Tax Saving Instruments?

What is a Child Money Back Plan, and How Does it Work?

A Step-by-Step Guide: How To Make An Investment Plan?

What is the Time Value of Money (TVM)?

Top 10 Investment Plans Available in India

What is Money Management? Definition & Example

Successful Financial Planning for Urban Women

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Why Do You Need A ULIP Plan - All You Need To Know

How Can a Legal Nominee Claim ULIP Benefits are the Policyholder’s Death?

What is Fund Switch in ULIP? And ULIP Fund Switching Techniques

What is a Credit Score and How Can Insurance Help You Improve it?

What is ULIP Plan, and How Does it Work?

Early Investing and the Power of Compounding

What are the Advantages and Disadvantages of ULIP?

How Can ELSS Funds Help You Save Tax & Create Wealth?

How To Invest Money In ULIP?

यूलिप प्लान में परिपक्वता लाभ क्या हैं: फंड वैल्यू सम एश्योर्ड या ओनली फंड वैल्यू?

Does Rupee Cost Averaging Work In Unit-Linked Insurance Plans?