Can ULIP Help in Achieving Short-Term Financial Goals?
Close

Buy a Life Insurance Plan in a few clicks

Close

Now you can buy life insurance plan online.

Kotak e-Term Plan

Kotak e-Term Plan provides a high level of protection to your loved ones in your absence. Know more

Kotak Guaranteed Savings Plan

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

Kotak E-Invest

Kotak e-Invest plan is a complete Unit-Linked Insurance Plan that can be customized as per your goals and needs. Know more

Kotak Health Shield

Kotak Health Shield Plan helps secure your finances in sudden medical expenses such as Cardiac, Liver, Neuro, and Cancer (all early and significant illness stages/conditions of cancer), along with offering protection for personal accidents - in case of accidental death or disability. Know more

Kotak Lifetime Income Plan

Kotak Lifetime Income Plan gives you the security of your income continuing throughout your life and in your absence throughout your spouse's lifetime! Know more

Can ULIP Help in Achieving Short-Term Financial Goals?

Can ULIP Help in Achieving Short-Term Financial Goals?
  • 15th Jul 2022 |
  • 3,675

Do you wonder why most people are dissatisfied with their life? Why do they give up on their dreams? This is mainly due to a lack of proper guidance about financial literacy. If you define your goals and work on an effective plan, you can easily accomplish your financial goals. Financial literacy helps you to articulate your expectations by managing the necessary financial skills such as budgeting, investing, finance management, etc. With the help of financial goals, you are able to cut extra expenses, save more for your future goals and provide financial security for your loved ones.

What are Financial Goals?

Financial goals are the objectives you set over a fixed period while saving, investing, and managing your money. When you have a distinct vision of your dreams, you can design a realistic plan to accomplish your goals. Hence, it is vital to define your financial goals. Now, there are three types of financial goals:

Short-term Goals

The goals that can be achieved in a few months are called short-term goals. Planning a vacation, purchasing a gadget, or starting an emergency fund are all examples of short-term goals. Sometimes, short-term goals can act as small milestones toward your long-term goals.

Long-term Goals

Long-term goals help you meet your requirements in the distant future. These might take ten years or more to be accomplished. Post-retirement goals can be termed long-term goals like saving for children’s marriage, paying off a mortgage, etc.

Mid-term Goals

These financial objectives take longer than the short-term goals but a shorter period than long-term goals. For example, mid-term goals might take from a few months to a few years to be accomplished, such as saving for your marriage, planning to start a business, renovating your house, etc.

Financial planning is pivotal to achieving your goals, preparing for unexpected emergencies, and beating inflation. Long-term plans can take care of your post-retirement life, while short-term investment plans fulfill your immediate needs. Additionally, it helps you track your finances and assess your taxes.

A financial plan is a customized plan designed according to your unique lifestyle. It is determined by different factors such as your income, budget, current financial situation, risk-taking appetite, and goals. Financial planning can be done in the following simple steps:

1. Analyze your current financial circumstances

2. Define your financial goals into long-term, mid-term, and short-term investment plans.

3 .Explore all the investment tools available in the financial market and choose the right fit for you.

There are two possible ways to become financially stable. One is to invest and increase the value of your savings, while another is to purchase insurance to provide financial security in case of an emergency or unforeseen events. What if you get the benefits of investment and insurance in a single plan?

It is possible to do so with Unit-Linked Insurance Plan. A fixed amount of the premiums covers the mortality charges, while the remaining is used to invest in different tools to generate more returns.

ULIP for Short-Term Investment Plans

ULIP for short-term investment plans is considered an excellent tool by financial experts. ULIP gives the flexibility to select to invest in debt, equity, or a combination of the two, called the balanced fund.

Benefits of ULIP for short-term investment plans:

1. ULIPs provide flexibility to pay premiums and select the ULIP based on the duration of the policy, like short-term ULIPs.

2. You can opt for debt-based ULIPs for short-term goals to minimize the risk and keep your investments safer.

3. ULIP offers dual advantages of insurance cover and wealth creation by investment.

4. The maturity amount received after five years is tax-free under Section 10 (10D) of the Income Tax Act.

5. ULIPs allow you to create wealth over a short period and meet your short-term financial goals.

It is often misbelieved that ULIP is only beneficial for long-term goals. However, ULIPs for short-term investment plans can be the perfect option for you, offering financial security, tax-free returns and the flexibility for partial withdrawal. Unit-Linked Insurance Plan is a triple-advantage tool that provides life insurance, capital appreciation, and tax-exemption benefits.

Kotak e-Invest

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

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

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

ULIP Benefits You Can Avail from Early Investing

How To Track ULIP Performance?

Different Types of Endowment Plans

Do You Know the Difference Between Savings and Investment?

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

Building wealth through regular investing

Difference Between Passive and Active Investing

Asset Allocations in ULIP - Know the Top Benefits

Best Investment Options in India in 2022

4 Benefits of ULIP Fund-Switching Feature

How to Make Your Financial Portfolio?

4 Important Tips to Maximize Gains with ULIP Investments

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

What is ULIP Renewal?

What are Some of the Safest Investment Options in India?

What is a Savings Plan and What are is Benefits?

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

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

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

What are Deferred Savings Plans?

Long Term Savings Plan - Best Savings Investment Plans in India

Importance of Portfolio Management

3 Tips to Buy Guaranteed Savings Plan

Investments Options to Buy a house in India

How to Plan your Investment to Achieve Periodic Financial Goals?

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

Early Investing and the Power of Compounding

How to Cancel ULIP Policy?

Safe Investment Options with High Returns for FY 2018-19

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

Planning Financial Goals and Objectives of Financial Planning

What are the Best Investment Options for Young Adults?

Who Should Invest in Savings Plan?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Basics of Guaranteed Savings Plan

Complete Savings Plan for Low Income Earners

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

ULIP vs FD - Which is Better and Why?

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

What are the Best Investment Options For Females?

Top 5 Investment Options in 2022 for Healthy Returns

Are Gains from ULIP Sale Taxable?

How to Manage Your Portfolio Like a Professional?

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

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

Things to Know Before Buying an Endowment Plan

Top 10 Investment Strategies to Create Wealth

ULIP Plan as a Gift

Important Questions You Must Ask Yourself When Buying a ULIP Plan

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

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

Customising investments to manage your wealth

Short Term and Long Term ULIP Plans for Wealth Creation

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

How to Start Saving Money in 10 Simple Ways?

ULIP as an Investment for Your Child

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

What are Tax-Deferred Savings Plans?

Investment Options for NRIs in India

Savings Plan for Grandchildren

Top 6 Investment Plans Available in India

Are Money Back Policies Helpful? A Complete Guide

Learn About Safe Investments with High Returns in India

Best Investment Options to Cover Your Child's Education

How to Plan Savings from Salary?

How to Increase Net Worth Along with Family Protection

Why Should You Invest in Term Insurance And ULIP?

Best One-Time Investment Plans in India

How Do One-Time Investment Plans Work?

Learn About Safe Investments with High Returns in India

How To Diversify Portfolio In 2022?

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

Difference Between Guaranteed Savings Plan and ULIP

What is the Importance of Saving Money?

How to Manage Inheritance Money?

Endowment Plan vs Fixed Deposit?

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

Successful Financial Planning for Urban Women

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

Top 5 Principles That Need to be Followed for Wealth Creation

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

Why Should Parents Invest in Endowment Plan?

Creating a second source of income with life insurance

Receiving regular payouts at various stages of life

What is better - Guaranteed Savings Plan or Fixed Deposit?

Benefits of ULIP as a Child Insurance Plan

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

Which is a Better Investment - Mutual Funds Or ULIP?

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

How Does an Endowment Plan Work?

What are the Best Investment Options for Students in India?