Buy a Life Insurance Plan in a few clicks
Insurance and Investment in one plan.
A plan that works like a term plan, and Earns like ULIP Plan
Thank you
Our representative will get in touch with you at the earliest.
In this policy, the investment risk in the investment portfolio is borne by the policyholder.
Kotak e-Invest
Features
Ref. No. KLI/22-23/E-BB/492
Sum assured and fund value are critical components of a Unit Linked Insurance Plan (ULIP). While the sum assured refers to the guaranteed payout upon the policyholder's demise, the fund value represents the market-linked investment portion. Understanding the difference between fund value and sum assured can help you maximize the benefits of your ULIPs.
ULIPs combine insurance and investment, offering you a dual advantage. However, terms like sum assured and fund value may often confuse you. To grasp the difference between fund value and sum assured, you must align your choices with long-term financial goals and risk preferences.
The sum assured is the predetermined amount the insurer guarantees to pay the policyholder's nominee in the event of the policyholder's demise during the policy term. It is essentially the life insurance component of a ULIP and ensures financial security for the policyholder’s family. The difference between fund value and sum assured is key to ensuring that you can leverage the insurance component for your family’s financial protection.
Key points about the sum assured:
The fund value represents the market-linked investment component of a ULIP. It is the total worth of the units in the investment fund chosen by you, calculated based on the prevailing Net Asset Value (NAV). Knowing the difference between fund value and sum assured empowers you to balance your ULIP investments for optimal growth while retaining the assurance of a life cover.
Key points about the fund value:
The dual payout structure under a ULIP depends on whether the payout is due to the policyholder’s demise or policy maturity. This payout mechanism highlights the difference between fund value and sum assured and how they complement each other in a ULIP to provide comprehensive benefits.
ULIP plans often come with a top-up option, allowing you to enhance your investment beyond regular premiums. Additionally, they provide the flexibility to allocate funds between equity and debt based on changing financial goals or market trends. Their benefits are explained in detail below:
To truly benefit from ULIP policies, it is essential to tailor your approach. Begin by analyzing your financial objectives, whether it is wealth creation, family protection, or retirement planning. Regularly review your fund performance and switch allocations between equity and debt to align with market conditions and personal milestones. By understanding the difference between fund value and sum assured, utilizing the top-up feature, and maintaining a disciplined investment approach, you can maximize both the protection and growth potential offered by ULIPs.
1
The sum assured is the guaranteed insurance payout, while the fund value represents the investment portion linked to market performance.
2
The sum assured is fixed at the time of policy purchase and does not fluctuate during the policy term.
3
Yes, the fund value varies based on the performance of the investment funds chosen by the policyholder.
4
The higher of the sum assured or fund value is paid to the nominee in case of the policyholder’s demise.
5
Yes, if the chosen investment funds perform well, the fund value can exceed the sum assured over time.
6
Yes, the sum assured is a guaranteed amount and does not depend on market conditions.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
In this policy, the investment risk in the investment portfolio is borne by the policyholder.
Kotak e-Invest
Features
Ref. No. KLI/22-23/E-BB/521
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
Grow your wealth effortlessly with our ULIP plan options now!
