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.

Difference Between Guaranteed Savings Plan and ULIP

A guaranteed Savings Plan (GSP), is a non-participating non-linked endowment life insurance plan.  ULIP provides the dual benefit of investment and insurance.

  • Apr 26, 2022

Financial planning and safety are critical for almost all of us because we need to be financially strong to handle the different situations for ourselves and our families in every phase of life, ensuring a secure future for our families and us.

However, it might be difficult for many to select the right financial product for themselves, given the limitless availability of financial plans. So, if you are planning to invest and looking for an insurance plan to fit your financial goals and requirements, you may look for Unit Linked Insurance Plans (ULIPs).

Thus, to make it clearer for you, we will discuss the difference between a guaranteed savings plan and ULIP. This will help you understand why ULIPs have become popular and why they may be a better investment option when comparing ULIP and guaranteed plans.

Difference between Guaranteed Savings Plan(GSP) and Unit Linked Insurance Plan(ULIP)

Here is a table based on the important parameters to suggest the difference between guaranteed savings plan and ULIP.

Difference between Guaranteed Savings Plan and ULIP



Guaranteed Savings Plan


Dual benefit of investment and insurance

Mainly non-participating insurance and guaranteed returns


Investment and insurance with market-linked opportunities

Guaranteed Savings/returns

Tax benefit

Available under Section 80C & 10(10D)

Available under Section 80C

Return on investment

Variable return based on the type of fund invested in and markets’ performance

Guaranteed return as the investment in volatile and risky funds is low.


All the charges are transparent and the policyholder is informed beforehand about them

Managing GSP can be a little expensive. Can include some hidden charges based on the policy terms.

When should you consider

To be considered when you require life insurance protection and a good return to stay in sync with market growth.

If you manage ULIP wisely you can get a good long-term return.

To be opted by those who don’t want to take any risk and need guaranteed return at a stable rate of interest.

How your money is utilized

The premium paid is divided into two parts. One goes towards insurance and the other one towards investment in market funds.

The premium directly goes towards insurance cover. The policyholder is promised a guaranteed payout.




Investment portfolio

You can manage which funds you want to invest in and switch between them.

You cannot track the exact portfolio until the insurance company reveals its holdings

No method of knowing the investment portfolio. The whole fund is managed by the insurance company

Lock in period

3 – 5 years depending on policies

Locked till maturity. Can be discontinued after 3 years without losses and payment based on the premium deposited


No security on investment as linked to market products

Highly secured & Guaranteed return

Ideal term

Suggested for long term

Preferred Long term

The information mentioned above is enough to tell you all about ULIP vs Guaranteed plan. From what we have seen, ULIPs seem to be a better deal for people who are aiming at long-term wealth generation. Both ULIPs and Guaranteed Plans are good investment tools. The requirement will differ in each.

If you are looking for a long-term investment and balanced or optimized returns, ULIP is tailor-made for you. However, if you know that future holds uncertainties and you need to invest for those unforeseen situations, guaranteed plans can be your savior.

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

What is ULIP and Its Benefits?

Top 10 Investment Plans Available in India

Why Should Parents Invest in Endowment Plan?

Top 5 Investment Options in 2022 for Healthy Returns

What is ULIP Plan, and How Does it Work?

Importance of Portfolio Management

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

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

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

How to Plan your Investment to Achieve Periodic Financial Goals?

ULIP NAV Meaning & How is the Return Calculated in ULIP

Can ULIP Help in Achieving Short-Term Financial Goals?

Investments Options to Buy a house in India

Factors Affecting Stock Markets

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

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

Which is a Better Investment - Mutual Funds Or ULIP?

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

What are Financial Assets & their types?

Long Term Savings Plan - Best Savings Investment Plans in India

Building wealth through regular investing

Rate of Interest on Different Investment Plans in India

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

What are Tax-Deferred Savings Plans?

What are Index Funds and How Do They Work

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

Best Investment Options to Cover Your Child's Education

What are the Best Investment Options for Students in India?

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

Investment Options for NRIs in India

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

How Does an Endowment Plan Work?

What are Some of the Safest Investment Options in India?

Are Investment Returns Guaranteed in a ULIP?

How To Diversify Portfolio In 2023?

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

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

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

How to Cancel ULIP Policy?

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

What is the Time Value of Money (TVM)?

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

ULIPs Investment – A Boon or Bane?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

What are the Advantages and Disadvantages of ULIP?

ULIP vs FD - Which is Better and Why?

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

Successful Financial Planning for Urban Women

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

Do You Know the Difference Between Savings and Investment?

Why Should I Invest in ULIP?

How to Plan Savings from Salary?

Everything You Must Know About ULIP Riders

Learn About Safe Investments with High Returns in India

Different Types of Endowment Plans

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

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

4 Benefits of ULIP Fund-Switching Feature

How to Manage Your Portfolio Like a Professional?

What is the Importance of Saving Money?

Difference Between Passive and Active Investing

Safe Investment Options with High Returns for FY 2018-19

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

How Do One-Time Investment Plans Work?

What is Money Management? Definition & Example

How to Make Your Financial Portfolio?

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

ULIP Plan as a Gift

Why Are ULIPs Called Flexible Investments?

Corporate Bonds: Meaning, Types & Benefits

How To Invest Money In ULIP?

Why Should You Build an Emergency Fund?

What Is Financial Planning?

यूलिप के फायदे (Benefits of ULIP in Hindi)

Short Term and Long Term ULIP Plans for Wealth Creation

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

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

Customising investments to manage your wealth

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

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

Top 10 Investment Strategies to Create Wealth

Endowment Plan vs Fixed Deposit?

8 Charges in ULIP That You Must Know

Planning Financial Goals and Objectives of Financial Planning

Receiving regular payouts at various stages of life

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

How to Increase Net Worth Along with Family Protection

How to Manage Inheritance Money?

Why are ULIPs One of the Best Tax Saving Instruments?

Top 5 Principles That Need to be Followed for Wealth Creation

What is SIP Calculator, And How Does it Work?

Asset Allocations in ULIP - Know the Top Benefits

ULIP Benefits You Can Avail from Early Investing

Early Investing and the Power of Compounding

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

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

यूलिप के फायदे और नुकसान क्या हैं?

What is Direct Investment and its Types?

8 Important Tips to Maximize Gains with ULIP Investments

वित्तीय संपत्तियां और उनके प्रकार

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

Creating a second source of income with life insurance

Can ULIP Policy be Transferred?

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

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

What is ULIP Renewal?

Is the ULIP Policy Surrender Value Taxable?

Best Guaranteed Returns Investment Options to Meet your Financial Goals

What are Mutual Funds?

Benefits of ULIP as a Child Insurance Plan

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

ULIP as an Investment for Your Child

What are the Best Investment Options for Young Adults?

Important Questions You Must Ask Yourself When Buying a ULIP Plan

Best Investment Options in India in 2022

Are Money Back Policies Helpful? A Complete Guide

Why Should You Invest in Term Insurance And ULIP?

Difference Between ULIP and Endowment Plan?

Savings Plan for Grandchildren

6 Important Tips to Maximize Your Gains with ULIP Investments

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

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

What are the Best Investment Options For Females?

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

How to Calculate Your ULIP Returns?

How to Start Saving Money in 10 Simple Ways?

Best One-Time Investment Plans in India

Are Gains from ULIP Sale Taxable?

What is Equity Mutual Funds: Meaning, Types & Benefits

Learn About Safe Investments with High Returns in India

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

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

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

How To Track ULIP Performance?

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

How to Use Recurring Investment Strategies to Build Wealth?

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

Things to Know Before Buying an Endowment Plan

What is a Savings Plan and What are is Benefits?

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

Which are the Best ULIP Plans in India for Children?

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

ULIPs: Suitable for all