Difference Between Guaranteed Savings Plan and ULIP

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


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

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

How To Invest Money In ULIP?

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

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

Why Should Parents Invest in Endowment Plan?

What is the Time Value of Money (TVM)?

How To Track ULIP Performance?

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

Things to Know Before Buying an Endowment Plan

Top 5 Investment Options in 2022 for Healthy Returns

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

What is ULIP Renewal?

Building wealth through regular investing

Top 9 Investment Plans Available in India

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

ULIP Plan as a Gift

How to Start Saving Money in 10 Simple Ways?

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

Creating a second source of income with life insurance

8 Important Tips to Maximize Gains with ULIP Investments

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

Savings Plan for Grandchildren

What are Financial Assets & their types?

What are the Best Investment Options for Young Adults?

How to Manage Inheritance Money?

Which is a Better Investment - Mutual Funds Or ULIP?

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

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Long Term Savings Plan - Best Savings Investment Plans in India

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

Early Investing and the Power of Compounding

What is Money Management? Definition & Example

Receiving regular payouts at various stages of life

Do You Know the Difference Between Savings and Investment?

ULIP Benefits You Can Avail from Early Investing

How to Increase Net Worth Along with Family Protection

Top 10 Investment Strategies to Create Wealth

Best One-Time Investment Plans in India

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

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

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

Why Should You Build an Emergency Fund?

How Does an Endowment Plan Work?

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

Benefits of ULIP as a Child Insurance Plan

Top 5 Principles That Need to be Followed for Wealth Creation

What is a Savings Plan and What are is Benefits?

ULIP vs FD - Which is Better and Why?

Best Guaranteed Returns Investment Options to Meet your Financial Goals

Planning Financial Goals and Objectives of Financial Planning

ULIP NAV Meaning & How is the Return Calculated in ULIP

What is better - Guaranteed Savings Plan or Fixed Deposit?

Why Are ULIPs Called Flexible Investments?

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

Endowment Plan vs Fixed Deposit?

Learn About Safe Investments with High Returns in India

Learn About Safe Investments with High Returns in India

Difference Between Passive and Active Investing

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

What are Some of the Safest Investment Options in India?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Investments Options to Buy a house in India

What are the Best Investment Options For Females?

What are Mutual Funds?

Different Types of Endowment Plans

यूलिप के फायदे (Benefits of ULIP in Hindi)

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

How To Diversify Portfolio In 2022?

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

What are the Best Investment Options for Students in India?

Best Investment Options to Cover Your Child's Education

Are Gains from ULIP Sale Taxable?

Asset Allocations in ULIP - Know the Top Benefits

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

Important Questions You Must Ask Yourself When Buying a ULIP Plan

Which are the Best ULIP Plans in India for Children?

How to Cancel ULIP Policy?

Are Money Back Policies Helpful? A Complete Guide

What is the Importance of Saving Money?

Best Investment Options in India in 2022

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

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

Rate of Interest on Different Investment Plans in India

What is Direct Investment and its Types?

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

Importance of Portfolio Management

How to Manage Your Portfolio Like a Professional?

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

Why Should I Invest in ULIP?

ULIP as an Investment for Your Child

Short Term and Long Term ULIP Plans for Wealth Creation

Safe Investment Options with High Returns for FY 2018-19

What are Tax-Deferred Savings Plans?

How to Use Recurring Investment Strategies to Build Wealth?

Can ULIP Help in Achieving Short-Term Financial Goals?

Successful Financial Planning for Urban Women

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

Are Investment Returns Guaranteed in a ULIP?

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

Customising investments to manage your wealth

Why are ULIPs One of the Best Tax Saving Instruments?

Investment Options for NRIs in India

4 Benefits of ULIP Fund-Switching Feature

How to Make Your Financial Portfolio?

How Do One-Time Investment Plans Work?

How to Plan your Investment to Achieve Periodic Financial Goals?

How to Plan Savings from Salary?

Why Should You Invest in Term Insurance And ULIP?

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

ULIPs Investment – A Boon or Bane?

Factors Affecting Stock Markets

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

Can ULIP Policy be Transferred?