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.

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

It's critical to comprehend the many investment programmes that are available, as well as the dangers and rewards that go along with them, to make an educated decision.

  • Mar 16, 2022

The past, present, and future are the inevitable reality and truth of our existence. While the past cannot be altered, the present and future can always be protected. This is where the need for careful financial planning and investing choices becomes critical. Since the investment market has grown in size recently, it might be difficult for an investor to decide which financial instrument to invest in.

In India, there are numerous different investment plans to choose from. The investor’s long-term goals and objectives should be considered when selecting an investment strategy. It’s crucial to ascertain the type of investment that will yield the maximum return and the level of risk associated with each choice.

A great number of individuals favour the ULIP policy. If you’re interested in learning more about ULIPs and other investing alternatives, we’ll guide you through. Often, ULIP schemes are compared with ELSS and PPF, and individuals are generally confused about which choice is best suited to their needs. We’ll continue to debate which is better: ULIP, ELSS, or PPF, and how ULIPS differs from other insurance plans. 

Differentiating Aspect of ULIPs from Other Life Insurance Plans

A ULIP or Unit Linked Insurance Plan is a scheme that combines insurance and investment into one package. It combines wealth creation with life insurance by having the insurance company invest a portion of your income in life insurance premiums and the balance in stocks, bonds, equities, debt, or a combination of these alternatives, depending on your long-term objectives.


To help you make the best investment decision based on your financial goals, we’ve outlined the difference between Unit Linked Insurance Plan, Equity Linked Savings Scheme, and Public Provident Fund.

Unit Linked Insurance Plan Or ULIP

Public Provident Fund or PPF

Equity Linked Saving Scheme Or ELSS

Investment Type

ULIP combines investment and life insurance plans into one.

PPFs are a pure investment plan.

ELSS is a pure investment plan.

Lock-In Period

ULIPs have a 5-year mandatory lock-in period.

PPF have a mandatory lock-in period of 15 years.

ELSS have a minimum of 3-year lock-in tenure.


This financial plan provides momentum for investment gains as well as tax reduction and life insurance.

The scheme’s principal goal is to assist people in making little deposits and offer returns on their investments.

A professionally run fund that invests in a variety of equities and reaps the rewards.


In ULIPs, the rate of return might fluctuate.

Since this investor selects a mix of equity, bond, and hybrid funds for investment, this influences the rate of return.
After looking over all of the facts and studying the difference between ULIP, ELSS, and PPF, it’s critical to determine your financial objectives and then choose between ULIP, ELSS, and PPF to invest your money in the instrument that best suits you and your family.

PPF currently has a 7.9% annual rate of return.

The rate of return in an ELSS is subjected to variation, which means that it is solely determined by how well the stock market does over a period.


Significant risk, no assurance of money or return, but life insurance is assured.

PPF is a government-backed scheme, and Thus are risk-free.

Returns depend on the success of the wider markets and the fund Manager - thus, they have high risk.

Tax Benefits

Returns and investments are exempted from taxes under 80C Deduction , and Section 10(10D) of the Income Tax Act of 1961

Tax benefits are offered under Section 80C of the Income Tax Act of 1961.

Long Term Capital Gains (LTCG) tax regulation exempts investments as non-taxable under Section 80C and returns up to ₹1 lakh per year.

Why Invest in ULIP?

Savings accounts and fixed deposits, which are common investment options, are unable to offer returns that can keep pace with the rate of inflation. Direct investment in the stock market, however, carries significant dangers. For this reason, the market saw the introduction of investment programmes like Unit Linked Insurance Plans (ULIPs).

ULIP policy is a fantastic investing strategy that enables you to gain from the stock market without taking on significant risks and also functions as a life insurance policy. In addition to the dual advantages, ULIP plans provide several additional advantages that rank them among the top long-term investment plans.

Here are four key justifications for why you ought to buy a ULIP plan right now!


Due to the variety of investment alternatives, one may now assume that ULIPs are comparable to mutual funds. ULIP allows investors to choose between various types of programmes, unlike mutual funds. The best way to take advantage of investment opportunities across the equity and debt markets is to switch between various schemes. For instance, if someone wants a higher rate of return, they can change from a conservative to an aggressive strategy.

Combines Insurance with Savings

A ULIP is a type of life insurance that also functions as an investing strategy for the long term. A ULIP plan also distributes an expanded corpus with market-linked returns upon maturity in addition to the death benefit. To achieve your financial objectives, you do not need to enrol in a separate life insurance plan and mutual fund investments.

Multiple investment options

ULIPs offer a choice of options, unlike typical investment plans and life insurance plans. A person can select from various ULIP programmes based on his investing requirements and risk tolerance. The following categories can broadly be applied to ULIP investments:

Unrelenting ULIPs (invests majorly in the equity markets)

Equilibrated ULIPs (invest in both equity and debt markets)

Consistent ULIPs (invests majorly in debt markets)

Systematic investment

A ULIP plan encourages someone to make disciplined investments. By making tiny, recurring investments, you can protect yourself from the ups and downs of the market. This enables you to benefit from rupee costs, enabling you to maximise market price swings.

Wrapping Up

Endowment plans and guaranteed savings plans are examples of traditional life insurance plans that offer fixed and guaranteed returns. These programs allow you to save money, which can be used to fund objectives like a daughter’s wedding and schooling. Due to their tax-exempt status, these plans are also the greatest regarding financial gifts.

Money-Back plans, which provide regular payouts, can be coordinated to guarantee a quality education for your child or provide financial support for parents.

ULIP schemes incorporate market investment. Over time, these can greatly increase your wealth. Therefore, ULIPs can be used to accomplish goals with a long time horizon, such as building a retirement corpus, pension, or leaving a legacy.


Is ULIP a good investment option?

The best place to invest is in ULIP policy. They not only provide life insurance and make sure your money is safe; they also give you the opportunity to make money by investing your money. They are among the best investments to make because of their adaptability. Make sure to carefully review all the features and the terms and conditions in the policy document before buying a ULIP plan.

What is the difference between ULIP and ELSS?

Investors who choose ELSS cannot choose a different fund or alternative asset allocation because it is a required equity fund. A ULIP, on the other hand, is an insurance plan that invests in funds and allows investors to select the kinds of funds they want to buy into. They may even decide to change their minds later on and invest in a different kind of fund.

What is the difference between ULIP and PPF?

Due to the expense, ULIP investments are less common than PPF and mutual fund investments. Unit-linked insurance policies are more alluring than mutual fund investments and PPF because to the tax advantages they offer.

Additionally, insurance protection plans for ULIPs guarantee investment returns. ULIPs could be a fantastic investment option for building your retirement corpus, but it must be done carefully.

What is the difference between ULIP and Traditional Life Insurance?

Traditional life insurance plans are known as conventional plans. They often invest in low-risk options with guaranteed returns and provide announced bonuses and guaranteed maturity funds. ULIPs provide you with the freedom to invest according to your risk tolerance, financial obligations, and convenience.

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

ULIP Benefits You Can Avail from Early Investing

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

Why Should You Invest in Term Insurance And ULIP?

Rate of Interest on Different Investment Plans in India

Everything You Must Know About ULIP Riders

ULIP Plan as a Gift

What Is Financial Planning?

What is Money Management? Definition & Example

Different Types of Endowment Plans

What are the Best Investment Options for Students in India?

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

Do You Know the Difference Between Savings and Investment?

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

What is the Importance of Saving Money?

Why Are ULIPs Called Flexible Investments?

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

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

Endowment Plan vs Fixed Deposit?

Learn About Safe Investments with High Returns in India

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

Receiving regular payouts at various stages of life

Learn About Safe Investments with High Returns in India

How to Manage Your Portfolio Like a Professional?

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

Corporate Bonds: Meaning, Types & Benefits

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

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

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

Are Gains from ULIP Sale Taxable?

6 Important Tips to Maximize Your Gains with ULIP Investments

ULIP NAV Meaning & How is the Return Calculated in ULIP

Best Investment Options to Cover Your Child's Education

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

यूलिप के फायदे (Benefits of ULIP in Hindi)

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

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

What are Some of the Safest Investment Options in India?

Safe Investment Options with High Returns for FY 2018-19

What are the Best Investment Options For Females?

Things to Know Before Buying an Endowment Plan

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

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

Early Investing and the Power of Compounding

Investment Options for NRIs in India

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

Which are the Best ULIP Plans in India for Children?

How Do One-Time Investment Plans Work?

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

How to Cancel ULIP Policy?

Can ULIP Help in Achieving Short-Term Financial Goals?

Top 10 Investment Plans Available in India

Best Guaranteed Returns Investment Options to Meet your Financial Goals

Building wealth through regular investing

What is Direct Investment and its Types?

8 Charges in ULIP That You Must Know

Why Should Parents Invest in Endowment Plan?

How To Track ULIP Performance?

Are Money Back Policies Helpful? A Complete Guide

How to Plan Savings from Salary?

ULIPs: Suitable for all

Important Questions You Must Ask Yourself When Buying a ULIP Plan

How to Increase Net Worth Along with Family Protection

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

Importance of Portfolio Management

Best Investment Options in India in 2022

Difference Between ULIP and Endowment Plan?

How To Diversify Portfolio In 2023?

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

Why Should I Invest in ULIP?

What are Financial Assets & their types?

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

Can ULIP Policy be Transferred?

ULIP as an Investment for Your Child

Short Term and Long Term ULIP Plans for Wealth Creation

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

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

Is the ULIP Policy Surrender Value Taxable?

Top 10 Investment Strategies to Create Wealth

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

Top 5 Investment Options in 2022 for Healthy Returns

Why are ULIPs One of the Best Tax Saving Instruments?

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

Which is a Better Investment - Mutual Funds Or ULIP?

ULIPs Investment – A Boon or Bane?

Planning Financial Goals and Objectives of Financial Planning

Long Term Savings Plan - Best Savings Investment Plans in India

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

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

What is the Time Value of Money (TVM)?

Best One-Time Investment Plans in India

How to Use Recurring Investment Strategies to Build Wealth?

How To Invest Money In ULIP?

Factors Affecting Stock Markets

What is SIP Calculator, And How Does it Work?

How Does an Endowment Plan Work?

Successful Financial Planning for Urban Women

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

Top 5 Principles That Need to be Followed for Wealth Creation

Benefits of ULIP as a Child Insurance Plan

ULIP vs FD - Which is Better and Why?

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

Difference Between Guaranteed Savings Plan and ULIP

यूलिप के फायदे और नुकसान क्या हैं?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

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

8 Important Tips to Maximize Gains with ULIP Investments

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

What are Mutual Funds?

What are the Advantages and Disadvantages of ULIP?

Investments Options to Buy a house in India

How to Start Saving Money in 10 Simple Ways?

What are the Best Investment Options for Young Adults?

How to Manage Inheritance Money?

What is a Savings Plan and What are is Benefits?

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

What is ULIP Plan, and How Does it Work?

Why Should You Build an Emergency Fund?

What is ULIP Renewal?

Savings Plan for Grandchildren

Asset Allocations in ULIP - Know the Top Benefits

Are Investment Returns Guaranteed in a ULIP?

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

How to Plan your Investment to Achieve Periodic Financial Goals?

How to Make Your Financial Portfolio?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Creating a second source of income with life insurance

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

What are Index Funds and How Do They Work

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

What are Tax-Deferred Savings Plans?

What is ULIP and Its Benefits?

What is Equity Mutual Funds: Meaning, Types & Benefits

Difference Between Passive and Active Investing

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

Customising investments to manage your wealth

4 Benefits of ULIP Fund-Switching Feature

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

How to Calculate Your ULIP Returns?

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

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

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

वित्तीय संपत्तियां और उनके प्रकार