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


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 to Manage Inheritance Money?

A guide on how to manage inheritance money and make profitable investments to ensure that your wealth grows consistently.

  • Jul 22, 2022

Inheritance money can be a boon as well as a bane for you. Along with offering readily available cash, you also get specific responsibilities to manage the funds efficiently. Here is a guide on how to manage inheritance money?

How to Manage a Large Inheritance?

Don’t Assume You’ll Get It

In case you are expecting a large inheritance at a point in time one day, then remember you have not received it yet, so don’t count on it. Things can change with time. For example, your beneficiary or relative might incur significant medical expenses at the end of their life or even decide to give a large share to a charity that can affect the amount you receive as an inheritance. This is a good reason for you to get your own financial life, invest for the future, avoid debts and not rely on the windfalls that may or may not arrive.

Take it Slow

When you receive an inheritance, don’t take up the decisions instantly. Coping with grief and adding money to your balance can complicate things. Moreover, your action depends upon what form your inheritance takes. If it’s in the form of cash, you might want to park it in a safer place for a while. Whereas, if you receive it in the form of assets, retirement account, real estate etc., you will need to work with the executor to get everything properly transferred to your name.

Therefore, it’s wise to take time and not decide in a hurry what to do with the amount.

Seek Advice if Required

Depending upon the amount involved and your comfort in making the financial decisions, you might want to pay for some guidance from the experts. A financial planner can help you know what is best for you and let you know how to handle money in the short-term and long-term financial plans. A planner can also help you understand how to deal with any asset that you have inherited.

Pay-Off Debts

One of the essential uses of inherited money is that you can pay off your debts quickly, exceptionally high-interest debt such as credit cards or student loans. If you feel more secure with a paid-off mortgage, by all means, you can use the inheritance amount for this reason. Paying-off debts on time will help to free you up from the financial burden.

Invest the Rest

After paying off the debts, you can decide what to do with the remaining money. Again, there is no need to take immediate action against it, with the help of a financial planner, any advisor, or on your own. Inherited money is like the money you’ve earned for yourself in terms of investing principles. Consider it in your entire portfolio if you want to keep the inheritance money separate for sentimental reasons. Aim to be adequately diversified among a variety of investments with different levels of risk.

Know more about Best Investment Options in India in 2022

It is advised that you make investments towards: Wealth creation, family’s financial future and your little one’s future.

You can do this by investing in plans like ULIP, Term Plan and Savings Plan. ULIP will help you plan your finances better, ensure a certain life cover and remaining part towards investment. Term insurance will secure your family’s future. Savings plan will give you guaranteed returns after a pre-defined time frame.

Understand Tax Implications

Until you inherit a great deal of money, you will not have to worry about the taxes. However, there is are certain types of asset classes that do have tax implications. Therefore, it is crucial that you thoroughly understand tax implications before restlessly investing the large inherited amount.

Splurge if you want, but don’t go crazy

If you want to spend the inherited money on yourself or your loved ones, you can. It’s your money now. But do remember when it’s gone, it’s gone; therefore, use the money sensibly.

If you receive a large inheritance and you use it sensibly, then you can make a massive profit out of it. Moreover, it can bring a positive difference in your life. But remember not to make rushed decisions and take expert advice if required. Instead, invest in yourself and various funds. You can even buy multiple life insurance plans or ULIPs that offer both financial and health insurance coverage.

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

Different Types of Endowment Plans

Difference Between Passive and Active Investing

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

Rate of Interest on Different Investment Plans in India

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

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

How to Calculate Your ULIP Returns?

What are the Best Investment Options for Young Adults?

What is the Importance of Saving Money?

Are Money Back Policies Helpful? A Complete Guide

Importance of Portfolio Management

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

ULIP Plan as a Gift

ULIP NAV Meaning & How is the Return Calculated in ULIP

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

यूलिप के फायदे (Benefits of ULIP in Hindi)

What is SIP Calculator, And How Does it Work?

ULIP vs FD - Which is Better and Why?

4 Benefits of ULIP Fund-Switching Feature

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

What is Equity Mutual Funds: Meaning, Types & Benefits

Difference Between Guaranteed Savings Plan and ULIP

How to Cancel ULIP Policy?

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

Investment Options for NRIs in India

How to Make Your Financial Portfolio?

How to Plan your Investment to Achieve Periodic Financial Goals?

Early Investing and the Power of Compounding

8 Important Tips to Maximize Gains with ULIP Investments

What is ULIP Plan, and How Does it Work?

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

What is Money Management? Definition & Example

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

What is Direct Investment and its Types?

Which are the Best ULIP Plans in India for Children?

Top 10 Investment Strategies to Create Wealth

What is ULIP and Its Benefits?

Best One-Time Investment Plans in India

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

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

Best Investment Options in India in 2022

What is the Time Value of Money (TVM)?

Learn About Safe Investments with High Returns in India

Factors Affecting Stock Markets

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

Benefits of ULIP as a Child Insurance Plan

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

Things to Know Before Buying an Endowment Plan

What are Mutual Funds?

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

How Do One-Time Investment Plans Work?

Corporate Bonds: Meaning, Types & Benefits

Savings Plan for Grandchildren

Why Should You Build an Emergency Fund?

How to Start Saving Money in 10 Simple Ways?

Long Term Savings Plan - Best Savings Investment Plans in India

How to Increase Net Worth Along with Family Protection

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

Are Investment Returns Guaranteed in a ULIP?

Can ULIP Help in Achieving Short-Term Financial Goals?

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

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

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Planning Financial Goals and Objectives of Financial Planning

Learn About Safe Investments with High Returns in India

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

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

What is better - Guaranteed Savings Plan or Fixed Deposit?

Top 10 Investment Plans Available in India

ULIP Benefits You Can Avail from Early Investing

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

Creating a second source of income with life insurance

Receiving regular payouts at various stages of life

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

Safe Investment Options with High Returns for FY 2018-19

Investments Options to Buy a house in India

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

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

What are Index Funds and How Do They Work

Top 5 Principles That Need to be Followed for Wealth Creation

How To Invest Money In ULIP?

Why Are ULIPs Called Flexible Investments?

How to Plan Savings from Salary?

Why are ULIPs One of the Best Tax Saving Instruments?

Building wealth through regular investing

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

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

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

What are Financial Assets & their types?

Endowment Plan vs Fixed Deposit?

How Does an Endowment Plan Work?

ULIP as an Investment for Your Child

Important Questions You Must Ask Yourself When Buying a ULIP Plan

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

How To Track ULIP Performance?

What are the Best Investment Options for Students in India?

Do You Know the Difference Between Savings and Investment?

ULIPs Investment – A Boon or Bane?

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

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

How to Manage Your Portfolio Like a Professional?

Why Should Parents Invest in Endowment Plan?

Why Should I Invest in ULIP?

6 Important Tips to Maximize Your Gains with ULIP Investments

What are the Best Investment Options For Females?

Top 5 Investment Options in 2022 for Healthy Returns

What is ULIP Renewal?

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

Short Term and Long Term ULIP Plans for Wealth Creation

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

How To Diversify Portfolio In 2022?

Can ULIP Policy be Transferred?

Best Investment Options to Cover Your Child's Education

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

Which is a Better Investment - Mutual Funds Or ULIP?

Successful Financial Planning for Urban Women

Best Guaranteed Returns Investment Options to Meet your Financial Goals

Are Gains from ULIP Sale Taxable?

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

Why Should You Invest in Term Insurance And ULIP?

Customising investments to manage your wealth

Asset Allocations in ULIP - Know the Top Benefits

What is a Savings Plan and What are is Benefits?

How to Use Recurring Investment Strategies to Build Wealth?

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

What are Some of the Safest Investment Options in India?

What are Tax-Deferred Savings Plans?