Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak Guaranteed Fortune Builder

A plan that offers guaranteed income for your future goals. Know more

Kotak e-Term

Protect your family's financial future. 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 life cover. Know more

Kotak e-Invest

Insurance and Investment in one plan. 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.

Is ULIP A Good Investment Option?

A ULIP is an insurance plan that provides insurance coverage while also producing profits through investment sources. Read this article to understand is ULIP a good investment.

  • Mar 07, 2022

Financial planning entails much more than the amount of money you earn or save each month. While most of us have been taught to work hard and save a certain amount of our earnings, our knowledge about the subject should not end there because your ability to invest in the right places impacts the nature of your financial portfolio.

Many people are unsure where to put their hard-earned money to increase their wealth in the long run substantially. In recent years ULIP or Unit Linked Insurance Plans have caught their interest. If you’re interested in learning more about this financial investment tool, we’ll walk you through the nitty-gritties and help you decide if ULIP plans are a smart investment choice.

Basics of ULIP or Unit Linked Insurance Plan

ULIP is not an insurance plan or an investment plan but a hybrid of the two. A ULIP plan is one of the most popular financial instruments available to investors. They are insurance plans that provide insurance coverage while also producing profits through investment sources. In a manner similar to mutual funds, the insurance provider launches a new plan and encourages investors to participate. Further, ULIP plans invest in stocks, commodities, and debt instruments. If you’re looking for the best ULIP plans, make sure you examine the following features and benefits of a ULIP plan carefully:

The Lock-In Period

Since ULIP plans have a five-year lock-in period, they are the greatest option for developing a steady investment habit as they are long-term investments. The lock-in period is usually specified by the policy’s grant date, and the premium must be paid monthly or yearly in one lump sum. In addition, following the 5-year lock-in term, the policyholder has the option of cancelling the insurance and withdrawing assets as needed.

Switching Funds & Flexibility

ULIP plans are particularly flexible since they allow you to transfer funds at any time during the policy’s term. It is, in fact, the only financial instrument that can be used in so many different ways. It allows the insured to move all or part of their investment across funds. Depending on your needs and the fund’s performance, you can pick any of them.

Tax Exemptions

The tax exemption is one of the most significant benefits of ULIP. As per Section 80C of the Income Tax Act, 1961, you can reduce your tax burden by up to ₹1,50,000 if you substantiate your ULIP payments. Additionally, the maturity benefit of ULIPs is tax-free under Section 10 (10D) of the Income Tax Act.

Increased Returns

ULIP is the way to go if you want to make more money than you would with other insurance products if you have a risk appetite for it. This scheme beats all other financial products due to its equity benefit. The premiums you pay are invested in a range of asset types through various funding sources in ULIPs.

Partial Withdrawal

You can always use the partial withdrawal choice offered by Unit Linked Insurance Plans in the case of an emergency. Partially withdrawing funds is normally free of charge. Nevertheless, you should double-check with your insurance carrier.

To summarise, if you wish to profit from many investment sources, look up the best ULIP plans that align with your long-term financial objectives and provide significant returns!

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 You To Invest In 2023

ULIP Vs Life Insurance Plan Know the Difference

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

ULIPs Investment – A Boon or Bane?

ULIP Plan as a Gift

ULIP Benefits You Can Avail from Early Investing

How to Fix the 9 Most Common Financial Problems Your Family is Facing

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

ULIP policy: What happens when you stop paying ULIP policy premium during lock-in period

What is Premium Redirection in ULIPs Plans | ULIP Insurance Plans | Kotak Life Insurance

What is Savings and the Importance of Saving Money

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

Investment Options for NRIs in India

5 Reasons Why ULIP Plans are One of The Best Retirement Planning Instruments

Which are the Best ULIP Plans in India for Children?

FAQs on Taxation of ULIPs

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

What are Some of the Safest Investment Options in India?

Different Types of ULIP Investments in India

How Can ULIPs Help You Plan for Your Child's Future?

Learn About Safe Investments with High Returns in India

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

Customising investments to manage your wealth

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

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

Why Should You Build an Emergency Fund?

Difference Between Passive and Active Investing

Know How to Invest at Every Age for Larger Returns

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

वित्तीय संपत्तियां और उनके प्रकार

How to Cancel ULIP Policy?

How to Make Your Financial Portfolio?

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

How to Increase Net Worth Along with Family Protection

8 Important Tips to Maximize Gains with ULIP Investments

Difference Between Linked and Non-Linked Insurance Plans

How Safe is it to Invest in ULIP plans?

What is ULIP Plan, and How Does it Work?

What is Equity Mutual Funds: Meaning, Types & Benefits

Are Money Back Policies Helpful? A Complete Guide

ULIP Withdrawal Conditions - Before and After 5 years

What are the Minimum and Maximum Investments in ULIP?

Do ULIPs Give Good Returns On Investments?

What are Financial Assets & their types?

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

Learn About Safe Investments with High Returns in India

Best Investment Options to Cover Your Child's Education

What are Fixed Maturity Plans and Why Should I Invest in Them?

What are the Best Investment Options for Students in India?

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

Can ULIP Policy be Transferred?

How and when should you exit from bad-performing ULIP?

Why Are ULIPs Called Flexible Investments?

6 Important Tips to Maximize Your Gains with ULIP Investments

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

8 Charges in ULIP That You Must Know

Creating a second source of income with life insurance

What is the Time Value of Money (TVM)?

How Do One-Time Investment Plans Work?

Can You Have ULIP Plan and Health Insurance Plan Both?

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

ULIP Plan or Traditional Insurance Plans - Which is better?

All you need to know about claiming maturity proceeds from Ulip

ULIPs: Suitable for all

Top 10 Investment Strategies to Create Wealth

Best Investment Options in India in 2022

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

यूलिप के फायदे (Benefits of ULIP in Hindi)

Know Why You Should Stay Invested in Your ULIP Plan

यूलिप के फायदे और नुकसान क्या हैं?

ULIP Frequently Asked Questions (FAQ) - Kotak Life

Can You Invest in Both Term Insurance and ULIP?

Can I Surrender My ULIP Policy after 2 Years?

What are the Advantages and Disadvantages of ULIP?

What are the Best Investment Options for Young Adults?

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

Successful Financial Planning for Urban Women

How to Save Money from Salary?

यूलिप और उनके प्रकार क्या हैं?

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

How to Use Recurring Investment Strategies to Build Wealth?

Factors Affecting Share Prices In The Stock Market

Benefits of ULIP as a Child Insurance Plan

What are the things to consider before buying ULIPs?

What are Index Funds, and How Do They Work?

What Is a Credit Score? Definition, Factors, and Ways to Raise It

What is Lock-In Period in ULIPs?

How to Manage Inheritance Money?

Receiving regular payouts at various stages of life

What Is Social Impact Investing and How Does It Benefit Society?

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

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

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

What is Partial Withdrawal in ULIPs?

How to Create Short-Term and Long-Term Wealth with ULIPs - Kotak Life

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

What is ULIP Renewal?

ULIP Investment Benefits You Must Know

Asset Allocations in ULIP - Know the Top Benefits

Will You Need to Withdraw or Surrender Money From ULIP

ULIP Tax Benefits: यहां निवेश करने पर मिलते हैं 5 बड़े फायदे

What is Money Management? Definition & Example

Corporate Bonds: Meaning, Types & Benefits

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

How To Invest Money In ULIP?

What Happens If I Stop Paying My ULIP Policy Premium After Paying the First Premium? Will I Still Get The Return?

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

Safe Investment Options with High Returns for FY 2018-19

Long Term Savings Plan - Best Savings Investment Plans in India

Can NRIs Invest in ULIP Plans Offered in India?

Can ULIP Help in Achieving Short-Term Financial Goals?

First Job? Here are Some Tips on How to Manage Finances

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

Tax-Deferred Savings Plan: Overview, Benefits, Works

What is the Estimated Return Percentage on ULIP? Do Investors Get Compound Interest?

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

What is Fund Value in ULIP?

How Can ULIP Plan be as an Investment for Your Child

What is ULIP and Its Benefits?

5 Reasons to Buy ULIPS for a Financially Secured Future

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Here's are the uses of ULIP your must be aware of

Are Investment Returns Guaranteed in a ULIP?

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

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

How To Track ULIP Performance?

Planning Financial Goals and Objectives of Financial Planning

ULIP vs FD - Which is Better and Why?

Here's Whether You Should Link ULIP Plan with your Term Insurance

Planning For Son or Daughter's Wedding

What is a Bond Fund and How It Works?

Is Life Insurance Investment Worthy Enough

Rate of Interest on Different Investment Plans in India

Is ULIP a Complex Financial Product?

How to Manage Your Portfolio Like a Professional?

How to Set Financial Goals for Your Future

What are ULIPs and their Types?

What Is Financial Planning?

ULIP As An Investment Option For Senior Citizens

Is the surrender value of ULIP taxable?

Importance of Portfolio Management

Will AI be Your Future Financial Adviser? What Role Will Humans Play?

Early Investing and the Power of Compounding

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

What are the Best Investment Options For Females?

यूनिट लिंक्ड इंश्योरेंस प्लान में लॉयल्टी एडिशन कैसे काम करते हैं

Develop an investing plan

Are Gains from ULIP Sale Taxable?

What is SIP Calculator, and How it Works?

Difference Between ULIP and Endowment Plan?

Top 5 Investment Options in 2022 for Healthy Returns

Why are ULIPs One of the Best Tax Saving Instruments?

How to Build a Strong Financial Foundation For the Future?

All you need to know about Fund Switching in ULIPs

What is Mutual Funds? | How Mutual Funds Work, Definition

Balancing Investment Between Risk and Return on Investments

How to Calculate Your ULIP Returns?

ULIP Plans Riders You Should Know About

Investments Options to Buy a house in India

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

How to Plan your Investment to Achieve Periodic Financial Goals?

Single Premium ULIP or a PPF - Which One is Better?

Best One-Time Investment Plans in India

Why ULIP Should Be a Part of Your Investment Portfolio?

Top 11 Investment Plans Available in India

5 Reasons to Have a Child Education Plan

Top 5 Principles That Need to be Followed for Wealth Creation

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

Top ULIP Myths That You Must Stop Believing In

Do You Know the Difference Between Savings and Investment?

How to Apply for Death Claim Benefits in ULIPs - Kotak Life

What is a Savings Plan and What are is Benefits?

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

What is Direct Investment and its Types?

Understanding ULIP Risks: What are the Odds of Losing all my Money and Projected Returns?

Savings Plan for Grandchildren

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

Here's Myths on Investments in ULIP Plans

How to Start Saving Money in 10 Simple Ways?

Endowment Plan vs Fixed Deposit?

How has ULIP Grown Over the Last 3 years?

Difference Between Guaranteed Savings Plan and ULIP

ULIP NAV - Everything You Need to Know

Which is a Better Investment - Mutual Funds Or ULIP?

How Increasing Your SIP Every Year Helps You Reach Your Financial Goal Sooner?

यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

How ULIPs can help you achieve your financial goals

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Planning For Children's Future

Why Should I Invest in ULIP?

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

5 Best Long Term Investments To Add To Your Portfolio in 2023

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

Why Should You Invest in NPS?

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

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

4 Rules To Keep In Mind To Secure Your Child’s Future Financially

Building wealth through regular investing