Short Term and Long Term ULIP Plans for Wealth Creation
Close
Close

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

Close

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.

Short Term and Long Term ULIP Plans for Wealth Creation

Know when investing in short term and long term ULIPs are important. Get tax benefits, quick income, long term savings, and diversify your investment portfolio.

  • Apr 29, 2022
  • 3,213 Views

Investment may mean different things for different people. And when you talk of investment, most people are now interested in modern investment options like Unit Linked Insurance Plans or ULIP, as they are highly flexible and can easily help you achieve your financial objective. However, in the investment world, it is believed that ULIPs are only a good long term investment plan. But, if you check the features of long term investment vs short term investment plans, you will realize that by choosing the best ULIP plans in India, you can also gain short term benefits with its help.

Given the flexibility of ULIP and other features that it offers, you can plan on using them as both a short term or a long term investment plan as per your financial goals. But, before you proceed to opt for ULIPs, it is advised that you must understand the difference between short term investment and long term investment goals and what options do ULIPs offer you to meet those goals. Additionally, you must also consider important factors like risk profile, policy tenure, your financial duties and commitments, and ULIP plan charges.

So, before taking you over the key difference between short-term and long-term investments, it is important to understand the benefits of short-term and long-term ULIP investment.

Long Term Investment vs. Short Term Investment

Finding the right ULIP policy for your financial goal can be tricky. So, before you begin the search for the best ULIP policy in 2022, you must do your part of the research by using free online ULIP tools like ULIP premium calculator, ULIP return calculator, and ULIP return calculator for say 5 to 6 years. This will help you with the mathematics around the ULIP policies and help you understand the basic difference between short term investment and long term investment.

Benefits of Short Term ULIPs

As a ULIP policyholder, you can reap multiple benefits. Although, when compared as short term vs. long term investment, most people take ULIP as a long term investment option. However, if you manage your ULIP policy wisely and choose the policy according to your financial goal, you can also leverage short term benefits from ULIPs.

Here are a few short terms vs long term benefits, key points, and differences of ULIPs:

Motivates savings habits

When you talk about wealth creation, developing a habit of regular savings is an important element supporting it. Moreover, ULIPs have a minimum lock-in period of 5-years. So, even as a short term investment, paying premiums for a span of 5-years can inculcate a good habit of saving money in a disciplined manner.

Motivates savings habits

When you talk about wealth creation, developing a habit of regular savings is an important element supporting it. Moreover, ULIPs have a minimum lock-in period of 5-years. So, even as a short term investment, paying premiums for a span of 5-years can inculcate a good habit of saving money in a disciplined manner.

Market linked returns

As ULIPs allow you to deal directly with the market linked funds, it is suggested to keep invested for a longer duration to yield maximum returns.

Security

ULIP, as a modern investment tool, was designed for clubbing both insurance and investment in one single policy. So if you have opted for ULIP, you get the benefits of life insurance and wealth creation opportunities.

Flexibility enablement

ULIP policies are well-known for their flexibility. They offer you a wide range of options to pick from. In addition to this, they also allow you to make changes to the investment portfolio as and when you want. In ULIP, the policyholder is the master of their fund.

So if you are aiming to invest in ULIP for short term, you can try to focus on making more money from your investment by micromanaging this as they are under your control, unlike other investment policies.

Flexibility enablement

You can take tax benefits annually no matter how short or long you remain invested in ULIPs, under sections 80C and 10(10D) of the IT act.

There are various other advantages of ULIPs that make them one of the best policies to opt for and help you identify long term investment vs. short term investment-related goals.

In this policy, the investment risk in the investment portfolio is borne by the policyholder.

Kotak e-Invest

Download Brochure

Features

  • Return of Mortality Charges*$
  • Enhanced Protection
  • Multiple Plan Options
  • Zero Premium Allocation Charges
  • Tax Savings^

Ref. No. KLI/22-23/E-BB/521

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Are Money Back Policies Helpful? A Complete Guide

What is a Savings Plan and What are is Benefits?

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

What is ULIP Renewal?

Benefits of ULIP as a Child Insurance Plan

Building wealth through regular investing

Safe Investment Options with High Returns for FY 2018-19

What are Some of the Safest Investment Options in India?

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

Why Should You Invest in Term Insurance And ULIP?

Importance of Portfolio Management

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

How to Increase Net Worth Along with Family Protection

How To Invest Money In ULIP?

What is the Importance of Saving Money?

Difference Between Passive and Active Investing

Customising investments to manage your wealth

Best Investment Options in India in 2022

What is better - Guaranteed Savings Plan or Fixed Deposit?

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

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

Top 5 Principles That Need to be Followed for Wealth Creation

What are Tax-Deferred Savings Plans?

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

ULIP Plan as a Gift

Best Guaranteed Returns Investment Options to Meet your Financial Goals

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

What are the Best Investment Options For Females?

How Does an Endowment Plan Work?

Difference Between Guaranteed Savings Plan and ULIP

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

Planning Financial Goals and Objectives of Financial Planning

What is Money Management? Definition & Example

Can ULIP Help in Achieving Short-Term Financial Goals?

Long Term Savings Plan - Best Savings Investment Plans in India

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

यूलिप के फायदे (Benefits of ULIP in Hindi)

What are Mutual Funds?

Rate of Interest on Different Investment Plans in India

Which is a Better Investment - Mutual Funds Or ULIP?

Early Investing and the Power of Compounding

How to Plan your Investment to Achieve Periodic Financial Goals?

How To Diversify Portfolio In 2022?

How to Plan Savings from Salary?

Endowment Plan vs Fixed Deposit?

4 Benefits of ULIP Fund-Switching Feature

ULIP as an Investment for Your Child

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

Important Questions You Must Ask Yourself When Buying a ULIP Plan

ULIPs Investment – A Boon or Bane?

Best Investment Options to Cover Your Child's Education

Things to Know Before Buying an Endowment Plan

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

How to Make Your Financial Portfolio?

ULIP vs FD - Which is Better and Why?

How to Use Recurring Investment Strategies to Build Wealth?

Learn About Safe Investments with High Returns in India

How to Cancel ULIP Policy?

What is the Time Value of Money (TVM)?

Why Should You Build an Emergency Fund?

Do You Know the Difference Between Savings and Investment?

8 Important Tips to Maximize Gains with ULIP Investments

Best One-Time Investment Plans in India

Savings Plan for Grandchildren

Receiving regular payouts at various stages of life

Can ULIP Policy be Transferred?

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

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

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

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

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

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Different Types of Endowment Plans

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

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

What are the Best Investment Options for Young Adults?

Why Are ULIPs Called Flexible Investments?

ULIP Benefits You Can Avail from Early Investing

Are Investment Returns Guaranteed in a ULIP?

Top 9 Investment Plans Available in India

Learn About Safe Investments with High Returns in India

Investments Options to Buy a house in India

How to Start Saving Money in 10 Simple Ways?

Investment Options for NRIs in India

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

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

Asset Allocations in ULIP - Know the Top Benefits

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

Which are the Best ULIP Plans in India for Children?

How to Manage Inheritance Money?

Top 10 Investment Strategies to Create Wealth

How Do One-Time Investment Plans Work?

What are the Best Investment Options for Students in India?

How to Manage Your Portfolio Like a Professional?

Successful Financial Planning for Urban Women

Why are ULIPs One of the Best Tax Saving Instruments?

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

ULIP NAV Meaning & How is the Return Calculated in ULIP

Why Should I Invest in ULIP?

Why Should Parents Invest in Endowment Plan?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

How To Track ULIP Performance?

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

Top 5 Investment Options in 2022 for Healthy Returns

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

Are Gains from ULIP Sale Taxable?

Creating a second source of income with life insurance

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

What is Direct Investment and its Types?

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

What are Financial Assets & their types?

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

Factors Affecting Stock Markets