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.

Different Types of ULIP Investments in India

Unit Linked Insurance Plans (ULIPs) are a type of insurance-cum-investment product in India that provide insurance and investment benefits to policyholders. Read ahead to know all about it.

  • Nov 17, 2022

Unit-Linked Insurance Plan (ULIP) is a type of life insurance that invests your money over time to create wealth for the future. The investment is funded using high-grade market securities, including stock and debt. As a consequence, ULIPs are an excellent addition to your investment portfolio.

    Key takeaways

  • In a ULIP, the premium paid by the policyholder is divided into two parts, i.e., the insurance component and the investment component.
  • Some ULIPs invest in a blend of equities and debt assets to reduce risk.
  • Liquid assets ULIP plans are ideal for reaching short-term financial objectives since they invest in highly liquid money market products.
  • Cash deposits, term deposits, and market funds are all examples of relatively low-risk cash fund vehicles used by some types of ULIP Plans.

Due to fund alternatives that provide steady returns, low levels of risk, or both, ULIP plans are becoming more popular. Many insurance banks, companies, and financial organizations offer these plans in India, allowing policy purchasers to select from various alternatives. Consequently, your money will generate significant returns and life insurance cover for your loved ones during the vesting period.

What is a Unit-Linked Insurance Plan?

Unit-linked insurance plan (ULIP) is a type of life insurance plan that offers policyholders the dual benefit of insurance coverage and investment opportunities. It is a unique product that offers a wide range of investment options, allowing policyholders to invest in various funds and securities, including stocks, bonds, and mutual funds.

In a ULIP, the premium paid by the policyholder is divided into two parts, i.e., the insurance component and the investment component. The insurance component provides the policyholder with a life cover, while the investment component is invested in various funds, as per the policyholder’s choice. The returns from these investments are then credited to the policyholder’s account, which can be used for various purposes such as education, retirement, or any other long-term financial goals.

Also Read: What is ULIP Plan?

Types of Unit Linked Insurance Plan (ULIP) Investments in India

Unit Linked Insurance Plans (ULIP) are an innovative and comprehensive insurance product that combines the benefits of insurance and investment in a single plan. ULIPs are popular among investors as they offer a range of investment options that can suit their financial goals and risk appetite.

In India, there are various types of Unit Linked Insurance Plan investments available in the market. Here are some of the popular ULIP investments in India.


The fund from the investors is used to buy equity shares in one or more firms. Equity investments are significantly riskier since they are directly linked to financial market movements. However, on the other side, the potential for expansion is greater. As a result, ULIPs are appropriate for risk-averse individuals with a high-risk tolerance.


The investment of funds in debt instruments such as corporate bonds, government bonds and securities, debentures, and fixed-income bonds are various ULIP plans. While these instruments have a medium to low-risk profile, they also have a moderate return profile.

Balanced Funds

Some ULIPs invest in a blend of equities and debt assets to reduce risk. The risk is successfully spread among high-risk and low-risk investment alternatives by assigning one portion of the money to equities and the other to fixed-income debt securities. As an outcome, the returns provided by balanced funds are much more consistent and less volatile than those offered by pure stock funds.

Liquid Assets

Liquid assets ULIP plans are ideal for reaching short-term financial objectives since they invest in highly liquid money market products, including certificates of deposit (CD), treasury bills, and call money. Unlike other ULIPs, these liquid funds have a shorter maturity time, usually weeks to months. In addition, most of these ULIP investments have high credit ratings, making them a secure investment option for those with low-risk tolerance.

Funds in Cash

Cash deposits, term deposits, and market funds are all examples of relatively low-risk cash fund vehicles used by some types of ULIP Plans. While the earnings on these ULIPs are the lowest, the risk factor is also the minimum. As a result, they’re a suitable option for risk-averse investors who wish to minimize their risk as much as possible.

Guaranteed And Non-Guaranteed ULIPs

Guaranteed ULIPs are designed to protect your money. They limit their exposure to market risk by investing just a tiny portion of the charge in shares. Non-guaranteed ULIPs, are meant to help investors build wealth, allowing them to support a bigger portion of their payments in the financial market. However, non-guaranteed ULIPs, are more volatile.

ULIP types of wealth creation

Based On Life Stage Vs Not Based On Life Stage

As you get older, these programs, which are your financial assistants, shift the investments among various risk levels. The plan is aware that risk appetite is strongest in youth and that priorities vary over time. Investments will alternate between stock and debt instruments in varying ratios and at various times.

Regular Premium Vs Single Premium

Everyone has the ability to pay a premium. Regular premium plans divide and spread the premium payments over regular intervals, while single premium plans call for a single premium payment to be made at the start of the plan.

To Make Retirement Plans

Retirement corpus building ULIPs can save you if your regular source of income quits and you’ve reached the end of your working years. There are particular ULIP programs created to care for you in your later years. After the plan expires, they offer regular payouts, and you will get sufficient funds to live comfortably.

To Handle Personal or Medical Emergencies

Occasionally, there are significant expenses that we cannot avoid., Emergencies like medical problems, accidents, legal costs, settlement amounts, debt, etc., can truly hit you hard when you least expect them. Some programs assist you in creating a corpus that you can utilize in place of a health insurance policy. The plan enables you to partially withdraw from your greater maturity corpus to cover the urgent expense if you are in the hospital and require rapid cash.

Wrapping Up

ULIPs are fantastic insurance products that provide coverage and allow you to maximize your investments over time. You can purchase different types of ULIP plans to meet various needs. Such plans not only assist you in ensuring that your children receive a high-quality education, but they also assist you in creating a corpus so that you may live a secure and comfortable life after retirement. ULIP is a fantastic instrument for folks who wish to protect themselves while increasing their funds. You may also select the funds you want to put your money into based on your future needs and financial capabilities.

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

Balancing Investment Between Risk and Return on Investments

What is a Savings Plan and What are is Benefits?

Difference Between Passive and Active Investing

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

Asset Allocations in ULIP - Know the Top Benefits

What are the things to consider before buying ULIPs?

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

What are the Best Investment Options For Females?

8 Charges in ULIP That You Must Know

Creating a second source of income with life insurance

How To Invest Money In ULIP?

What are Some of the Safest Investment Options in India?

What is a Bond Fund and How It Works?

Safe Investment Options with High Returns for FY 2018-19

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

Top 11 Investment Plans Available in India

Why Should I Invest in ULIP?

Difference Between Linked and Non-Linked Insurance Plans

ULIP As An Investment Option For Senior Citizens

यूलिप के फायदे (Benefits of ULIP in Hindi)

What is Fund Value in ULIP?

How has ULIP Grown Over the Last 3 years?

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

What is ULIP and Its Benefits?

Can You Have ULIP Plan and Health Insurance Plan Both?

Can NRIs Invest in ULIP Plans Offered in India?

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

Top 5 Investment Options in 2022 for Healthy Returns

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Do You Know the Difference Between Savings and Investment?

How to Start Saving Money in 10 Simple Ways?

What Is Financial Planning?

Rate of Interest on Different Investment Plans in India

What is Direct Investment and its Types?

Can ULIP Policy be Transferred?

Is Life Insurance Investment Worthy Enough

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

How to Manage Your Portfolio Like a Professional?

5 Reasons to Have a Child Education Plan

Difference Between Guaranteed Savings Plan and ULIP

What are Financial Assets & their types?

How to Use Recurring Investment Strategies to Build Wealth?

What are the Best Investment Options for Young Adults?

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

What is Lock-In Period in ULIPs?

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

Are Gains from ULIP Sale Taxable?

Best Investment Plans For You To Invest In 2023

Why are ULIPs One of the Best Tax Saving Instruments?

ULIP Vs Life Insurance Plan Know the Difference

Best Investment Options in India in 2022

Are Money Back Policies Helpful? A Complete Guide

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

ULIP Plan or Traditional Insurance Plans - Which is better?

Customising investments to manage your wealth

Know How to Invest at Every Age for Larger Returns

Top 10 Investment Strategies to Create Wealth

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

Planning For Children's Future

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

Successful Financial Planning for Urban Women

ULIP NAV - Everything You Need to Know

ULIP Investment Benefits You Must Know

ULIPs Investment – A Boon or Bane?

वित्तीय संपत्तियां और उनके प्रकार

What is ULIP Plan, and How Does it Work?

Which is a Better Investment - Mutual Funds Or ULIP?

Long Term Savings Plan - Best Savings Investment Plans in India

Best Investment Options to Cover Your Child's Education

Do ULIPs Give Good Returns On Investments?

What are the Best Investment Options for Students in India?

यूलिप के फायदे और नुकसान क्या हैं?

Will You Need to Withdraw or Surrender Money From ULIP

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

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

ULIP Frequently Asked Questions (FAQ) - Kotak Life

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

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

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

ULIP Plan as a Gift

Can You Invest in Both Term Insurance and ULIP?

Tax-Deferred Savings Plan: Overview, Benefits, Works

What is the Time Value of Money (TVM)?

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

How To Track ULIP Performance?

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

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

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

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

ULIP Benefits You Can Avail from Early Investing

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

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

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

What is Equity Mutual Funds: Meaning, Types & Benefits

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

What is ULIP Renewal?

Are Investment Returns Guaranteed in a ULIP?

Planning Financial Goals and Objectives of Financial Planning

ULIPs: Suitable for all

FAQs on Taxation of ULIPs

Is ULIP A Good Investment Option?

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

Top ULIP Myths That You Must Stop Believing In

Can I Surrender My ULIP Policy after 2 Years?

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

Investments Options to Buy a house in India

Learn About Safe Investments with High Returns in India

Endowment Plan vs Fixed Deposit?

Why Should You Build an Emergency Fund?

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

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

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

How Can ULIP Plan be as an Investment for Your Child

Early Investing and the Power of Compounding

Here's Myths on Investments in ULIP Plans

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

ULIP Withdrawal Conditions - Before and After 5 years

6 Important Tips to Maximize Your Gains with ULIP Investments

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

What is Partial Withdrawal in ULIPs?

Can ULIP Help in Achieving Short-Term Financial Goals?

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

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

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

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

What are the Minimum and Maximum Investments in ULIP?

How Safe is it to Invest in ULIP plans?

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

Investment Options for NRIs in India

Why ULIP Should Be a Part of Your Investment Portfolio?

Develop an investing plan

ULIP Plans Riders You Should Know About

Difference Between ULIP and Endowment Plan?

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

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

Learn About Safe Investments with High Returns in India

How ULIPs can help you achieve your financial goals

Benefits of ULIP as a Child Insurance Plan

All you need to know about claiming maturity proceeds from Ulip

Know Why You Should Stay Invested in Your ULIP Plan

Receiving regular payouts at various stages of life

All you need to know about Fund Switching in ULIPs

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

How to Manage Inheritance Money?

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

5 Reasons to Buy ULIPS for a Financially Secured Future

Why Should You Invest in NPS?

Savings Plan for Grandchildren

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

8 Important Tips to Maximize Gains with ULIP Investments

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

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

Which are the Best ULIP Plans in India for Children?

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

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

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

यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

Importance of Portfolio Management

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

How to Increase Net Worth Along with Family Protection

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

ULIP vs FD - Which is Better and Why?

Why Are ULIPs Called Flexible Investments?

How to Save Money from Salary?

How Do One-Time Investment Plans Work?

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

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

How to Plan your Investment to Achieve Periodic Financial Goals?

How to Cancel ULIP Policy?

How to Set Financial Goals for Your Future

Top 5 Principles That Need to be Followed for Wealth Creation

What is SIP Calculator, and How it Works?

Planning For Son or Daughter's Wedding

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

Is the surrender value of ULIP taxable?

Corporate Bonds: Meaning, Types & Benefits

How to Calculate Your ULIP Returns?

What are the Advantages and Disadvantages of ULIP?

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

What are ULIPs and their Types?

What is Savings and the Importance of Saving Money

Best One-Time Investment Plans in India

यूलिप और उनके प्रकार क्या हैं?

What are Index Funds, and How Do They Work?

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

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

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

What is Money Management? Definition & Example

यूनिट लिंक्ड इंश्योरेंस प्लान में लॉयल्टी एडिशन कैसे काम करते हैं

How to Build a Strong Financial Foundation For the Future?

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

How to Make Your Financial Portfolio?

Building wealth through regular investing

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

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

Is ULIP a Complex Financial Product?

Factors Affecting Share Prices In The Stock Market

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