Close
Close

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

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.

ULIP Plan as a Gift

ULIP is an excellent investment option providing dual benefits of investment and an insurance cover. Gift your loved ones an insurance that build wealth and provides insurance cover.

  • Jul 22, 2022
  • 3,328 Views

Are you still confused about the best gift for your loved ones? Is it challenging to choose an anniversary gift that your wife finds flawless and valuable? Or are you planning to give yourself a gift on this birthday? One of the biggest obstacles while selecting the right present is finding something beneficial and meeting the expectations of one at the receiving end. People give various gifts such as clothes, shoes, technical gadgets, pets, cars, etc. But none of these presents will ever increase their value with time. How about a gift that changes their life? For instance, an insurance plan!

An insurance plan provides financial security to the policyholder and their family. But how about adding the advantage of investing in this insurance policy? This is exactly what Unit-Linked Insurance Plan is about. Can the ULIP plan be gifted? Absolutely yes! Keep reading to know more about the ULIP.

What is ULIP?

Unit-Linked Insurance Plan or ULIP is an insurance plan with the added benefits of investment. It is a financial tool that uses a part of your premium to provide insurance cover, while the rest of it is invested in market funds. ULIPs certainly involve a risk factor as the returns depend on market volatility. But with wise and research-backed investing, one can grow wealth with this market-linked insurance plan. Moreover, ULIPs give you complete freedom to choose the funds according to your risk-taking appetite and preferences.

ULIP as a Gift

ULIP is an excellent investment option providing dual benefits of investment and an insurance cover, aided with the following benefits:

1. Flexibility

  • ULIP lets you pay the premiums according to your convenience.
  • You can add a top-up amount to your existing premium to maximize the returns.
  • The sum assured is determined at the beginning of the plan. However, you can increase it according to your requirements at different stages of life, such as marriage, retirement, etc.

2. Transparency

ULIPs provide transparency to the customers through ULIP NAV (Net Asset Value) updates. NAV keeps you updated about the performance of your funds in the market. So you can keep a check regularly and modify your investments accordingly.

3. Fund switching feature

You can choose to invest in equity, debt, or balanced funds which include both equity and debt-based investing. At any point in time, you can switch the funds and modify your investment to reduce the risk (due to market volatility) and gain higher returns overall.

4. Partial withdrawal

Unlike other policies, ULIP offers partial withdrawal after completion of a lock-in period of five years. You can withdraw a certain amount from your account in dire need of money. Hence, ULIPs offer liquidity and protect you from a financial crisis. However, it is advised not to withdraw the amount to gain higher returns unless in the case of an emergency.

5. Tax benefits

Among the prominent features of ULIP, another unmatched advantage is the benefit of taxation.

  •  Under Section 80C,tax benefits are given to the policyholder.
  • Switching funds is tax-free. Hence you can conveniently modify your investment portfolio.
  • Under Section 10 (10D) of the Income Tax Act, the maturity benefit is also tax-free.

Rider benefits

You can make your policy by adding insurance riders to the existing ULIP. Unit Linked accident and disability benefit rider is an example of a rider. Due to this rider, a higher amount is offered to the family in case of the policyholder's accidental death. It also provides life insurance cover in case of disability caused by accident.

Conclusion

A Unit-Linked Insurance Plan can be considered an excellent and reliable long-term investment. ULIP can significantly increase the value of your savings and provide financial security to you and your loved ones. The flexibility to pay premiums, choose funds, add rider benefits, and switch funds according to your needs allow you to attain lucrative returns.

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

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

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

Factors Affecting Stock Markets

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

Importance of Portfolio Management

What is ULIP Renewal?

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

Why are ULIPs One of the Best Tax Saving Instruments?

Are Money Back Policies Helpful? A Complete Guide

What are Financial Assets & their types?

What is the Importance of Saving Money?

ULIP NAV Meaning & How is the Return Calculated in ULIP

Asset Allocations in ULIP - Know the Top Benefits

How to Manage Inheritance Money?

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

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

How to Plan Savings from Salary?

What is Money Management? Definition & Example

Which is a Better Investment - Mutual Funds Or ULIP?

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

How to Plan your Investment to Achieve Periodic Financial Goals?

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

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

Things to Know Before Buying an Endowment Plan

How to Calculate Your ULIP Returns?

Corporate Bonds: Meaning, Types & Benefits

What are the Best Investment Options for Young Adults?

Savings Plan for Grandchildren

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

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

Endowment Plan vs Fixed Deposit?

What are Tax-Deferred Savings Plans?

वित्तीय संपत्तियां और उनके प्रकार

8 Charges in ULIP That You Must Know

Learn About Safe Investments with High Returns in India

Which are the Best ULIP Plans in India for Children?

Can ULIP Help in Achieving Short-Term Financial Goals?

Benefits of ULIP as a Child Insurance Plan

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

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

यूलिप के फायदे (Benefits of ULIP in Hindi)

Customising investments to manage your wealth

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

How Does an Endowment Plan Work?

What is ULIP Plan, and How Does it Work?

What are Index Funds and How Do They Work

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

Top 5 Investment Options in 2022 for Healthy Returns

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

4 Benefits of ULIP Fund-Switching Feature

How to Cancel ULIP Policy?

Safe Investment Options with High Returns for FY 2018-19

Best Investment Options to Cover Your Child's Education

ULIP vs FD - Which is Better and Why?

Difference Between Guaranteed Savings Plan and ULIP

Creating a second source of income with life insurance

How To Diversify Portfolio In 2023?

What are Some of the Safest Investment Options in India?

Building wealth through regular investing

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

How to Increase Net Worth Along with Family Protection

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

Best Investment Options in India in 2022

8 Important Tips to Maximize Gains with ULIP Investments

Everything You Must Know About ULIP Riders

Can ULIP Policy be Transferred?

Best Guaranteed Returns Investment Options to Meet your Financial Goals

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

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

Why Should Parents Invest in Endowment Plan?

What is a Savings Plan and What are is Benefits?

Different Types of Endowment Plans

How to Use Recurring Investment Strategies to Build Wealth?

Is the ULIP Policy Surrender Value Taxable?

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

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

Do You Know the Difference Between Savings and Investment?

How To Track ULIP Performance?

What is Direct Investment and its Types?

Top 5 Principles That Need to be Followed for Wealth Creation

How To Invest Money In ULIP?

Are Gains from ULIP Sale Taxable?

Important Questions You Must Ask Yourself When Buying a ULIP Plan

How to Start Saving Money in 10 Simple Ways?

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

Learn About Safe Investments with High Returns in India

What is ULIP and Its Benefits?

Receiving regular payouts at various stages of life

Rate of Interest on Different Investment Plans in India

How to Make Your Financial Portfolio?

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

Why Should I Invest in ULIP?

Difference Between Passive and Active Investing

Short Term and Long Term ULIP Plans for Wealth Creation

What are Mutual Funds?

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

Investments Options to Buy a house in India

Are Investment Returns Guaranteed in a ULIP?

What is SIP Calculator, And How Does it Work?

ULIP Benefits You Can Avail from Early Investing

ULIPs: Suitable for all

Planning Financial Goals and Objectives of Financial Planning

What Is Financial Planning?

Long Term Savings Plan - Best Savings Investment Plans in India

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

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

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

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

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

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

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

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

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

ULIP as an Investment for Your Child

Difference Between ULIP and Endowment Plan?

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Investment Options for NRIs in India

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

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

How Do One-Time Investment Plans Work?

What are the Advantages and Disadvantages of ULIP?

Successful Financial Planning for Urban Women

6 Important Tips to Maximize Your Gains with ULIP Investments

Top 10 Investment Strategies to Create Wealth

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

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

ULIPs Investment – A Boon or Bane?

How to Manage Your Portfolio Like a Professional?

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

What is the Time Value of Money (TVM)?

What are the Best Investment Options for Students in India?

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

Best One-Time Investment Plans in India

Why Should You Build an Emergency Fund?

Why Are ULIPs Called Flexible Investments?

यूलिप के फायदे और नुकसान क्या हैं?

What is Equity Mutual Funds: Meaning, Types & Benefits

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

Why Should You Invest in Term Insurance And ULIP?

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

Top 10 Investment Plans Available in India

Early Investing and the Power of Compounding

What are the Best Investment Options For Females?