ULIP Benefits You Can Avail from Early Investing

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

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

ULIP Benefits You Can Avail from Early Investing

 ULIP Benefits You Can Avail from Early Investing
  • 22nd Jul 2022 |
  • 272

If you were to believe expert’s advice, then any investment is most fruitful when you start early. So, you will find most experts advising you to start investing as soon as you start working in your 20s. It is suggested to start your investment journey early in life for two reasons. You start early, you start low. It helps in accumulating funds over time. Another reason is that it helps in building a discipline of saving regularly.

When you talk about investment in your young years, Unit Linked Insurance Plans (ULIPs) are among the most loved plans among the youths of India. It offers them the dual benefit of insurance and investment and helps them save tax. Plus, they can also manipulate the investment strategy as per market trends, allowing them to make the most out of their investment.

Moreover, ULIPs offer various benefits and options for the policyholder to invest in multiple market-linked funds as per their risk appetite. In this article, we will discuss how ULIP is an excellent tool for early investing, the ULIP benefits for early investment, and how the benefits of early investment in ULIP can help you in long-term goals.

How ULIP is a Great Tool for Early Investing?

ULIPs are a great investment option for youngsters. It gives them time to build a corpus, save taxes, and help them get disciplined with the art of saving. Moreover, as the interest compounds, the sooner an investment is started, the higher the chances of yielding more interest is. In case of ULIP, the fund’s growth is often faster since it is a market-linked investment tool.

ULIP Benefits for Early Investment

Let’s have a look at the top benefits of early investment in ULIP:

1. Accumulation of a bigger corpus at your disposal

As you start investing early in life, you ensure that you are adding more years to your investment journey. These early years that you have added to your investment journey might not look fruitful at the beginning, but in a later stage of life, this will help you build a bigger corpus. So, if a person starts investing in their 20s, he can save way more till their 60s compared to those who start saving in their 40s.

You can use ULIP calculator to check the difference in the funds accumulated when you start investing in your 20s versus in your 40s. It is apparent that even when you invest a sum of ₹5000 per month in a ULIP policy offering a return of 8% when you start investing late and invest only for 15 years, you only accumulate around ₹17 lacs.

Whereas a youngster who started investing in their mid-20s (say since they were 25 years old) and kept investing regularly for 30 years accumulated a sum of ₹75 lacs at an interest rate of 8%. Thus, by the time he is 55 years old, he will have a massive corpus at his disposal compared to the person who started investing late.

2.Security of life insurance since the beginning

We all know that life is unpredictable, and you cannot control it. But planning and being prepared for any unfortunate incident is a great way to ensure your family’s safety and financial stability. When you opt for ULIP at an early age, you confirm that your life is insured and that your family will remain financially stable even if something unfortunate happens to you. Also, when you take a life insurance at an early age, the premium amount is less, and you will get to avail more significant benefits.

3.Tax saving

ULIPs are a great tax savings tool. They offer an E-E-E model of tax savings where a policyholder is exempted from tax on premiums paid, proceeds, and maturity subject to Section 80C and Section 10 (10D) of the Income Tax Act.

4.Fulfilment of life goals

Most ULIP policies allow partial withdrawal. This helps the policyholder financially in fulfilling any need or requirement as they grow. We all know that as we grow older, many needs arise, and having a fund at your disposal can be of great help.

5.Development of disciplined savings habit

ULIPs are a great way to learn to invest in a disciplined manner. ULIP policies have a minimum lock-in period of 5 years. When you start investing money as a youngster, you may feel like withdrawing the money time and again to fulfil even your slightest needs. When you opt for ULIP, you develop a habit over time of investing without withdrawing money and develop a sense to control your urge and focus on investment to fulfil your financial goals. Moreover, the 5-year lock-in period gives you a taste of accumulating funds which motivates you to save more.

So, there are many benefits of early investment in ULIP. Also, when you have a large retirement corpus at your disposal and other bonuses, you can quickly fulfil your wishes. Moreover, staying invested for a longer tenure can help you leverage the power of compounding. So, by starting to invest in early life, you are giving yourself a chance to stay invested for an extended period. However, before opting for any policy, you must carefully read its policy documents and guidelines.

Kotak e-Invest

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

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


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

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

Important Questions You Must Ask Yourself When Buying a ULIP Plan

Learn About Safe Investments with High Returns in India

Endowment Plan vs Fixed Deposit?

What are Some of the Safest Investment Options in India?

What is a Savings Plan and What are is Benefits?

Short Term and Long Term ULIP Plans for Wealth Creation

What is the Importance of Saving Money?

ULIP vs FD - Which is Better and Why?

Difference Between Guaranteed Savings Plan and ULIP

What are the Best Investment Options For Females?

Investment Options for NRIs in India

How to Start Saving Money in 10 Simple Ways?

Top 5 Principles That Need to be Followed for Wealth Creation

What are Deferred Savings Plans?

Early Investing and the Power of Compounding

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

Top 6 Investment Plans Available in India

Successful Financial Planning for Urban Women

Savings Plan for Grandchildren

Things to Know Before Buying an Endowment Plan

Basics of Guaranteed Savings Plan

4 Benefits of ULIP Fund-Switching Feature

Top 5 Investment Options in 2022 for Healthy Returns

Different Types of Endowment Plans

Are Gains from ULIP Sale Taxable?

Factors Affecting Stock Markets

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

How to Make Your Financial Portfolio?

4 Important Tips to Maximize Gains with ULIP Investments

How Do One-Time Investment Plans Work?

Which is a Better Investment - Mutual Funds Or ULIP?

What is ULIP Renewal?

Planning Financial Goals and Objectives of Financial Planning

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

How to Cancel ULIP Policy?

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

Why Should You Invest in Term Insurance And ULIP?

How Does an Endowment Plan Work?

Complete Savings Plan for Low Income Earners

Best Investment Options to Cover Your Child's Education

Asset Allocations in ULIP - Know the Top Benefits

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

Creating a second source of income with life insurance

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

Difference Between Guaranteed Savings Plan and Guaranteed Income Plan

How To Invest Money In ULIP?

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

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

Why Should Parents Invest in Endowment Plan?

Importance of Portfolio Management

Best One-Time Investment Plans in India

Savings vs Investment: Know the Difference

Are Money Back Policies Helpful? A Complete Guide

What are Tax-Deferred Savings Plans?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

What are the Best Investment Options for Students in India?

Long Term Savings Plan - Best Savings Investment Plans in India

How to Manage Your Portfolio Like a Professional?

How to Plan Savings from Salary?

Best Investment Options in India in 2022

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

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

What are the Best Investment Options for Young Adults?

Can ULIP Help in Achieving Short-Term Financial Goals?

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

Investments Options to Buy a house in India

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

Difference Between Passive and Active Investing

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

What are Mutual Funds?

Building wealth through regular investing

3 Tips to Buy Guaranteed Savings Plan

Top 10 Investment Strategies to Create Wealth

ULIP Plan as a Gift

Customising investments to manage your wealth

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

What is better - Guaranteed Savings Plan or Fixed Deposit?

ULIP as an Investment for Your Child

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

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

How to Plan your Investment to Achieve Periodic Financial Goals?

How to Increase Net Worth Along with Family Protection

How To Diversify Portfolio In 2022?

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

Learn About Safe Investments with High Returns in India

Safe Investment Options with High Returns for FY 2018-19

How To Track ULIP Performance?

Receiving regular payouts at various stages of life

Benefits of ULIP as a Child Insurance Plan

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

How to Manage Inheritance Money?

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