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.

What are the Minimum and Maximum Investments in ULIP?

ULIPs allow policyholders to allocate their premiums into different investment funds, such as equity, debt, or balanced funds, based on their risk appetite and financial goals. Want to know more? Read ahead.

  • Dec 01, 2022

Updated on: 23 June 2023

Investing in ULIPs, is certainly a wise investment decision to make, but, things can be tricky if you are unaware of all the details related to a ULIP policy. One of the most common and equally important queries related to ULIP investment is the lower and upper limits of the ULIP plans.

    Key takeaways

  • ULIP investment can be as low as a minimum sum of ₹1500 per month or ₹1,50,000 per year.
  • Other than the upper and lower limits, while planning a ULIP investment strategy, you must note that most ULIP plans have a lock-in period of 5 years.
  • A portion of the premium is utilized to provide life insurance coverage. This covers the risk of the policyholder’s life, and the charges for the same are deducted from the premium amount.
  • The performance of ULIPs is measured by the Net Asset Value (NAV) of the chosen funds.

Unit Linked Insurance Plans (ULIPs) are a popular investment-cum-insurance product offered by insurance companies. They provide the dual benefit of life insurance coverage and the opportunity to invest in various market-linked instruments. ULIPs offer flexibility in terms of investment, allowing individuals to decide the amount they want to invest based on their financial goals and risk appetite. However, there are certain limits to the minimum and maximum investments in ULIPs that individuals need to be aware of.

What are the Minimum and Maximum Investments in ULIP?

There is no specific answer to this question. The minimum and maximum amount that one can invest in ULIP policies varies from company to company. However, in general, the lower limit of premium for ULIP investment can be as low as a minimum sum of ₹1500 per month or ₹1,50,000 per year.

Lower Cap = ₹1500/month or ₹1,50,000/year

Also, generally, there is no cap on the premium amount for maximum investment, and the upper cap can be any amount that an individual is capable of paying as per their investment goals and plans.

Upper Cap = No Limit

Other than the upper and lower limits, while planning a ULIP investment strategy, you must note that most ULIP plans have a lock-in period of 5 years, and it is advised that the investors should pay the premiums for the complete term to make the maximum out of ULIP benefits. However, if you break out from the ULIP policy before the lock-in period, you will receive the fund value after certain deductions or surrender charges.

How Does ULIP Work?

When you invest in a ULIP, you have a wide range of investment options provided by the insurance company. These options span from conservative choices like debt funds to higher-risk equity funds.

Once you’ve selected your preferred investment option, the insurance company invests the premium you paid into the chosen fund. The allocation of units to you depends on the net asset value (NAV) of the fund on the day of allocation. The NAV represents the total value of the fund’s assets divided by the number of units issued.

Based on your investment goals and risk tolerance, you can also allow switch between investment options. You can switch within the same fund or transfer your investment to a different fund altogether. The lock-in period for ULIPs is five years, and once this period is over, you can withdraw a certain percentage of your investment.


ULIPs offer several benefits to investors.

  • Firstly, they provide life insurance coverage, ensuring financial security for the policyholder’s family in case of an unfortunate event.
  • Secondly, ULIPs offer the potential for wealth creation by investing in various market-linked funds. Investors have the opportunity to participate in the potential growth of the capital market and generate higher returns over the long term.
  • Additionally, ULIPs provide flexibility in terms of switching between funds, premium amounts, and policy duration, allowing investors to align their investments with changing financial goals.


It is important to note that ULIPs come with certain charges. These charges may include premium allocation charges, policy administration charges, fund management charges, mortality charges, and surrender charges. The charges vary across different ULIPs and are deducted from the premium or the fund value. It is essential for investors to carefully understand the charges associated with a ULIP before making an investment decision.

Why Invest in ULIP?

Explore the reasons why investing in ULIPs can be a smart decision for individuals seeking long-term financial security and growth.

Insurance and Investment Combo

ULIPs offer a unique blend of insurance coverage and investment growth under a single plan. A portion of the premium paid towards a ULIP goes towards providing life insurance coverage, ensuring financial protection for your loved ones in the event of an unfortunate incident. Simultaneously, the remaining portion is invested in a variety of funds, such as equity, debt, or balanced funds, based on your risk appetite and financial goals. This dual advantage of insurance and investment makes ULIPs an attractive option for investors.

Flexibility and Customization

ULIPs provide investors with a high degree of flexibility and customization. Depending on your risk appetite, financial goals, and investment horizon, you can choose between different types of funds offered by the ULIP provider. Whether you prefer a conservative approach with debt funds or seek higher growth potential through equity funds, ULIPs allow you to tailor your investments accordingly. Additionally, ULIPs offer the flexibility to switch between funds based on market conditions or changing financial objectives, ensuring that your investments remain aligned with your evolving needs.

Tax Benefits

Investing in ULIPs can offer tax benefits to investors. Under Section 80C of the Income Tax Act, the premium paid towards a ULIP is eligible for a tax deduction of up to ₹1.5 lakh in a financial year. Furthermore, the proceeds received from a ULIP policy, including maturity amount or death benefit, are tax-free under Section 10(10D) of the Income Tax Act, subject to certain conditions. These tax advantages make ULIPs an attractive investment option for individuals looking to optimize their tax liability while building wealth.

Long-Term Wealth Creation

ULIPs are designed to facilitate long-term wealth creation and help individuals meet their financial goals. By investing in ULIPs, you have the opportunity to participate in the growth potential of equity markets, which have historically provided higher returns over the long run compared to traditional investment avenues. As ULIPs have a lock-in period of five years, they encourage disciplined investing, which is crucial for wealth accumulation over time. Additionally, the power of compounding can work in your favor when investing in ULIPs for the long haul.

Professional Fund Management

One of the significant advantages of ULIPs is access to professional fund management. ULIP providers employ experienced fund managers who are responsible for investing and managing the funds on behalf of policyholders. These professionals utilize their expertise and market knowledge to make informed investment decisions and optimize the performance of the funds. This relieves investors of the burden of actively managing their investments and allows them to benefit from the expertise of investment professionals.


Before investing in a ULIP, it’s crucial to thoroughly research and understand the terms and conditions, including the ULIP investment limits, associated with the specific plan and the insurance provider. Consulting with a financial advisor can also help individuals make informed decisions based on their financial goals, risk appetite, and investment 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

यूलिप के फायदे (Benefits of ULIP in Hindi)

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

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

Factors Affecting Share Prices In The Stock Market

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

ULIP As An Investment Option For Senior Citizens

Why Should You Build an Emergency Fund?

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

All you need to know about claiming maturity proceeds from Ulip

Long Term Savings Plan - Best Savings Investment Plans in India

ULIP NAV - Everything You Need to Know

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

Receiving regular payouts at various stages of life

Learn About Safe Investments with High Returns in India

Best One-Time Investment Plans in India

What are the Best Investment Options For Females?

Planning For Children's Future

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

Why Are ULIPs Called Flexible Investments?

Is the surrender value of ULIP taxable?

How to Use Recurring Investment Strategies to Build Wealth?

Successful Financial Planning for Urban Women

Best Investment Options in India in 2022

Difference Between Linked and Non-Linked Insurance Plans

What are ULIPs and their Types?

What is ULIP and Its Benefits?

ULIP Frequently Asked Questions (FAQ) - Kotak Life

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

Is ULIP a Complex Financial Product?

Are Money Back Policies Helpful? A Complete Guide

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

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

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

Best Investment Options to Cover Your Child's Education

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

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

Can ULIP Help in Achieving Short-Term Financial Goals?

How to Manage Inheritance Money?

What is ULIP Renewal?

Top 11 Investment Plans Available in India

How To Track ULIP Performance?

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

ULIP Investment Benefits You Must Know

5 Reasons to Buy ULIPS for a Financially Secured Future

Top 10 Investment Strategies to Create Wealth

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

What is Partial Withdrawal in ULIPs?

How has ULIP Grown Over the Last 3 years?

Importance of Portfolio Management

Know Why You Should Stay Invested in Your ULIP Plan

Develop an investing plan

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

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

How to Set Financial Goals for Your Future

What is Equity Mutual Funds: Meaning, Types & Benefits

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

Customising investments to manage your wealth

यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

यूलिप के फायदे और नुकसान क्या हैं?

Top 5 Principles That Need to be Followed for Wealth Creation

ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

What is SIP Calculator, and How it Works?

Are Investment Returns Guaranteed in a ULIP?

Which are the Best ULIP Plans in India for Children?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

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

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

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

What are Financial Assets & their types?

How to Plan your Investment to Achieve Periodic Financial Goals?

उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

Asset Allocations in ULIP - Know the Top Benefits

What is Lock-In Period in ULIPs?

How to Make Your Financial Portfolio?

Safe Investment Options with High Returns for FY 2018-19

Can You Have ULIP Plan and Health Insurance Plan Both?

How ULIPs can help you achieve your financial goals

Savings Plan for Grandchildren

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

Corporate Bonds: Meaning, Types & Benefits

ULIP Vs Life Insurance Plan Know the Difference

Here's Myths on Investments in ULIP Plans

यूलिप और उनके प्रकार क्या हैं?

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

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

Best Investment Plans For You To Invest In 2023

What are Index Funds, and How Do They Work?

What is Savings and the Importance of Saving Money

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

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

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

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

वित्तीय संपत्तियां और उनके प्रकार

Why are ULIPs One of the Best Tax Saving Instruments?

How Can ULIP Plan be as an Investment for Your Child

How Do One-Time Investment Plans Work?

ULIP Benefits You Can Avail from Early Investing

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

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

How to Start Saving Money in 10 Simple Ways?

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

Creating a second source of income with life insurance

What is Direct Investment and its Types?

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

ULIPs: Suitable for all

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

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

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

Different Types of ULIP Investments in India

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

Investments Options to Buy a house in India

How To Invest Money In ULIP?

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

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

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

What are the Best Investment Options for Students in India?

How to Cancel ULIP Policy?

Balancing Investment Between Risk and Return on Investments

FAQs on Taxation of ULIPs

Know How to Invest at Every Age for Larger Returns

Difference Between ULIP and Endowment Plan?

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

ULIP Plan as a Gift

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

Investment Options for NRIs in India

How to Save Money from Salary?

Do ULIPs Give Good Returns On Investments?

What is the Time Value of Money (TVM)?

All you need to know about Fund Switching in ULIPs

Can ULIP Policy be Transferred?

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

Do You Know the Difference Between Savings and Investment?

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

What are Some of the Safest Investment Options in India?

Tax-Deferred Savings Plan: Overview, Benefits, Works

How to Increase Net Worth Along with Family Protection

8 Charges in ULIP That You Must Know

Top ULIP Myths That You Must Stop Believing In

How Safe is it to Invest in ULIP plans?

Can You Invest in Both Term Insurance and ULIP?

Learn About Safe Investments with High Returns in India

5 Reasons to Have a Child Education Plan

ULIPs Investment – A Boon or Bane?

Is Life Insurance Investment Worthy Enough

Difference Between Passive and Active Investing

How to Calculate Your ULIP Returns?

ULIP vs FD - Which is Better and Why?

What is a Bond Fund and How It Works?

How to Manage Your Portfolio Like a Professional?

Is ULIP A Good Investment Option?

Which is a Better Investment - Mutual Funds Or ULIP?

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

ULIP Withdrawal Conditions - Before and After 5 years

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

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

Are Gains from ULIP Sale Taxable?

What is ULIP Plan, and How Does it Work?

What is a Savings Plan and What are is Benefits?

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

Can I Surrender My ULIP Policy after 2 Years?

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

Early Investing and the Power of Compounding

How to Build a Strong Financial Foundation For the Future?

What are the Best Investment Options for Young Adults?

What is Fund Value in ULIP?

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

What Is Financial Planning?

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

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

Difference Between Guaranteed Savings Plan and ULIP

ULIP Plan or Traditional Insurance Plans - Which is better?

यूनिट लिंक्ड इंश्योरेंस प्लान में लॉयल्टी एडिशन कैसे काम करते हैं

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

ULIP Plans Riders You Should Know About

What are the Advantages and Disadvantages of ULIP?

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

Why Should You Invest in NPS?

Planning Financial Goals and Objectives of Financial Planning

Will You Need to Withdraw or Surrender Money From ULIP

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

Why ULIP Should Be a Part of Your Investment Portfolio?

What is Money Management? Definition & Example

Building wealth through regular investing

8 Important Tips to Maximize Gains with ULIP Investments

Top 5 Investment Options in 2022 for Healthy Returns

Endowment Plan vs Fixed Deposit?

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

Why Should I Invest in ULIP?

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

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

Benefits of ULIP as a Child Insurance Plan

What are the things to consider before buying ULIPs?

Can NRIs Invest in ULIP Plans Offered in India?

Rate of Interest on Different Investment Plans in India

6 Important Tips to Maximize Your Gains with ULIP Investments

Planning For Son or Daughter's Wedding

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