Close
Close

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

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.

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

Premium Redirection in ULIPs Plan- Premium redirection means allocating the funds from one unit to another either partially or fully. Read more on this article

  • Mar 14, 2021
  • 2,209 Views

Flexibility is one of the hallmark features of ULIPs. These plans let you tweak your investment strategy with changes in market conditions and financial goals. Based on your needs, you can alter your premium allocation from aggressive equities to more stable and conservative debt funds. The feature of premium redirection in ULIPs facilitates such modifications.

What does premium redirection mean?

Your insurer invests a part of your ULIP premiums into different asset types as per your tolerance for market volatilities. You can select from equity, balanced, and debt funds. The returns at the end of the ULIP tenure depend on how the funds perform during this period.

When you buy the ULIP, you have to decide the percentage of your premium you want to direct into the different fund types. However, with changing economic scenarios or financial needs, you can choose to change how you want to divide your premiums across various asset classes.

Premium redirection in ULIPs lets you alter the funds where you want to invest your future premiums. It also allows you to modify your future premium allotment percentages over the various fund types. With premium redirection, your insurer distributes your incoming investments to the different fund units in the new ratio you choose. Your earlier investments will remain in the same funds you currently hold.

When should you redirect your premiums?

  • To change from equity to debt funds. You can start with a growth-based investment approach. But as you reach retirement age or the time to fulfil your financial targets approaches, you may prefer to preserve your wealth. At this point, you might want to shift to low-risk debt funds.

  • Otherwise, the market might pass through a short-term volatile phase. Security prices might start to decrease. Under such conditions, you might want to prevent erosions to your fund value. Then you can focus your investments towards fixed-income options for better returns.

  • To explore better-performing funds.
    You may want to start investing in new funds. But you may also want to keep your existing fund composition intact. You can then allot your upcoming premiums into new funds with premium redirection. Your current shareholdings will not change.

  • To exit from debt funds.
    When you first venture into the capital market, you may favour a cautious approach with the security of debt funds. Otherwise, the markets might have been slow, and debt markets offered better prospects. Later, when the market bounces back, you may wish to tap into the profit-potential of equities.

  • utm_source=NPSORGANIC&utm_medium=Website&utm_campaign=Contextual_CTA&utm_content=Retirement” class=“redBtn” onclick=“dataLayer.push({'event': 'event retirement', 'category': 'new customers', 'action': 'retirement', 'label': 'retirement'});”>View Plans

    Terms and conditions for premium redirections

    • You can redirect your premiums after one year from the purchase date of the ULIP.
    • Your insurer decides the number of times you can redirect your premiums in a policy year.
    • The charges levied on premium redirections are typically nominal.

    Conclusion

    Fluctuations in the capital market are usual. But premium redirection in ULIP helps you adjust your investments as per market outlooks. Thus, ULIPs provide opportunities to fine-tune investment strategies, survive slowdowns, and maximize your gains through varying market cycles.

    If you want to create wealth utilizing ULIPs flexibility, you can consider the policies offered by Kotak Life Insurance. Some of the lucrative options include:

    You can study the brochures detailing each policy’s advantages online and select a plan to match your investment objectives.

    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

    All you need to know about claiming maturity proceeds from Ulip

    How to Manage Inheritance Money?

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

    How has ULIP Grown Over the Last 3 years?

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

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

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

    Top 5 Investment Options in 2022 for Healthy Returns

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

    Difference Between Guaranteed Savings Plan and ULIP

    What is Money Management? Definition & Example

    Why Are ULIPs Called Flexible Investments?

    वित्तीय संपत्तियां और उनके प्रकार

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

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

    Know Why You Should Stay Invested in Your ULIP Plan

    यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

    Can I Surrender My ULIP Policy after 2 Years?

    उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

    Learn About Safe Investments with High Returns in India

    Can ULIP Help in Achieving Short-Term Financial Goals?

    Is the surrender value of ULIP taxable?

    What is a Bond Fund and How It Works?

    Top 11 Investment Plans Available in India

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

    Can You Have ULIP Plan and Health Insurance Plan Both?

    ULIP vs FD - Which is Better and Why?

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

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

    FAQs on Taxation of ULIPs

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

    What is Direct Investment and its Types?

    यूलिप के फायदे (Benefits of ULIP in Hindi)

    Factors Affecting Share Prices In The Stock Market

    Long Term Savings Plan - Best Savings Investment Plans in India

    Is Life Insurance Investment Worthy Enough

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

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

    Difference Between Linked and Non-Linked Insurance Plans

    ULIPs: Suitable for all

    What are Some of the Safest Investment Options in India?

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

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

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

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

    What is Lock-In Period in ULIPs?

    How ULIPs can help you achieve your financial goals

    5 Reasons to Have a Child Education Plan

    What are the Advantages and Disadvantages of ULIP?

    How to Plan your Investment to Achieve Periodic Financial Goals?

    Investments Options to Buy a house in India

    What are the Best Investment Options For Females?

    Why Should I Invest in ULIP?

    Investment Options for NRIs in India

    Benefits of ULIP as a Child Insurance Plan

    How to Start Saving Money in 10 Simple Ways?

    Know How to Invest at Every Age for Larger Returns

    How to Use Recurring Investment Strategies to Build Wealth?

    What is ULIP Plan, and How Does it Work?

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

    What is Partial Withdrawal in ULIPs?

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

    Best One-Time Investment Plans in India

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

    Will You Need to Withdraw or Surrender Money From ULIP

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

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

    Can You Invest in Both Term Insurance and ULIP?

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

    Develop an investing plan

    What Is Financial Planning?

    Top ULIP Myths That You Must Stop Believing In

    Rate of Interest on Different Investment Plans in India

    Which is a Better Investment - Mutual Funds Or ULIP?

    How to Set Financial Goals for Your Future

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

    Can ULIP Policy be Transferred?

    What is ULIP Renewal?

    5 Reasons to Buy ULIPS for a Financially Secured Future

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

    How to Calculate Your ULIP Returns?

    How to Increase Net Worth Along with Family Protection

    Why ULIP Should Be a Part of Your Investment Portfolio?

    ULIP Investment Strategy: Top Tips to Improve Your ULIP Gains

    Planning For Children's Future

    Difference Between Passive and Active Investing

    ULIP Frequently Asked Questions (FAQ) - Kotak Life

    All you need to know about Fund Switching in ULIPs

    How to Manage Your Portfolio Like a Professional?

    Is ULIP a Complex Financial Product?

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

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

    Top 10 Investment Strategies to Create Wealth

    How Can ULIP Plan be as an Investment for Your Child

    Why are ULIPs One of the Best Tax Saving Instruments?

    How to Build a Strong Financial Foundation For the Future?

    Customising investments to manage your wealth

    Why Should You Invest in NPS?

    Here's Myths on Investments in ULIP Plans

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

    What are ULIPs and their Types?

    Best Investment Plans For You To Invest In 2023

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

    What are the things to consider before buying ULIPs?

    Early Investing and the Power of Compounding

    How Safe is it to Invest in ULIP plans?

    ULIP Withdrawal Conditions - Before and After 5 years

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

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

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

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

    Do ULIPs Give Good Returns On Investments?

    Best Investment Options in India in 2022

    8 Charges in ULIP That You Must Know

    Which are the Best ULIP Plans in India for Children?

    यूलिप के फायदे और नुकसान क्या हैं?

    Why Should You Build an Emergency Fund?

    Tax-Deferred Savings Plan: Overview, Benefits, Works

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

    What is a Savings Plan and What are is Benefits?

    ULIP As An Investment Option For Senior Citizens

    Savings Plan for Grandchildren

    ULIP Investment Benefits You Must Know

    Balancing Investment Between Risk and Return on Investments

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

    Corporate Bonds: Meaning, Types & Benefits

    What is Fund Value in ULIP?

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

    ULIP NAV - Everything You Need to Know

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

    Are Money Back Policies Helpful? A Complete Guide

    How to Cancel ULIP Policy?

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

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

    How To Invest Money In ULIP?

    Difference Between ULIP and Endowment Plan?

    Building wealth through regular investing

    What is the Time Value of Money (TVM)?

    6 Important Tips to Maximize Your Gains with ULIP Investments

    यूनिट लिंक्ड इंश्योरेंस प्लान में लॉयल्टी एडिशन कैसे काम करते हैं

    यूलिप और उनके प्रकार क्या हैं?

    What is Savings and the Importance of Saving Money

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

    What is ULIP and Its Benefits?

    What are the Best Investment Options for Young Adults?

    Is ULIP A Good Investment Option?

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

    Do You Know the Difference Between Savings and Investment?

    ULIP Plan or Traditional Insurance Plans - Which is better?

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

    What is Equity Mutual Funds: Meaning, Types & Benefits

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

    What are Index Funds, and How Do They Work?

    ULIP Benefits You Can Avail from Early Investing

    Are Gains from ULIP Sale Taxable?

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

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

    Different Types of ULIP Investments in India

    ULIP Plan as a Gift

    Can NRIs Invest in ULIP Plans Offered in India?

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

    ULIP Plans Riders You Should Know About

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

    Asset Allocations in ULIP - Know the Top Benefits

    Are Investment Returns Guaranteed in a ULIP?

    How to Make Your Financial Portfolio?

    Endowment Plan vs Fixed Deposit?

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

    8 Important Tips to Maximize Gains with ULIP Investments

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

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

    What are the Best Investment Options for Students in India?

    Best Investment Options to Cover Your Child's Education

    ULIP Vs Life Insurance Plan Know the Difference

    Planning For Son or Daughter's Wedding

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

    Creating a second source of income with life insurance

    How Do One-Time Investment Plans Work?

    Planning Financial Goals and Objectives of Financial Planning

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

    Successful Financial Planning for Urban Women

    Receiving regular payouts at various stages of life

    उच्च रिटर्न प्राप्त करने के लिए सर्वश्रेष्ठ इन्वेस्टमेंट विकल्प

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

    What are the Minimum and Maximum Investments in ULIP?

    Importance of Portfolio Management

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

    Safe Investment Options with High Returns for FY 2018-19

    What are Financial Assets & their types?

    ULIPs Investment – A Boon or Bane?

    Top 5 Principles That Need to be Followed for Wealth Creation

    How To Track ULIP Performance?

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

    How to Save Money from Salary?

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

    What is SIP Calculator, and How it Works?

    Learn About Safe Investments with High Returns in India