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In ULIP, the investment risk in the investment portfolio is borne by the policyholder
Unit-Linked Insurance Plan (ULIPs) is a type of life insurance plan that offers you the chance to grow your money. Unit Linked Insurance... Plan provide long-term financial protection to your family with the coverage of life. As a matter of fact, these plans are extremely popular among individuals because they help in securing your financial future as well as long-term capital growth. ULIPs provide a medium for the creation of funds and a tax benefit to the owner of the policy. They also create a wide, yet customizing road to financial planning and protection. Read more
In Built Life Cover
Free Fund Switches
Partial Withdrawal
In Built Life Cover
Free Fund Switches
Partial Withdrawal
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ULIP is the short form for Unit Linked Insurance Plan. It is a kind of insurance product providing a cover for one's life along with offering an investment opportunity under one single plan. Unlike traditional insurance plans based upon providing a cover for life, ULIP plans pool some amount of the premium towards insurance and invest the rest in market-linked funds.
Do note, that ULIP returns are subject to market risks and invest in them only if they fit your requirement is advised.
Let us now see the power of compounding in different case scenarios:
Kotak Life offers several ULIP plans that best meet your requirements. You can understand the benefits, features, and investment strategies associated with these ULIP plans. The following are our top recommendations.
If you're looking for a product that combines insurance with market-linked returns, ULIP plans are a great choice. Selecting the best ULIP plan for investment can help you achieve your long-term financial goals. These plans invest a percentage of your premium in wealth-generating market-linked tools and the remaining premium amount is used to cover your family. Let's take a glance at other benefits of these plans.
With ULIP, you get the benefits of insurance protection & wealth-growth in one single plan. As mentioned above a part of the premium paid on unit-linked insurance plans is used to provide life cover, thus ensuring that the family members are taken care of in case of some unfortunate incident. Apart from this, the rest of the amount is put into equity, debt, or a mix of both, through which money will grow over a period of time.
The flexibility that unit-linked insurance plans offer lies in their investment strategies. You can choose from various fund options where you select the magnitude of risk with potential returns based on your risk tolerance level. Whether you like the stability of debt funds or equity funds for growth, ULIPs allow you to change your investment strategy according to your choice of investment..
Unlike traditional plans, where there is no investment component explicitly explained, unit-linked insurance plans are transparent about where your money gets invested. You can keep an eye on how investments have been performing and can alter your composition of funds to your requirements. This allows you to control your returns to your best advantage and to manage risks effectively.
There are several tax benefits that ULIP plans provide and are thereby tax-efficient investment instruments. The premium paid to this investment is allowed tax deduction under Section 80C of the Income Tax Act up to certain limits. In addition, the maturity proceeds and death benefits received from ULIP plans are considered non-taxable under Section 10(10D) of the Income Tax Act subject to conditions specified under the Income Tax Act.
For example, an annual premium of ₹1.2 lakh in ULIPs can provide you with a tax deduction of up to ₹1.2 lakh under Section 80C of the Income Tax Act.
Consider your taxable income to be ₹10 lakhs. ULIP can bring the taxable income down to ₹8.8 lakh. In addition, if the ULIP returns in 10 yearsafter maturing with a sum assured of ₹15 lakhs, and your annual premium is lesser than 10% of the sum assured and annual aggregate premium is upto Rs.2.50 Lakhs, then the maturity proceeds are absolutely tax-exempt under Section 10(10D). This means both your investment and the returns are shielded from taxes, providing dual benefits.
Unit-linked Insurance Plan is the best financial instrument for long-term wealth creation. In fact, these plans encourage disciplined investment for long-term returns time. In case you invest here for a long-term, you can find how amazing the power of compounding is. It can be so applied to yield high ULIP returns in 15 years.Be it saving for a child's education, your retirement, or any other financial goal, ULIPs represent a systematic way towards wealth accumulation.
As digitization and online platforms have increased, the cost of ULIP schemes has reduced. As an investment, they can be called a cost-effective alternative to traditional insurance plans. Administrative and distribution charges are much higher in traditional insurance plans, but in case of unit-linked insurance plans, competitive charges are offered, and returns on your investment get maximized. They also allow switching between funds without extra charges as well as flexibility at minimal costs.
Unit Linked Insurance Plans are an alternative to traditional insurance policies, wherein premiums of a policyholder are invested in a fund of the investor's choice, that could be equity, debt, or a mix of both.
ULIP plans enables you to choose investment channels according to your risk capacity. You may go aggressive with equities, careful with the debt funds, or balanced funds for getting the best of both worlds. Your premiums can also be allocated towards funds of your preference, depending on your risk appetite.
If your ULIP fund isn’t performing as expected due to market volatility, you have the flexibility to switch between funds. For example, if you initially invested ₹5 lakhs in an equity-focused ULIP for higher returns but the market turns volatile, you can shift your investment to a debt fund to minimize losses and safeguard your capital. Once the market stabilizes, you can switch back to equity to stay aligned with your long-term goals and optimize returns. This flexibility helps balance risks while ensuring steady growth over time.
You are eligible to withdraw a part of the amount from your policy after the five years lock-in period, as required. The insurance company decides how much amount you can withdraw and also the number of withdrawals you can make.
You should, ideally, not make partial withdrawals as it may impact your returns in the long-term and the purpose of investment might get lost. You should only do this when you are in a dire financial crisis and there is no other option.
You have the option to enhance your existing coverage by opting for Top-Up Premiums. This means that you can access an additional Top-Up Sum Assured by paying a bit extra over and above your regular premium. Essentially, a top-up premium allows you to increase the coverage amount on your health insurance policy without having to buy a new policy. This can be particularly useful if you want higher coverage for specific treatments or medical emergencies without a large increase in your annual premium.
ULIP differs from all otherlife insuranceinstruments since it enables you to invest and also protect the financial future of your loved ones all with one single plan. As being a product of life insurance, you get the benefit of tax as well. The plan’s ability to support wealth creation, offer financial protection, and provide tax relief under Sections 80C and 10(10D) make it an all-in-one package that caters to both security and growth.
ULIP is a versatile tool to secure your financial future that has the benefits of both insurance and investment. Let's understand the importance of ULIP Plans in personal finance.
One of the mainadvantages of ULIPschemes is that they add insurance coverage to an investment in a very different way compared to all traditional insurance products. They not only provide protection and life cover but also grow your investments simultaneously.
The best ULIP plans give you an extremely high degree of flexibility and control in your investments. ULIP plans are ideal when you have financial goals and risk appetite determined. It allows you to switch between various investments in case of market fluctuations or if your preferences change.
ULIP plans are the best products suited for long-term investment horizons. As much as they allow you to stay invested for a long period of time, you can take advantage of compound interest to grow your wealth at a considerable rate. They can be very helpful in meeting long-term life goals such as buying a house, funding education, or ULIP retirement plans.
Premiums paid for ULIP plans are tax deductible, as under Section 80C of the Income Tax Act, 1961, up to certain limits. Further, the maturity proceeds and the death benefit received from ULIP plans fall in the category of income that is generally exempt under Section 10(10D),subject to conditions specified under the Income Tax Act.
A ULIP calculator is an online tool provided by insurance companies. Through these calculators, one can get an idea of the returns and premiums these ULIP plans offer for various investment scenarios. The best ULIP plans give an array of options with various features and benefits attached to each. It can become very tough to pick just one. A ULIP calculator really helps in such scenarios by giving clarity on how is . CAGR calculated in ULIP
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Enhance Your Personal FinanceA ULIP calculator is an online tool provided by insurance companies. Through these calculators, one can get an idea of the returns and premiums these ULIP plans offer for various investment scenarios. The best ULIP plans give an array of options with various features and benefits attached to each. It can become very tough to pick just one. A ULIP calculator really helps in such scenarios by giving clarity on how is CAGR calculated in ULIP.
Investment Amount(Monthly)
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Sensex has given 10% return from 2010 - 2020
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Periodic Investment(optional)
A Unit Linked Insurance Plan (ULIP) functions as both an insurance policy and an investment tool. Here’s a step-by-step breakdown of how it works:
Select the coverage amount, policy duration, and premium payment mode (monthly, yearly, or lump sum).
A portion of your premium goes towards life insurance coverage.
The remaining amount is invested in funds of your choice (equity, debt, or a mix).
Based on your risk appetite, you can opt for high-return equity funds, stable debt funds, or balanced funds.
Your investment value fluctuates with market performance, offering potential long-term wealth growth.
Switch between different fund options based on market conditions.
Track your investment through ULIP NAV (Net Asset Value) updates.
At maturity, you receive the fund value based on your investment returns.
In case of an unfortunate event, your nominee receives the sum assured as a life cover.
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Take the first stepBuilding a corpus to secure a safe future for you and your loved ones is crucial, and unit linked insurance plans can help you achieve that. Let's take a glance at the benefits of ulip plans.
Unit Linked Insurance Policies permit you to choose whatever amount of Life Cover you want. In most ULIP plans, a minimum life cover has to be provided equal to 7 times your yearly premium. However, depending on the plan you choose you can opt to buy a life cover to the extent of up to 25 times of your yearly premium.
For example, if you invest ₹1 lakh per year in a ULIP, you can choose a life cover ranging from ₹7 lakh (7 times your premium) to ₹25 lakh (25 times your premium), depending on the plan. Suppose you select a life cover of ₹15 lakh (15 times your premium). If an unfortunate event occurs during the policy term, your family would receive ₹15 lakh. This flexibility allows you to adjust the life cover based on your financial protection needs and future goals.
One of the most convincing features of a ULIP is that you are free to choose the type of investment you desire. This flexibility allows investors to tailor their ULIP plans according to their individual needs.
ULIP plans are specially designed to help you meet your financial objectives whether it's increasing your wealth or planning for your retirement. For instance, you can opt for ULIP for child educationto support you children’s future life goals.
When your policy matures, you receive the fund value that has accumulated, which is the result of your paid premiums and market-linked returns.
ULIP plans offer a comprehensive death benefit that guarantees your family's financial well-being in the event of your untimely demise. Your nominees will receive the proceeds basis the terms and conditions of your ULIP policy.
Loyalty additions in ULIP plans are some extra units added on towards your policy at specific intervals and rewards you for staying invested over the years. This not only enhances the growth potential of your investment but also shows how committed an insurer is toward your financial success.
As you continue along on the ULIP journey, you will then come across the wealth boosters. These are additional units allocated to your policy once you have reached some specific milestones such as completion of five years or more of the policy term.
ULIP plans have dynamic fund allocation and hence switching to any fund that is offered by the insurer, such as equity, debt, or balanced funds is quite easy. This flexibility to switch funds helps maximize returns while simultaneously managing risk with changing market dynamics.
At different stages of your life insurance policy, you may be eligible for tax benefits as per the Income Tax Act of 1961.
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Buy NowUnit Linked Insurance Plans are the most popular investment among people looking to grow their wealth and also get insurance benefits is ULIP. As people have different tolerances for the risks faced in investments, ULIP plans thus offer something for every individual. Let’s take a closer look at who can benefit the most from investing in ULIPs
The main feature of ULIP plans is that a single policy offers you the benefits of investment and insurance. It can prove to be the best solution for those who do not want to purchase separate policies but want the benefits of both.
ULIP plans have options for every individual irrespective of whatever the risk tolerance is for an individual. It offers stable returns by investing in different options. It also offers various options to adjust your investment amount if you think you're ready to invest in high-risk investments. ULIP plans have ended up becoming a favorite investment tool for many individuals due to this feature.
ULIP, being a market-oriented investment tool are subject to market risks. Such tools can give excellent returns if a person is willing to take risks.
It’s widely known that investments grow best over a long period. ULIPs are built as long-term investments, which means they can offer good returns if you stay invested for an extended time. By keeping your money in ULIPs, you can benefit from compounding, helping you increase your returns over the years.
If you are looking for tax savings and investments, ULIPs are for you. As per the Income Tax Act, the premiums paid are subject to tax deductions up to ₹1.5 lakh under Section 80C, and the maturity proceeds are tax-exempt under Section 10(10D) subject to conditions specified under the Income Tax Act.
ULIP has variations that will suit every risk-taker. While it allows you to have stable returns through a reliable stake, it also has variations in adjusting your investment if you feel ready for investing your money with plans having higher risk. This is the reason why ULIP plans are popularly chosen as an investment among people.
There is no right age to invest in ULIP plans. ULIP is appropriate for those investors who are near retirement as well as for young investors. It benefits first-time investors by offering long-term investing opportunities for wealth accumulation purposes. For people looking for retirement solutions, the lock-in period offered by ULIP helps save money for a period of five years and reaps rewarding returns after the lock-in period is over. They can even stretch the investment period if their budget and time permits.
Unit Linked Insurance Plans (ULIPs) are designed to offer a blend of insurance and investment. However, just like any financial product, ULIPs come with a variety of charges that can impact the overall returns. Understanding these charges is crucial for investors to make an informed decision.
Here’s a detailed breakdown of the key charges involved in ULIPs:
These charges are deducted by the insurance company for the administration and management of your ULIP. They cover the operational costs involved in maintaining your policy, including record keeping, customer service, and other administrative tasks.
These charges are usually deducted monthly from your fund value.
The amount can either be a fixed sum or a percentage of the fund value, depending on the insurer and the plan.
Fund Management Charges are levied by the insurer for managing and investing your money in the selected funds (such as equity, debt, or balanced funds). The insurance company charges a fee for their expertise in managing the portfolio of assets in your ULIP.
These charges are deducted daily from the fund value before calculating the Net Asset Value (NAV).
Typically, this is a small percentage of the assets under management, generally ranging from 0.5% to 1.35% per annum, depending on the type of fund you choose.
Premium allocation charges are deducted from your premium before investing it into the chosen funds. These charges cover the cost of sales, distribution, and underwriting.
This charge is typically deducted upfront at the time of premium payment.
The premium allocation charges can range from 2% to 5% of the premium amount, and may reduce as the policy term progresses. Some ULIPs offer lower charges after the first few years.
Mortality charges are charged for providing life insurance coverage under the ULIP. This fee covers the risk of the insurer paying the death benefit to the nominee in the event of the policyholder's demise during the policy term. The amount of the mortality charge is dependent on the following factors:
These charges are deducted monthly, and the amount is taken from your fund value.
The mortality charges vary significantly between insurers and are based on the policyholder's risk profile, age, and sum assured.
ULIPs allow you to switch between different funds (equity, debt, or hybrid) as market conditions change or your investment strategy evolves. Some insurers charge a fee for switching between funds once a certain number of switches (usually free) have been used.
Many insurers allow 1-4 free switches per year, after which a charge of ₹100 to ₹500 per switch may apply.
In some ULIPs, you can withdraw part of your accumulated fund value after completing the 5-year lock-in period. However, if you make partial withdrawals within the lock-in period or exceed the free limit after the lock-in, the insurer may charge a fee.
This charge is applicable when you make withdrawals exceeding the free allowance or during the lock-in period.
It may be a fixed amount or a percentage of the withdrawal, depending on the insurer's terms.
Surrender charges are applicable if you decide to cancel your ULIP before the end of the 5-year lock-in period. This is a penalty fee that reduces the amount returned to you when you exit the policy early. The idea behind the surrender charge is to discourage early exits and to recoup the insurer’s costs of underwriting and managing the policy.
The charge applies when you surrender your ULIP before the lock-in period ends.
These charges can be substantial during the initial years but reduce gradually after the lock-in period. Some insurers may waive the surrender charge after the lock-in period ends.
ULIPs are preferred because of their flexible investment option. They integrate insurance coverage with investment options, thus offering excellent long-term returns, and this calls for strategic advantages. Here are five key strategies to make the most of your investments in ULIPs.
There are several ways to maximize the returns from ULIP, but starting as early as possible is one of the best techniques to accelerate the returns. Time works very significantly in ULIP returns. Your investment generates return in the form of interest on the original amount and also on the accrued gains over time. When you invest early, you provide sufficient growth period for your investments, which helps build the overall returns.
One of the most critical factors of investing in ULIP is regularity. To get the maximum benefit from your plan, investing in it regularly is very important. Invest in a systematic manner and stick to it. You must invest in the plan irrespective of the fluctuations in the market. If you do so you would be able to benefit from the concept of rupee-cost averaging and, thus, enjoy better returns from the ULIP.
The investor should maximize his returns by diversifying his investment with various options of fund choice according to his risk tolerance. Equities have higher growth potential while at the same time debts are generally rated for stability and income generation. You could invest as per your needs in such options. By spreading your investment, you can generally reduce risk according to the terms of the marketplace.
Regular reviewing and analysis of the portfolio is very necessary to make the most of your investment in ULIP. It is important to keep monitoring the performance of chosen funds. They should also be aligned with the objectives of investments that you want to achieve as well as your risk profile. It is also necessary to be updated with market trends and other economic indicators so as to make appropriate changes during ULIP renewalif necessary.
ULIPs provide attractive tax benefits to the policy owners. As per section 80C of the Income Tax Act 1961, a taxpayer can claim the premium paid towards ULIP as a tax deduction. In addition, under Section 10(10D), the maturity proceeds and death benefits received from ULIPs are exempted from tax. With these tax benefits, one can reduce his tax liability and increase his returns on ULIPs.
The minimum lock-in period for ULIP plans is an essential feature that plays a significant role in helping you achieve long-term financial growth. The lock-in period ensures your investment stays committed to growing over time, and here's why it’s a great advantage for anyone investing in ULIPs:
The Kotak Life ULIP Policy offers a compelling plan to all those seeking the total life cover solution, thereby providing a gateway for wealth creation. With so many diversified avenues for investment, higher transparency, and the liberty of flexibility coupled with the benefits of life insurance cover and also savings in terms of tax, Kotak Life is now the preferred investor's choice.
With Kotak e-Invest, you can opt for one of the wide variety of funds depending on your risk appetite and financial objectives. It offers something for everyone, be it a conservative or a more aggressive approach. It also provides you with the facility to undertake different fund options like equity funds, debt funds, and balanced funds thereby ensuring that investment stays always aligned with your goals.
It is necessary to keep an eye on your investments. Through Kotak e-Invest, you are persistently updated about the investment performance. It also enables you to change your funds as market conditions and choices of investment keep changing. This is what makes Kotak e-Invest unique, unlike other conventional insurances. It allows you to monitor your investments actively.
Besides the investment aspect, Kotak e-Invest also provides comprehensive life insurance coverage. On the untimely death of the policyholder, the sum assured in unit linked insurance planshall be paid to the nominated beneficiaries as provided in the policy. Therefore, Kotak e-Invest in no way compromises the financial security of the beneficiary.
By staying invested for a very long time, you can enjoy the gains of compounding to help you reach your financial goals, whether it is to fund your child's education, buy your dream house, or retire safely and comfortably. Kotak e-Invest helps you achieve all your financial goals.
Kotak e-Invest enhances your returns by offering tax benefits. Premiums paid qualify for deductions under Section 80C of the Income Tax Act, while maturity and death benefits are tax-exempt under Section 10(10D), subject to specified conditions.
Enjoy the dual benefits of protection and growth with Kotak e-Invest plan.
Invest todayWhether you are an experienced investor or just someone who is interested in ULIP funds for the first time, learning about various ULIP fund options can help you make a better choice and optimize your investment strategy.
Equity fundsare for investors with a higher risk appetite and a long-term investment horizon, say 5-10 years or more. Its performance reflects the highs and lows of markets. You can consider equity funds if you have a good risk appetite and want to create some wealth in the long term.
Debt funds are appropriate for conservative investors who anticipate steady returns with relatively low risk. They invest in government securities, corporate bonds, and other debt instruments. These devices carry low to moderate risk as they are safer.
Funds that invest in money market funds that are owned by banks are known as cash funds. The risk profile of these instruments is extremely low. Therefore, of all the categories of ULIPs, they offer the lowest returns. Cash funds are available as an option for risk-averse investors.
ULIPs provide an opportunity to invest both in equities and debt instruments for balancing risk and return. They suit those looking for a balance between risk and return. Examples of balanced funds would be equity-oriented hybrid funds.
Money market funds invest in short-term fixed-income instruments. They emphasize capital preservation and liquidity. Money market funds within ULIPs are excellent for investors with a very low-risk appetite or seeking parking of funds for a short term.
Some ULIPs offer sector-specific funds. Investments in such funds are focused on specific sectors or sectors of industries, like technology healthcare, or energy. This fund suits investors who have very strong conviction about the specific growth prospects of a particular sector or industry.
ULIP plans for retirement are essentially designed to help a person create his or her retirement fund. As this is a combination of both insurance and investment, such plans help a policyholder secure his or her retirement and, simultaneously, may earn returns from it. Compared with other plans, these have a longer lock-in period; if desired, systematic withdrawals or annuity payments can be available after maturity.
Child ULIPs are created keeping in mind the various financial needs of your child, such as education expenses or marriage. These plans offer a life cover to the parent along with investment options that are in harmony with your goals for your child. Most such plans have a built-in feature whereby future premiums get waived in case of a policyholder's death, thus not interfering with the financial goals of the child.
Investing is not considered as a one-time job. You have to review the funds, continually adjust according to the market changes, and then you can expect excellent returns from it. However, if you find it hard to manage ULIPs, the following are some important considerations with regard to the management of ULIP funds:
If you are waiting for the perfect moment to buy ULIP, there is no perfect time than now. The more you start early, the higher your chances of achieving your goals in Unit linked insurance plans.
When I was planning for my child's future, my friends recommended me about investing in ULIP. The benefits that ULIP offer were very well aligned with my requirements. This is why I started researching and came to know about Kotak e-Invest plan. I went through their online portal and got to know the premiums, returns and everything. I realized that Kotak ULIP plans was the best plan for me, and I bought it.
-Mr. Ambadas Sulakhe
ULIPs are new-age investment instruments that offer tax benefits and market-linked returns. I read about it online and started to think about my investments. I thought this could be a good addition to my financial portfolio. They offer market-linked returns with no Capital gain taxes. And I could easily optimize my returns by choosing the funds wisely. So, I decided to start my Kotak ULIP plan.
- Mr. Darpan V Mehta
Investments have always helped me achieve my difficult life goals. So, I make sure that every month I invest in the right instruments. Just when I was looking for a new investment option, I came across Kotak ULIP plan. They have various plan options; premium payment mode is flexible which is perfect for me. The plan aligned with my requirements and offered excellent returns which makes this one a best ULIP plan for me.
- Ms Munera Janvekar
Kotak ULIP plan is one of the best investment instruments I decided to invest my hard-earned money in. It gives me various fund options that help me manage my portfolio and make sure that my investment is optimized all the time. This way, I can gain returns when the market is high and go for debt funds when the markets go down. A win-win. If you are looking for such a plan, I recommend you to invest in Kotak ULIP plan.
- Mr Sujitbhai Ashokbhai Kanjariya
I was looking for investing a sum of amount that can give me good returns over the long term. I came across Kotak ULIP plan and decided to give it a try. I logged in to understand the plan and their call center executive helped me understand everything about the plan. I went ahead with the plan and the plan is giving me good returns and I can monitor them year on year. If you are looking for a long term investment with solid returns, I recommend you to invest in Kotak ULIP plan.
- Ms Neeti Garg
My friends recommended me to invest in an ULIP plan when they came to know that I am planning to buy a house in the future. I went online, spoke to my friends and came across Kotak ULIP plan. I registered on their portal where they showed me all plans, premiums and returns upfront. I completed the application process upload documents and made my payment. I was happy to make this decision as I can now monitor my returns and make a fund switching decision when required.
- Mr Santosh Kumar
When choosing from the best ULIP plans in India, it's essential to consider factors such as fund performance, flexibility, charges, lock-in periods etc. to ensure it aligns with your long-term financial goals.
Fund performance in ULIP plans depends on market trends, asset allocation, and fund manager expertise. Equity funds offer higher returns but come with risks, while debt funds provide stability. Regularly tracking NAV and past performance helps in making informed decisions. Choosing a well-managed fund ensures optimal growth and aligns with long-term financial goals.
Before choosing a ULIP, understand your financial goals—whether you want to build wealth, save for your child’s education, or plan for retirement. For example, if you aim for long-term wealth creation, an equity-focused ULIP may be suitable, while a balanced or debt-oriented ULIP works better for stability and lower risk.
Different ULIP plans offer investment choices like equity, debt, and balanced funds. Choose a plan that allows easy switching between these options based on market conditions. For instance, if the stock market becomes too volatile, you can shift from equity to debt funds to protect your investment.
ULIPs come with charges such as premium allocation, fund management, mortality, and policy administration fees. Compare these costs across plans to ensure they don’t eat into your returns. For example, a ULIP with lower fund management charges will allow more of your money to be invested, leading to potentially better returns over time.
ULIPs have a mandatory five-year lock-in period, making them ideal for long-term investments. Additionally, premiums paid qualify for tax benefits under Section 80C, and the maturity proceeds may be tax exempt under Section 10(10D). For example, if you invest ₹1.5 lakhs annually in a ULIP, you can claim it as a deduction under 80C, reducing your taxable income.
If you seek both financial security and market-linked growth, choosing the best ULIP plan in India can help you achieve structured and flexible wealth creation. They allow you to invest in equity, debt, or balanced funds based on your risk appetite while ensuring financial protection for your family. With tax benefits under Sections 80C and 10(10D), ULIPs help in efficient tax planning.
The flexibility to switch funds based on market conditions lets you manage risk and optimize returns. A five-year lock-in period encourages disciplined investing, making ULIPs ideal for wealth creation, retirement planning, or securing your child's future. If you seek both financial security and market-linked growth, ULIPs offer a structured and flexible way to achieve your goals.
The best ULIP funds can be chosen according to various factors, like risk tolerance, investment horizon, and financial goals. Here are a few categories of ULIP funds along with their suitability:
Equity funds are for Investors with a high-risk appetite and a long-term investment perspective of at least five to ten years or more. The ups and downs of the market will reflect their performance. You can opt for equity funds if you have a good risk appetite and want to create some wealth in the long term.
Debt funds well suited for conservative investors who want steady returns with lower risk. These invest in government securities, corporate bonds, and other debt instruments. These plan are safer because they offer low to moderate risk levels.
Cash funds are those funds that invest in bank-owned money market funds. They carry a very low-risk profile. As a result, of all the categories of ULIPs, they offer the lowest returns. Risk-averse investors have the option of choosing cash funds ULIPs.
ULIPs also allow investment in equities and debt instruments to ensure a proper mix of risk and return. These are most suitable for investors, who want a good balance between risk and return. Examples of balanced funds could be equity-oriented hybrid funds.
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Invest todayTo purchase unit-linked insurance plans online, follow these simple steps:
If you Are considering purchasing a ULIP, it Is essential to understand the documentation required to initiate the process. Here is a list of the commonly required documents:
The popular choices often compared are Unit Linked Insurance Plans (ULIPs) and other traditional investment instruments. Let’s compare the features and benefits of ULIPs compared to mutual funds & fixed deposits.
When an individual invests in a ULIP, the insurance provider allocates units based on the prevailing Net Asset Value (NAV) of the fund. The NAV changes with the performance of the underlying assets, reflecting the fund's growth.
ULIP insurance plans provide access to various asset classes, including equities, bonds, and money market instruments. This diversification reduces the risk associated with investing in a single asset class and enhances the potential for higher returns.
ULIPs allow flexibility regarding switching between funds if the market conditions and the financial goals change. For instance, if markets are volatile, an individual can switch their funds from equity to debt during instances of volatility to protect their gains.
ULIPs provide tax benefits under Section 80C of the Income Tax Act, where, on the amount paid towards premium, one can claim a deduction up to a certain limit. The maturity proceeds received on the policy are tax-free under Section 10(10D) of the Income Tax Act. Choosing the best ULIP insurance plan allows you to balance risk and return while benefiting from tax savings and long-term wealth accumulation.
Thelock-in period of ULIPsplans encourages long-term investing, which is very important to build substantial wealth. Staying invested for long periods of time enables compounding to work its magic and generate significant returns.
While ULIPs are an investment product, they also offer the policyholder with life insurance coverage and ensure his family is taken care of in case of any untoward eventuality.
Unit linked insurance plans offer a chance to grow your wealth while simultaneously providing cover against financial shocks. Of course, one of the major attractions for joining any ULIP scheme is the tax benefits they provide.
Premium paid for ULIP plans are eligible for deduction underSection 80Cof the Income Tax Act, 1961. According to the latest tax regulations, the amount that can be deducted under this section of tax during a financial year is ₹1.5 lakh. However, this amount is deductible for only the premium paid and not for the total investment into the ULIP.
Most importantly, under Section 10(10D) of the Income Tax Act, proceeds at maturity, including investment income, are tax-exempt but subject to conditions specified under the Income Tax Act. To avail this benefit the annual premium should not exceed 10% of the sum assured and Annual aggregate premium should be upto Rs.2.50 lakhs.
This switching flexibility in Unit linked insurance plans also allows an investor to switch between two or more funds depending upon the market situations or investment preferences. The best part, of course, is that such switches are tax-exempt. You can optimize your investment by taking benefits of market movements without incurring any tax consequences.
The policyholder, under ULIP policy, is permitted to withdraw a part of the investment at specific terms and conditions. The amount withdrawn is tax-exempt under section 10(10D) subject to conditions specified under the Income Tax Act.
It is very important to maintain the policy for a minimum period to avail of the tax benefits. Tax benefits availed during the policy period will be added back to taxable income if the policy is discontinued within five years from the date of commencement.
ULIPs have long been a topic of debate in the world of investments. While some investors hail them as a flexible and efficient investment avenue, others harbor skepticism and believe in several myths associated with ULIPs.
One of the most common misconceptions that revolves around ULIP plans is that they are very costly. ULIP plans do carry certain charges associated with them. Many investment options also have charges, for example, mutual funds orportfolio managementservices.
Another commonly believed myth relating to ULIP plans is that they bring about poor returns compared to other investment options, including mutual funds or direct equity. The returns from a ULIP depend on various factors - your investment horizon, the chosen fund options, and the insurer's track record.
With some investors too counting the lack of transparency as one reason to hesitate while actually making investments, ULIP plans are regulated by the IRDAI, ensuring that the insurance company discloses all necessary information relevant to the plan.
Although the minimum lock-in period for ULIP plans under IRDAI regulations is five years, it also gives investors an opportunity to receive compounding powers that work long-term.
ULIP plans indeed provide life insurance, but they are also an investment product. They provide a dual advantage of insurance protection and another of potential wealth creation through market-linked returns.
A common myth about ULIPs is that they are highly risky investments. While ULIPs do carry market-related risks, the level of risk depends on the chosen fund type. Equity-based ULIPs may be more volatile but offer higher long-term returns, whereas debt-based ULIPs provide stability and capital preservation, making them ideal for conservative investors. By diversifying across funds and staying invested for the long term, investors can effectively manage risk and maximize returns.
Finding the best ULIP depends on investment objectives, risk appetite, and current financial requirements. You should look out for factors that differentiate one ULIP offering from the other such as fund performance, charges, flexibility, and customer service.
ULIP plans will appeal to anyone who seeks a holistic package of risk coverage with growth potential. ULIP plans offer the scope to participate in the market while at the same time providing life insurance protection. The very reason for going in for a unit-linked insurance plan is that they offer the flexibility to choose investment funds based on risk appetite and investment goals.
ULIP plans are primarily for long-term investments. It usually comes with a lock-in period of five years, so it is recommended that you don't withdraw the money in between, but instead let it stay invested for as much time as possible so you can reap maximum returns. Along with that, you also get to enjoy the compounding effect of the returns, thus you can see your investments grow.
Yes, you can cancel or surrender a ULIP during the lock-in period. Surrendering a ULIP before the end of the lock-in period will attract charges along with penalties that will impact the surrender value very severely. You can surrender a ULIP after the completion of the lock-in period without paying any charges.
ULIP plans allow taking back any amount from the plan after it has completed its lock-in period, which, in most cases, is for five years subsequent to the date of purchase. Once the lock-in period is over, you may partially withdraw or surrender the ULIP in full without any charges or penalties being levied on you.
Normally, ULIP plans come with a lock-in period of five years from the purchase date. Once the lock-in period expires, you are free to withdraw the amount partially or fully without any charges or penalty.
ULIPs have various charges associated with them. Some common charges include:
It is important to carefully review the policy documents to understand the specific charges applicable to your ULIP plan, as they can vary between insurance providers and policies.
The NAV is calculated by dividing the total net assets of the fund by the number of units outstanding. The fund value of your ULIP plan is determined by multiplying the number of units held in each fund with the respective NAV of those units.
ULIP is the short form for Unit Linked Insurance Plan. ULIP plans are insurance products that have features of life cover with the ability to invest. However, unlike a conventional savings account or fixed deposit, ULIP plans do not offer a fixed rate of interest. Instead, the returns on any ULIP are directly dependent on the investment funds' performance, and that periodically changes according to the market conditions.
ULIPs offer several advantages that make them a popular choice for individuals seeking both insurance coverage and investment opportunities:
You can reduce risk on your ULIP investment by considering the following strategies:
A: ULIPs (Unit Linked Insurance Plans) and Traditional Plans differ in various aspects:
It is important to evaluate your financial goals, risk tolerance, and preferences before deciding between ULIPs and Traditional Plans.
The tax treatment of ULIP plans (Unit Linked Insurance Plans) depends on various factors that are eligible under the income tax laws. A tax deduction may also be claimed in respect of premiums payable towards a ULIP on specific sections of the Income Tax Act.
The minimum premium payable for various ULIP plans differs according to the insurance companies and the particular ULIP product provided. Different ULIP plans have different premium payment options.
Yes, under the facility of switching offered by most of the ULIP plans, you can switch between different funds based on specific investment goals and risk capacity. For most ULIP plans, the policyholder can switch their investments between various available funds offered by the insurance company
Yes, a few ULIP plans allow the facility to take up a loan against the policy. However, such an option is subject to the discretion of the insurance companies and ULIP products. Normally, such loans can be available as a percentage of the ULIP fund value.
The ULIP plans proceeds received at maturity along with extra benefits is exempt from tax under Section 10(10D) of the Income Tax Act, subject to certain conditions. Consult a tax consultant who will provide you with taxation details based on your case.
ULIP plans are a financial product wherein an investor gets benefits from insurance and also the option to invest in several funds. SIP is that investment plan wherein a fixed amount is invested in mutual funds regularly for a period. This investment avenue helps yield the true benefit of rupee cost averaging and compounding. ULIP plans provide insurance coverage along with other investment options, whereas SIPs are purely investment-oriented and do not offer any insurance protection.
You may avail of tax benefits under Section 80C and Section 10(10D) of Income Tax Act, 1961 subject to conditions as specified in those sections. Tax benefits are subject to change as per tax laws. Customer is advised to take an independent view from tax consultant.
The calculation is generated on the basis of information provided and does not constitute an offer or solicitation for the purpose of purchase or sale of any product. Further customer is the advised to go through the sales brochure before conducting any sale.
Some ULIP instruments offer you an option of partial withdrawals. There are various conditions under which this can be done, but it varies from product to product.
Applicable Rider Charges will be deducted from the Fund value if the Riders are chosen. There are different rider options that can enhance your protection and it is recommended that you check them out.
If the policyholder does not agree to the terms and conditions mentioned in the policy document, he/she can always return the policy. This can only be done within 15-30 days of accepting the policy depending on the channel through which the policy was bought. This period is called free-look period and the insurance company should refund the premium to the policyholder.
There are a few charges which can be deducted before the refund-
The premium figures are net of Goods and Services Tax and Cess, as applicable. Goods and Services Tax and Cess rates are subject to change from time to time as per the prevailing tax laws and/or any other laws.
Tax benefits are subject to conditions specified under the Income-tax Act, 1961. Tax laws are subject to amendments from time to time. Customer is advised to take an independent view from tax consultant.
The Unit Linked Insurance Products do not offer any liquidity during the first five years of the contract. The policyholder will not be able to surrender /withdraw the monies invested in Unit Linked Insurance Products completely or partially till the end of the fifth year from inception. Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. Please know the associated risks and the applicable charges (along with the possibility of increase in charges), from your Insurance agent / Corporate Agent / Insurance Broker / Intermediary or policy document of the insurer. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. All benefits payable under the Policy are subject to the Tax Laws and other financial enactments, as they exist from time to time.
This website content is not a brochure and only gives the salient features of the plan.
Kotak e-InvestUIN – 107L121V02, Kotak e-Invest; UIN – 107L121V02. This is a non-participating unit-linked life insurance individual savings product. Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
Kotak T.U.L.I.PUIN: 107L131V02. This is a non-participating unit linked Life Insurance Individual Savings Product. This product is available for sale through online mode. For more details on risk factors, terms and conditions please read sales brochure carefully before concluding a sale. For more details on riders please read the Rider Brochure.
Kotak Invest MaximaUIN: 107L073V05. Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
Kotak Single Invest AdvantageUIN: 107L065V05, This is a Non-Participating Unit-Linked Life Insurance Individual Savings Product. Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
Kotak PlatinumUIN No.: 107L067V07. This is A Non-Participating Unit-Linked Life Insurance Individual Savings Product. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
Kotak Wealth Optima PlanUIN: 107L118V03 This is a non-participating unit-linked life insurance individual savings product. For more details on risk factors, terms and conditions, please read sales brochure carefully before concluding a sale. For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
The assumed non-guaranteed rates of return chosen in the illustration are 4% p.a. and 8% p.a. These assumed rates of return are not guaranteed and they are not the upper or lower limits of what you might get back as the value of your policy is dependent on a number of factors including future investment performance. The actual experience may be different from the illustrated. Please note that Bonuses are NOT guaranteed and may be as declared by the Company from time to time.
Section 41-
Extract of Section 41 of the Insurance Act, 1938 as amended from time to time states: (1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. (2) Any person making default in complying with the provisions of this section shall be liable for a penalty which may extend to ten lakhs rupees.
Section 45-
Fraud and Misstatement would be dealt with in accordance with provisions of Section 45 of the Insurance Act, 1938 as amended from time to time. Please visit our website for more details: Read more about section38_39_45_of_insurance_act_1938
BEWARE OF SPURIOUS PHONE CALLS AND FICTITIOUS/ FRAUDULENT OFFERS
IRDAI is not involved in activities like selling insurance policies, announcing bonus or investment of premiums. Public receiving such phone calls are requested to lodge a police complaint.
Regd. Office: Kotak Mahindra Life Insurance Company Ltd. Reg No. 107; CIN : U66030MH2000PLC128503; Regd. Office: 8th Floor, Plot # C- 12, G- Block, BKC, Bandra (E), Mumbai – 400051 | Website: www.kotaklife.com |
WhatsApp: 9321003007 | Toll Free: 1800 209 8800 | ARN No. KLI/24-25/E-WEB/2155
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