Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Lifetime Income Plan

Retirement years are the golden years of life. Know more


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.

How Does ULIP Work in India?

ULIPs allow you to create wealth for your long-term goals with the added protection of life insurance. Click here to understand how ULIP works and its features.

  • Mar 07, 2022

The primary goal of an insurance plan is to ensure your loved ones’ financial protection and safety in case of circumstances uncalled for. You can choose from a range of schemes based on your life stage and needs, such as pure insurance, savings, children’s education, pension (wealth generation), and so on. The Unit Linked Insurance Plan is one product that may be used as both an insurance and an investment tool (ULIP). When you buy a ULIP plan, a portion of your payment goes towards insurance, while the remainder is allocated in equity or debt funds based on your preferences. You can pick from a variety of plan options, each with a different budget allocation to equities and debt. Let’s take a look at how it works.

How does ULIP work?

When you invest in a Unit Linked Insurance Plan, the chosen insurer collects money from all customers and invests it in funds that they select. The overall sum is partitioned into ‘units’ with a specific face value once the money has been invested. Also, the sum invested is then divided into ‘Units’ for each particular investor.

The Net Asset Value, also commonly known as NAV is the value of each unit at any given time and the effect of changes in the value of the portfolio is represented in the NAV. If you make a partial withdrawal from the cash reserve (according to the policy’s terms and conditions), the corresponding number of units are sold. In the same way, some policy fees are subtracted in the form of the number of units.

Some Features


Some ULIP plans let you look into both your current and future investments by allowing you to transfer assets from one fund type to another in a structured manner depending on the type of risk appetite you have. They also enable you to effectively manage your assets in order to maximize the returns on your investment.


You can convert your current investment from one plan type to another using Unit Linked Insurance Plans. This switching system enables you to shift all of your funds according to your market view and life stage.

You must always start your investing and insurance adventure by determining how much coverage you require. That bit is crucial as it gives you an overview of what your future might look like with your loved ones. It is important to note that the initial five years of the contract will provide no liquidity with respect to the connected insurance products. The policyholder will not be allowed to entirely or partially surrender/withdraw the funds invested in the ULIP plan until the conclusion of the fifth year.

How are ULIPs any different?

Unit Linked Insurance Plans are different from standard financial products as they have many risk-associated factors. The premium paid in the best ULIP plans are vulnerable to a variety of investment risks connected with financial markets, and the NAVs of the units may rise or fall depending on the performance of the fund and the variables influencing the capital market.

Now that you have some basic understanding of how ULIP plans work, you can go ahead and make some comparisons to invest in one that best suits your needs and requirements!

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

Do ULIPs Give Good Returns On Investments?

What is Partial Withdrawal in ULIPs?

Types of Pension Plans for Your Retirement

Top 6 Flexible Benefits That ULIPs Offer

Who Gets the Benefit After the Maturity of ULIP: The Proposer or The Life Insured?

Annuity Plan | How to Choose the Right Annuity Plan | Kotak Life

A Quick Guide to Retirement Plans

ULIP Plan or Traditional Insurance Plans - Which is better?

How Do Annuity Options Work In NPS

Difference Between Unit-Linked Insurance Plans and Non-Linked Plans

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

What are the things to consider before buying ULIPs?

Retirement: A New Start to Life!

Why You Should Invest In An Annuity Plan?

How Does NPS Work?

At What Age Should You Start Your Retirement Planning?

Can I Surrender My ULIP Policy after 2 Years?

Retirement Planning Guide for Working Men and Women

Demystifying the Retirement Planning Process

Retirement Planning for Millennials

Best Insurance Plans for a Guaranteed Monthly Income After Retirement!

How Does Pension Plans in India Works?

What Are Superannuation Benefits?

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

Why Should Retirement Planning Be on Top of Your Priority List?

Pros and Cons of Retirement Annuities

ULIP: Can You Surrender ULIPs or Withdraw Money from It?

What is the Death Claim Payable in the Case of ULIP?

Does Having Both ULIP Plan and Other Health Insurance Plan Make Sense?

Retirement Planning Guide: These 5 Steps Will Help You Towards a Safe, Secure and Fun Retirement

What are the Benefits of ULIP - Explained

What tax benefits are there on saving for retirement?

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

Terminologies You Should Understand About Retirement Plans

Is it possible to live a financially independent life, even after you retire?

10 Steps to Figure Out How Much Money You Will Need For Your Post Retirement Plans

5 Common ULIP Myths That You Should Stop Believing

Worried About Running Out of Money in Retirement? 4 Tips to Avoid This Crisis

What are the Instruments Available for Building a Retirement Corpus?

Important Questions To Ask Yourself Before Choosing A Good Retirement Plan

What is a Defined Benefit Plan and How it Works?

How has ULIP Grown Over the Last 3 years?

Which Is Better: ULIP or SIP?

Retirement and Pension Plans in India- What are Your Options?

Why Should You start Retirement Planning as soon as you start a job?

Benefits of Early Retirement Planning in India

How can NPS help you save tax?

What are ULIPs and their Types?

Do Pension Plans Allow any Death Benefits?

What are the 4 Financial Phases of Retirement? How to Budget For Each One?

What is the difference between Life Insurance and ULIP?

EPF Grievance Management: All You Need to Know

How To Choose The Right Pension Plan?

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

Importance of Retirement Planning

Is ULIP A Good Investment Option?

How to Maximize Your Retirement Savings with a Pension Scheme in India

Long Term Investment Guide for Your Retirement

यूलिप में 8 शुल्क जो आपको अवश्य जानना चाहिए

How should one decide on fund allocation within NPS?

What is a Retirement Plan - What are its Features?

Getting Close to Retirement? Six Key Retirement Planning Tips That Can Help You Retire

Top Investment Options for Retirement Planning

How To Make Most of Your Money After Retirement?

What are the Charges Levied on ULIP?

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

What is the Difference Between EPF, VPF, and PPF? What are Their Tax Benefits?

Un-Retirement - Are You Ready For It?

What are the minimum and maximum investment in ULIP? Would the Whole Amount Insured in The ULIP Insurance be Invested in the Market?

Top 6 Reasons Why You Should Get A Pension Plan

Ten Signs That You're Ready to Retire

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

Retirement Planning at 50? You Are Still Good to Go

What is the Minimum Lock-in Period for ULIP?

Tips to invest your voluntary retirement scheme money

What are the Chances of Losing all my Money in ULIP and How Much Return Should I Expect?

Invest for your second innings with a guaranteed savings plan

Saving for approaching retirement with retirement insurance

Is It Worth Buying ULIP Plans For 10 Years?

Why Should You Invest in NPS?

What To Do With Your Retirement Accounts During An Employment Lapse?

Calculating a Retirement Corpus that can Support Your Lifestyle

What are the Differences Between ELSS ULIP and Mutual Funds?

How Much Corpus Does One Need for Retirement?

What are the Rules for Exit From NPS?

How To Keep Your Retirement Accounts from Being Hacked?

Types of Retirement Plans

Benefits of Early Retirement Plans

A Beginner's Guide to Understanding 401k Retirement Plan

Is it Advisable to Withdraw the ULIP Insurance Policy After 5 Years?

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

6 Signs That You Are Not Financially Ready For An Early Retirement

Looking for Ways to Earn Lifetime Income in Retirement? Here Are 6 of the Top Options

Different Types of ULIP Investments in India

Retirement planning with a systematic life insurance plan

यूलिप और उनके प्रकार क्या हैं?

How Can I Achieve My Wealth Goal with ULIP Investment?

Why ULIP Should Be a Part of Your Investment Portfolio?

How To Calculate The Present Value And Future Value Of Annuities?

ELSS vs ULIP: Which is a Better Investment?

5 Retirement Planning Tips for a Financially Controlled Post-Employment Life

Top 4 Mistakes To Avoid While Planning For Your Retirement

10 Steps to Figure Out How Much Money You Will Need After You Retire

Is ULIP a Good Option for People Above 60?

How to Build a Tax-Free Pension Income for Retirement?

What are the Uses of ULIP?

Understanding Annuity Plans

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

What Happens to ULIP Premiums Paid if the Market Crashes?

The Significance of Number 8,000 in Retirement Planning

Can NRIs Invest in ULIP Plans Offered in India?

What Are Mortality Charges In ULIP?

Benefits Of Retirement & How Investments Can Help You Enjoy Them

Importance of financial Planning for Retirement

Are Annuities Great For Early Retirement?

Top 4 Myths About ULIP Investments You Should Know

How Quickly is Fund Switch Effected in ULIPs? Is it Done the Same Day or After a Particular Number of Days?

How to Win at Retirement Savings?

What Are Retirement Pension Plans?

What is Fund Value in ULIP?

Which Pension Plan Suits You best?

Types of Annuity Plan | Annuity Definition - Meaning & Key Benefits

NPS for Housewife

Retirement Planning: Use our Retirement Calculator to Plan Ahead

Different Types of Retirement Schemes

What is Lock-In Period in ULIPs?

5 Notable Investment Options for Retirees

What is an Annuity Plan, and How Does Annuity Plan Work?

Inflation: A Key Factor to Consider into Retirement Planning

Save Early to Keep Living Your Dreams Post Retirement

Give Your Retirement Savings A Booster-Shot with Annuities

Retirement Planning - How To Calculate Your Retirement Premium in India?

FAQs on Taxation of ULIPs

Is it Suggestible to Take a ULIP Plan Linked with a Term Plan?

How Has NPS Performed in Comparison with Other Instruments?

Meaning of Sum Assured in a ULIP

Advantages of Pension Schemes and Retirement Plans

Here's What Retirement Would Look Like 30 Years From Now

How Safe is it to Invest in ULIP plans?

Is ULIP Better Than FD?

5 Steps to Gift a Smart Retirement Plan to Your Parents

7 Secrets that can Make Your Post-Retirement Phase Prosperous

Are You Planning an Early Retirement? Here's Why Buying Annuity Plan Will Make Sense

Know Why You Should Stay Invested in Your ULIP Plan

ULIPs or Pension Plans – Which is a Better Retirement Plan?

Is ULIP a Complex Financial Product?

5 Reasons to Buy ULIP for a Secured Financial Future