Buy a Life Insurance Plan in a few clicks
A plan that works like a term plan, and Earns like ULIP Plan
Insurance and Investment in one plan.
Thank you
Our representative will get in touch with you at the earliest.
In this policy, the investment risk in the investment portfolio is borne by the policyholder.
Kotak e-Invest
Features
Ref. No. KLI/22-23/E-BB/492
ULIP renewal refers to the process of paying your premium to keep your Unit Linked Insurance Plan (ULIP) active and growing after your policy term is over. It ensures you continue to enjoy the dual benefits of investment and life insurance while staying aligned with your financial goals.
Before exploring further, let us first understand what is ULIP plan. ULIPs are insurance plans that combine investment and insurance. While one part of your premium goes toward your life insurance coverage, the other part gets invested in market-linked funds. Renewing your ULIP ensures that your policy continues to work for you, building wealth and offering protection at the same time. ULIP renewal refers to the process of continuing the policy for an additional period after the initial policy term expires. Simply put, you make a recurring payment to keep your ULIP plan active for another term.
During the renewal process, you get the opportunity to make changes to your investment strategy, such as switching between funds or adjusting the allocation of funds. You can also review the sum assured, premium amount, and other policy features to ensure they align with your financial goals. However, note that skipping the renewal could pause or even terminate your policy, causing you to lose out on potential growth and life cover benefits.
Renewing the policy at the right time is essential for several reasons, as failing to do so can affect your financial plan adversely. Here are some factors that emphasize the importance of ULIP renewal:
ULIPs offer you a protective life cover to protect you and your family during any unfortunate incident. Apart from this, ULIPs also offer investment opportunities that help you with capital appreciation. By renewing your policy timely, you can continue to enjoy these benefits in the long run and keep your financial safety net intact.
Whether it is saving for your child’s education, buying a house, or planning for retirement, ULIPs are tailored to meet life’s important milestones. Renewing your ULIP plan means staying on track with these goals. The inability to pay the renewal amount on time can lead to extra charges or discontinuation of the policy, which automatically leaves you with no investment to rely on or no insurance. Therefore, it is crucial to get your ULIP renewed on time, as the last thing you want is to derail your plans by skipping a premium payment.
Renewing your ULIP does not just ensure growth; it helps you save money on taxes, too! As per Section 80C of the Income Tax Act 1961, the premiums you pay are eligible for tax deductions of up to ₹1,50,000 from your total income for that year. This reduces your taxable income and, as a consequence, your tax liability. Renewing your policy will help ensure you enjoy the tax deduction benefits.
It is essential to pay the ULIP premium on time because a late payment may result in additional fees that reduce the benefits of the plan. After the policy has completed its tenure, it needs to be renewed. You can renew your ULIP in various ways by paying the premium. The premium can either be paid online or offline. In addition, there are several options available for you to get your policy renewed.
Paying the ULIP renewal amount via cheque is one of the most conventional offline modes. You can either drop the renewal amount cheque in the drop box of your insurance branch, or you can submit your cheque at the insurer’s office. Make sure to mention your policy number on the cheque to avoid confusion.
ULIP premiums through ATMs are another offline ULIP renewal mode that some insurers offer. This method is quick and does not require any paperwork. You can pay your renewal premium through bank ATMs by simply following the instructions on the ATM screen and you are good to go.
If you are someone who often misses their due dates due to a busy schedule, this option is great for you. It is an easy way of paying the premium amount without missing any premium payment. You just need to activate the auto-debit facility on your bank account or credit card, and your ULIP premiums will be deducted automatically on the due date.
To enjoy the benefits of ULIP, you can opt to pay for online premium payments. This is the easiest and most popular method these days. To begin with this, you need to log in to your insurer’s website or mobile app, enter your policy details, and make the payment using net banking, credit cards, or UPI. The process is hassle-free and takes just a few minutes.
Online renewal is super convenient, but here are a few things to keep in mind when opting for ULIP renewal online:
Offline renewal might involve a bit more effort, but it is still very effective. Here are some things to consider while renewing your ULIP offline:
It is important to be sure of the due date whether opting for online or offline renewal. Make sure to renew your policy before the due date, as failing to do so could result in your policy lapsing.
The premium will be based on your current fund value and the premium paying term. You can find the renewal premium in your policy documents or by contacting your insurer.
You can pay your renewal premium by cheque, demand draft, or cash. If you are paying by cheque, make sure to write your policy number and contact information on the back of the cheque.
You can submit your policy payment at your insurer’s branch, by mail, or at an authorized bank partner collection center. If you are submitting the payment in person, make sure to get an acknowledgment receipt from your insurer.
After submitting your payment, you can check the status by contacting your insurer or logging into your online account.
Now that you know how ULIP works and the significance of renewal in ensuring your long-term growth and financial security, you can make smart decisions. By paying your premiums on time, you enjoy uninterrupted life insurance, steady investment growth, and attractive tax benefits under Section 80C. Whether you choose online or offline methods, renewing your ULIP ensures you continue to enjoy the dual advantages of wealth creation and protection.
Remember, it is not just about keeping your policy active but also about staying committed to your life goals and financial security!
1
No, you cannot surrender your ULIP before the lock-in period without penalty. The lock-in period is a term during which you cannot surrender your policy without incurring a penalty. The penalty is usually a percentage of the surrender value of your policy. The lock-in period is typically 5 years, but it can be shorter or longer depending on the plan.
2
To renew a ULIP policy, simply pay the renewal premium before the due date using your preferred payment method. You can do this online, through auto-debit, by cheque, or at the insurer’s office. Ensure you keep track of the payment and confirm its status for uninterrupted policy benefits.
3
Yes, ULIP policies can be renewed online. Visit your insurer’s website or app, log in with your policy details, and make the payment using debit/credit cards, net banking, or UPI. This method is quick, easy, and saves you time.
4
Generally, you only need your policy number and payment details for renewal. However, in some cases, you might be asked for ID proof or additional documents, especially if there are changes in your policy or contact information.
5
The renewal premium depends on your policy terms, the coverage amount, and the investment allocation chosen in your ULIP plan. Your insurer provides the exact premium details, ensuring they align with the policy benefits.
6
No, the premium amount cannot be changed during renewal. However, you can make changes to the investment allocation or coverage amount by contacting your insurer and following their guidelines for policy modifications.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
In this policy, the investment risk in the investment portfolio is borne by the policyholder.
Kotak e-Invest
Features
Ref. No. KLI/22-23/E-BB/521
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
Kotak e-Invest helps you build wealth & protect your family using just one plan.
