New Age Kotak e-Invest Policy: How Have ULIPs Evolved?

India’s leading financial service provider, Kotak Mahindra Life Insurance Company Limited, hosts various insurance plans for meeting individual requirements. Currently, it has become much easier to invest in Kotak e-Invest Plan than ever.

Out of all the insurance plans offered by Kotak Life Insurance, the ULIP plan has gained immense popularity. Today, this article will give valuable insights into how ULIPs have evolved with time. Also, you will learn what ULIPs are and how they are beneficial. Let’s begin.

ULIPs – What Are They?

ULIP, better known as Unit Linked Insurance Plan, is a kind of life insurance plan. It is a policy that can provide market-linked returns along with insurance coverage.

The premium amounts invested in ULIP are distributed amongst various funds, and the policyholder benefits according to the market functionalities. When it comes to investing in a ULIP, you will come across various funds. However, you will be able to choose as per the amount of risk you wish to take for investment.

It is because of the risk factor associated with ULIP that it widely differs from regular insurance plans. However, the assured sum doesn’t remain fixed and ultimately depends on the market functionalities.

How Did ULIPs Look Earlier?

ULIPs saw the light of the day for the first time around two decades back in 2001. Nevertheless, this insurance plan was highly popularised only after private life insurers forayed it in 2005. These plans had great potential for quite a long time but only lacked simple awareness amongst people.

Initially, the invested premiums of each ULIP plan came with multiple charges attached to each in the accumulated corpus. Also, various service requests, including switches and withdrawals, were likely to have additional charges. Most of the common applicable charges with every ULIP plan include:

  • Fund Management Charges
  • Mortality Charges
  • Premium Allocation Charges
  • Policy Administration Charges

Some of the features of ULIP plans are:

  • Option for protecting goals under child plans
  • Offering life cover for policyholders
  • The privilege of withdrawing funds after the lock-in period
  • Opportunity to switch between a wide variety of funds

How Do ULIPs Look in the Present Day?

Modern-day ULIP plans are immensely flexible with investments as they provide various benefits at a comparatively lower expense. Since these plans are beneficial to investors, they are highly unique.

Some of the beneficial features of the plans include:

  • Great opportunity for systematic transfer
  • Option for automatic portfolio management
  • Opportunity to rebalance auto funds
  • Capability for protecting returns
  • Options for switching safely
  • Coverage for a lifetime
  • Long-term investors get an additional bonus
  • Opportunity for systematic withdrawal

To Conclude

The ULIP plans of Kotak Life Insurance can be applied and are available online. Log onto the company’s website, and you will find all the details. After giving a thorough reading, you can choose the requisite plans and coverage accordingly.

Click here to know more about Kotak Life ULIP Plan: