A Unit Linked Insurance Plan (ULIP) comes with several benefits. The fact that they have an insurance and investment component is definitely a good start. In addition to that, a ULIP is a great plan for stable fund generation. The Kotak e-Invest offers flexibility to choose an investment strategy, and it offers 100% allocation on your premium.
Along with this, there are three different plan options-
This plan helps you increase your returns.
The Rising Star
This plan helps parents get benefits to fund their children’s goals.
The Retire Rich
With this option, you can start saving early for your retirement.
The Kotak e-Invest Plan is an ideal ULIP for fund generation as it can offer stable returns at low risk.
Minimal associated charges
There was a time when ULIPs came with a host of associated charges. But with the increasing demand for ULIPs and more providers offering them, hefty associated charges are now a thing of the past. In fact, when you invest in Kotak e-Invest Plan, you will not have to worry about high additional charges. The idea is to let investors like you optimize your earnings. Bidding goodbye to that slew of charges means that you can generate better returns from a ULIP.
A balanced investment avenue
Though ULIPs have a market-linked component, you get to choose from a wider range of funds that include both debt and equity.
You can stay safe throughout by leaning more towards debt funds, or you can take the risky route with equity funds. Or, you can start with higher equity investments and increase debt investments towards the end of the term. If you balance your portfolio right, then you will keep generating funds on your investment.
The funds are easier to track
Investing in a ULIP means you have a fund manager looking after your investments. In case you have any doubts or queries, you can go ahead and talk to your manager. You can also do your due diligence when you want. Remember that a fund is divided into Net Asset Value, which is the value per unit of the assets subtracted from the value of liabilities in the fund.
You can use NAVs to track how well your fund is doing. If you think that the fund is not doing as well as it should, then you can switch or divert the investments. It will ensure that you get a sufficient payout at maturity.
The flexibility factor in fund choices
As mentioned before, you can choose between different funds and switch up as per the market situation or your own goals. You can switch between funds as many times as you want, and this flexibility factor aids in stable fund generation. With that being said, you need to stay invested in a fund for at least some time to note its performance. You have the option of switching, but you need to use that option really carefully.
A way to develop financial discipline
ULIPs come with a lock-in term of five years. Of course, you can surrender the policy within five years, but you will only receive the surrender value after the lock-in period ends. Apart from ensuring a stable fund generation, ULIPs are a great way to inculcate a sense of financial discipline. You can stay invested on a long-term basis to reach your goals, and ULIPs help you do that effectively.
All in all, you get three-fold benefits from ULIPs. You get investment, insurance, and a way to generate stable returns. How convenient is that! So, now would be a good time to start considering a ULIP scheme.
Click here to know more about Kotak Life ULIP Plan: https://www.kotaklife.com/online-plans/ulip-plan