ULIPs are often less preferred by investors considering their risk factors. However, any seasoned investor will tell you otherwise. In fact, the truth is that you can modify the risk as per your financial situation. Moreover, you can get better returns than what you would have by only buying a life insurance policy. With that being said, here are further details on how you can invest in Kotak e-Invest Plan and secure your life. Read on to invest more confidently in the ULIP fund.
Switch between different fund choices
As mentioned before, you can modify the risk factor with a ULIP. You can choose how much risk you want to take as per your risk appetite. ULIP plans let you switch your fund allocation multiple times during the tenure.
So, if you are starting young (which you should!), you have a bigger risk appetite and go for more equity funds than debt funds. As you get married and have dependents to take care of, you can opt for a less risky asset like debt funds. Or, you can keep a balance between the two throughout the tenure.
The ability to secure your family’s future
When you invest in Kotak e-Invest Plan, you get a life cover and that enhances the financial security of your family. Apart from the life cover, ULIPs come with death benefits, which means you can be assured that your family is financially secure even in your absence. Besides, the corpus that you gain can be used for several important life goals, such as higher education for your kids.
Saving up for a secured retirement
You can easily use your ULIP fund to save up a good amount for your retirement. You can start early and invest aggressively in the equity funds that earn you a handsome return. Then, when you inch closer to the corpus, you can reduce the equity investments and lean more towards the debt funds. When you allocate the funds in the right way, you can earn a good amount to retire in peace.
Saving up majorly in terms of taxes
One of the main benefits of ULIPs is that they help you save up majorly on taxes. You can save more when you choose ULIPs than many other investment options. Let’s clarify the tax exemption under ULIPs even further. Under section 80C of the Income Tax Act, the investment in ULIPs gets tax exemptions up to Rs.1.5 lakh. Moreover, the returns you earn and the insurance payout also get tax deductions. So, for anyone who wants to save up on taxes for a longer period, ULIPs work really well.
The bottom line
So, if you have been stopping yourself from investing in ULIPs because you were worried about the risk, your concerns have been mitigated successfully now. It is time now for you to decide which financial goal you want to set for your investment. Is it going to be retirement, your child’s higher education, or buying a house in the future?
Click here to know more about Kotak Life ULIP Plan: https://www.kotaklife.com/online-plans/ulip-plans
