Why is Kotak e-Invest Plan popular and why people invest in it?

There are varied types of long-term investments, and each comes with its own perks and disadvantages. One such popular type of long-term investment is the unit-linked life insurance plan. Ever wondered what makes it so popular among people looking for an investment scheme? Well, read on to find the answer.

Twin benefits in one package

The most important reason behind investing in ULIPs is that it gets you twice the benefits in one package. So, you get both the benefits of insurance and investment in one go. There is no need to buy separate insurance with death benefits because you already get that when you invest in Kotak e-Invest Plan. It simplifies the process of managing your finances.

The lucrative tax benefits

The fact that ULIPs get you exemption-exemption-exemption also adds to its popularity. Let’s explain this further. Under Section 80C of the Income Tax Act, your investment in ULIPs gets tax exemptions up to ₹1.5 lakh. Moreover, the returns you earn also get tax deductions. The insurance payout that your nominee gets also has tax exemptions. So, for anyone who wants to save up on taxes for a long-term period, ULIPs work really well.

The flexibility of the investments

When you invest in Kotak e-Invest Plan, you get the flexibility of investing as per your risk appetite. In most investment schemes, your money is invested in just a single channel for the entire period of investment. However, when you choose ULIPs, your money can either go into equity or debt funds. Or, you can choose to keep a balance between the two. You can start with equity funds as investors typically tend to do and include more debt funds as the plan reaches the end of the tenure.

The option to withdraw your money

In a majority of the investment schemes, you are only allowed to withdraw the funds at maturity. Not when you invest in a ULIP! ULIPs come with the feature of partial withdrawal. So, after the initial lock-in period of five years is done, you are allowed to withdraw from the account. Though it is highly advisable not to withdraw frequently when you are saving up towards a particular goal, the liquidity definitely helps if you are in need of some quick cash.

A guided approach to achieving life goals

Most people invest in a ULIP to achieve their life goals on a long-term basis. Maybe you are saving up to make the down payment for your apartment. Or, maybe you are saving for your child’s higher education. With Kotak Life Insurance’s ULIPs, you can achieve your financial goals easily.

Kotak Life Insurance offers various options like Kotak e-Invest Maximizer, Rising Star, and Retire Rich Plans that cater to your goals. By understanding them, you’ll know which option suits you.

As you can see, there is more than one reason for people to go for ULIPs. In fact, now that you know about its multiple benefits, it is high time for you to consider it as well.

Click here to know more about Kotak Life ULIP Plan: https://www.kotaklife.com/online-plans/ulip-plan