The main draw for a unit-linked life insurance plan is that it comes with the twin benefits of life insurance and market investments. However, as with any investment, putting your money in it at the right time is highly important. So, when is the right time for a ULIP investment? Let’s find out!
When is a good time to invest in Kotak e-Invest Plan?
Kotak e-invest plan is basically a unit-linked life insurance plan. As such, you can invest in it any time and get good returns. But you must be better prepared to meet market volatility. Thus, the market conditions should not be a factor to consider while investing in ULIPs.
In addition to that, the ability to compound your returns will always come in handy in the long run. You keep reinvesting in the plan as per the tenure and guidelines of the policy and watch your wealth grow. With that being said, let’s show you specific scenarios and how a ULIP can help you in all these cases.
Situations when it’s best to invest in ULIPs
As mentioned before, you can invest in Kotak e-Invest Plan anytime. Even then, here’s outlining two specific situations where such an investment can be suitable for you:
When you have just started working
Investing in ULIPs when you are young comes with its own set of perks. First off, you get to invest for a longer duration. This helps you leverage the power of compounding and gives you a longer timeline to accumulate wealth.
For instance, you can invest in Kotak e-Invest Maximizer Option to earn substantial returns. This option provides benefits like return of mortality charge, maturity benefit, and death benefit.
Also, if you are single during this time and have no dependents, then you can go for riskier investments. As such, you can invest in fewer debt funds and more equity funds in your portfolio. Equity funds might be riskier, but they help you earn better returns in the long run.
Plus, if you have just joined the workforce, then now is the time for you to learn about money management and saving money. With a lock-in period of five years, it can be an assured way to make your money grow.
When you are married and have financial goals
Regardless of whether you are young, single, or married, if you have a clear financial goal in mind, then investing in ULIPs is a smart thing to do. For instance, say you want to invest in a ULIP for ten years and have just started working. After five years, you plan to get married, and in the five years after that, you plan to buy your own apartment.
So, in the initial five years, you can take more risk by investing in equity funds. After marriage and in the last four to five years, you lean more toward debt funds. At the end of this period, you earn a sufficient corpus to make the down payment for your new apartment.
To sum it up, the right time to invest in a unit-linked life insurance plan is now. So, what are you waiting for? Contact your bank right away!
Visit here to know more about Kotak Life ULIP Policy: https://www.kotaklife.com/online-plans/ulip-plan