Kotak Mahindra Life Insurance launch TULIP, combination of term, ULIP

Kotak Mahindra Life Insurance on Wednesday launched a new product, T.U.L.I.P, a term with a unit-linked insurance plan. The product is a plan that gives a life cover up to 100 times the annual premium while permitting customers to earn returns like a ULIP product.

According to the statement by the life insurer, it offers loyalty additions of up to 30 per cent of the fund value as a part of the maturity benefits added by the company. Meanwhile, the company also offers a refund of 2 times the premium allocation charges in the 10th, 11th, 12th, and 13th years.

The policyholders can also avail of a refund of 1 to 3 times the mortality charges from the 11th policy year onwards. The customers also have the flexibility to withdraw money in case of a financial emergency along with other benefits ranging from accidental death and critical illness rider.

Since it is a ULIP plan, customers have 8 fund options to choose from to invest their money.

“T.U.L.I.P offers our customers comprehensive protection like a term plan and also the opportunity to grow their wealth like a ULIP. It is aimed at taking care of our customers' core financial needs,” said Mahesh Balasubramanian, MD, Kotak Mahindra Life Insurance Company.

Balasubramanian added, “We expect the product to drive the combined share of both term and ULIP products. We want to galvanize the product to drive the premium growth of term products to high single-digit from low single-digit and that of the ULIPs from the existing 18-20 per cent growth to mid-twenties and eventually early thirties over a period of time.”