A STUDY ON UNIT LINKED INSURANCE PLANNING SYSTEM WITH REFERENCE TO KOTAK LIFE INSURANCE

Abstract

Unit Linked Insurance Plans (ULIPs) represent a unique convergence of life insurance protection and market-linked investment, making them among the most versatile financial instruments available in the Indian insurance market. This paper presents a comprehensive study of the ULIP planning system with specific reference to Kotak Life Insurance, one of India's leading private life insurers. The study examines the structural architecture of ULIPs, fund allocation mechanisms, regulatory framework under IRDAI guidelines, cost structures including premium allocation charges, mortality charges, fund management fees, and the performance of Kotak's ULIP product portfolio across equity, debt, and balanced fund options. Primary data was gathered through structured questionnaires administered to 100 Kotak Life Insurance policyholders and financial advisors in Hyderabad. Secondary data was sourced from Kotak Life Insurance product brochures, IRDAI annual reports (2020–24), NAV history data, and academic literature. The study finds that ULIPs offer significant long-term wealth creation potential alongside life cover, but policyholder awareness of fund switching, premium redirection, and partial withdrawal facilities remains limited. The study recommends enhanced financial literacy initiatives, digital advisory tools, and transparent charge disclosure to improve ULIP adoption and retention