Kotak Mahindra Investment Plans

Kotak Mahindra Old Mutual Life Insurance Company

Kotak Life Insurance (Kotak Mahindra Old Mutual Life) is a joint venture between India’s eminent bank, the Kotak Mahindra Bank Ltd., and one of the world’s highly acclaimed investment group, Old Mutual. While the former holds a 74% stake in the company and is known for rendering avant-garde financial services in the country, the latter holds a 26% stake in the insurance company, and provides asset management, banking, & insurance solutions to individuals & organizations across Europe, America, Africa, and Asia. In India, the insurer serves 4 million customers and helps them to achieve their financial goals and protection requirements, through an exceptional range of cost-effective products.

Kotak Mahindra Old Mutual Life Investment Plans

As the bread-earner of the family, you would always want to set your family on the path of financial security, while you’re alive and after you’re gone. Kotak Mahindra Old Mutual Life offers a bouquet of unit-linked insurance plans that help you create wealth over a period of time, which can become a source of funding that you can utilize for supporting your family’s requirements and fulfilling their dreams. They also help to minimize the financial impact and ease the burden on your family, in case any unforeseen exigency occurs. These plans come with a great level of flexibility by allowing you to switch between funds and redirect future premiums, so that you are assured of maximum returns on your investment. Further, if need be, you can also withdraw funds or add funds, as per your financial status and commitments.

Investment Plans

Investment plans serve as a great tool for ensuring the financial well-being of your family, by providing you with a lump sum at the end of a specific period of time chosen by you, and rendering an amount to your family to compensate for the loss of income, if you encounter any unfortunate incident. These plans offer a variety of funds, wherein you can invest your premiums, according to your risk-taking capacity and investment objectives. At policy maturity or on death of the insured, the fund value of this amount is returned to the policyholder/beneficiary.

Common Features of Kotak Mahindra Old Mutual Life Investment Plans: A variety of Investment Strategies to choose from
Option of choosing from a range of funds as per your risk appetite
Liberty to switch between funds
Facility of Premium Redirection
Provision of making partial withdrawals
Availability of three settlement options at maturity
Income tax benefits

List of Different Investment Plans Offered By Kotak Mahindra Old Mutual Life Insurance Company, With Features, Benefits And Eligibility

Kotak Platinum

Features:

• A Unit-Linked Life Insurance Plan with low charges
• Owing to low premium allocation charges, you can tap maximum returns on your investments over the policy term
• Take your pick from three investment strategies – Self Managed, Age-based, & Systematic Switching
1. Self Managed Strategy: This enables you to manage & control your investments the way you desire by parking the money in your preferred funds. There are as many as 7 funds to choose from, with each of them having different risk profiles, so that you can make your choice according to your risk bearing capacity and financial goals.

Classic Opportunities Fund: Offers long term capital growth by investing in large & medium sized company equities 

Frontline Equity Fund: High level of capital growth by parking the funds in large sized company equities

Balanced Fund: Maintains a balance by investing in equities as well as fixed interest instruments

Dynamic Bond Fund: Preserves the capital by investing in high quality corporate bonds

Dynamic Floating Rate Fund: Invests funds in floating rate debt instruments

Dynamic Gilt Fund: Safeguards the capital by investing in Government Securities

Money Market Fund: The most secure fund of the lot, wherein all the funds are parked in the money market

2. Age-based Strategy: On choosing this option, your investments are allocated in the Classic Opportunities Fund and Dynamic Bond Fund, on the basis of your age and risk appetite. Further, on a monthly basis, the units are rebalanced to maintain the necessary proportions of the identified funds in the Fund Value. Again, when only 12 policy months are left for Policy Maturity, the total funds are transferred to the Money Market Fund to ensure stability of the profits earned and avoidance of capital erosion.
3. Systematic Switching Strategy: This strategy enables you to participate in the volatile equity markets, but in a systematic fashion, by letting you park all or some part of the investment in Money Market Fund, followed by transfer of a pre-defined amount every month into, either the Classic Opportunities Fund or Frontline Equity Fund. This is executed by redeeming the required number of units from Money Market Fund at the applicable unit value, and then, allocating new units in the Classic Opportunities Fund or Frontline Equity Fund at the applicable unit value. The transfer is executed automatically at the beginning of the policy month, including at the time of policy inception.
• Enjoy the perks of Survival Units and watch your corpus grow
• Pay premiums for 5 years and avail life coverage for 10 years, or pay for 10 years and avail protection from 15 to 30 years
• Pick the premium payment frequency which best suits your financial status - yearly, half-yearly, quarterly, or monthly
• Option to receive the maturity benefit either in lump sum at one go or in installments through Settlement Option
• Pay a marginal cost to avail the benefits of enhanced protection through Riders
• Liberty to make partial withdrawals from your fund, (provided 5 policy years have lapsed) to support your emergency requirements, with the minimum withdrawal amount being Rs.10,000
• Facility to switch between fund options to maximize returns
• Liberty to re-direct future premium allocation to change the investment pattern as per your financial goals & needs
• Flexibility to alter your Basic Sum Assured on policy anniversaries, and that too without any change in premium, so as to keep it relevant with the different phases of your life, subject to limits and underwriting
• Provision for increasing your investment whenever you have excess money
• Enjoy income tax benefits on premium payments & benefits received

Benefits:

Survival Units: By staying invested over a long term horizon, you become eligible to receive Survival Units, which are added to your Fund Value after every 5 years, starting from the end of the 10th policy year, provided the policy is in force. These Survival Units are equivalent to 2% of the average Fund Value in the Main Account in the immediately preceding three years.

Maturity Benefit: Under this plan, the Maturity Benefit is computed as

Fund Value including Survival Units + Fund Value in Top-Up Account(s), if any.

At the end of the policy term, you have two options to avail the Maturity Benefit. You can either exercise your option to take the entire Fund Value as a lump sum, or you can choose the Settlement Option, whereby the maturity proceeds are given out in pre-selected periodic installments (yearly, half-yearly and quarterly only). The policyholder has a further option to select between taking the entire proceeds as equated periodic installments, or taking 50% of the proceeds as a lump sum, with the remaining 50% as periodic installments.

Death Benefit: In the unfortunate event of your death during the policy term, your nominee is entitled to receive the Death benefit, which is computed as the highest of:

• Basic Sum Assured less applicable partial withdrawal from Main Account (if any)
• 105% of the Premiums paid till the time of death
• Fund Value in the Main Account

Plus, For Top-Up Premiums paid, the highest of

• Top-Up Sum Assured
• 105% of the Premiums paid till the time of death
• Fund Value in the Top-Up Account, if any

Eligibility:

• Kotak Accidental Death Benefit Rider (Linked): This Rider entitles your nominee to receive an additional death benefit, over and above the benefit available under the base plan, in case of your unfortunate demise due to an accident.
• Kotak Permanent Disability Benefit Rider (Linked): In the event of Total & Permanent disability of the life insured occurring as a result of an accident, the Rider Sum Assured is payable to the life insured, and the policy continues as is.

Kotak Single Invest Advantage

Features:

• A Single Premium Unit Linked Life Insurance Plan
• Provision of making only a one-time payment
• Enjoy Loyalty Additions for being invested in the policy for a long period of time
• Option to choose from 3 Investment Strategies as per your investment appetite, risk-taking capacity, and financial goals - Self Managed, Age-based, & Systematic Switching
1. Self Managed Strategy : Manage and control your funds on your own. Choose to park your investments in the Aggressive funds (Classic Opportunities Fund, Frontline Equity Fund), Moderate funds, (Balanced Fund), Conservative funds (Dynamic Bond Fund, Dynamic Floating Rate Fund, Dynamic Gilt Fund), or Secure Funds (Money Market Fund)
2. Age-based Strategy : Based on your age and risk appetite, the funds are initially invested in the Classic Opportunities Fund and Dynamic Bond Fund, followed by monthly rebalancing of the units. Just 12 months before Policy Maturity, the total funds are transferred to the Money Market Fund to ensure that the volatility in returns flattens out.
3. Systematic Switching Strategy : Initially, the funds are invested in the Money Market Fund, followed by transfer of a pre-defined amount every month into the aggressive funds, either the Classic Opportunities Fund or Frontline Equity Fund.
• Liberty to move investments from one fund to another
• Facility of making 12 free switches between funds under Self-Managed Strategy
• Provision of switching between Self-Managed Strategy and Age Based Strategy
• Liberty to withdraw money after 6th policy year to meet interim emergencies, subject to a minimum withdrawal of Rs.5000, and provided premium of five years have been paid in full
• Enjoy income tax benefits on premium payments & proceeds

Benefits:

• Loyalty Additions: When you stay invested for a long time, you get entitled to receive loyalty additions every 5 years, starting from the end of the 10th policy year, subject to the policy being active. These Loyalty Additions are expressed as a percentage of the average Fund Value in the immediately preceding three years.
• Death Benefit: In case of death of the Life Insured during the policy term, the nominee receives the Death Benefit in a lump sum, which is computed as the highest of the following:
1. Basic Sum Assured less partial withdrawals, if any
2. Fund Value in Main Account including Loyalty Additions, if any
3. 105% of the premiums paid up to the time of death
• Maturity Benefit: Upon survival at policy maturity, the insured is entitled to receive the Fund Value including Loyalty Additions. He/she may take the Maturity proceeds either in lump sum or as per the Settlement Option, which provides the flexibility of taking the maturity proceeds in the form of pre-selected periodic instalments (yearly, half-yearly and quarterly only) over a period of five years. The policyholder may choose any of the two Settlement Options:
1. 50% of the maturity proceeds as a lump sum and remaining 50% as periodic instalments
2. The entire maturity proceeds as equated periodic instalments

Eligibility:

Kotak Ace Investment

Features:

• A Unit-Linked Life Insurance Plan
• Make your choice between 3 investment strategies –
1. Self-Managed Strategy - For those who wish to directly manage their funds
2. Age-based Strategy – For those who do not have the time or expertise to manage funds and would want the company to control the investments based on the policyholder’s age & risk bearing capacity
3. Systematic Switching Strategy - For those who wish to park their funds in equity, but in a systematic manner, so that their investments are safeguarded from market volatilities
• Pay premiums for 5 years and avail protection for your family for 10 years
• A wide variety of policy terms & premium payment terms to choose from - Pay premiums for 10 years and get coverage for 15, 20, 25, or 30 years
• Opt for Riders by paying a nominal cost and increase your life coverage manifold
• In times of distress, make partial withdrawals from your fund, subject to a minimum amount of Rs. 10,000 and completion of 5 policy years
• Choose to pay premiums yearly, half-yearly, quarterly or monthly, as per your convenience & financial commitments
• Excess funds available? Invest them in the policy through Top-Up Premiums and increase your coverage
• Liberty to increase / decrease your Basic Sum Assured without paying any extra penny
• Provision for switching between fund options to yield maximum gains
• Option for changing the future premium allocation of funds as per your financial needs & goals
• Option to discontinue the policy in the eventuality of any unforeseen financial condition, subject to charges if discontinued before 5 years
• Enjoy income tax benefits as per applicable laws

Benefits:

Maturity Benefit: At the time of maturity, you become eligible to receive the full Fund Value (including Fund Value in Top-Up Account, if 4 any). You may take this amount as a lump sum in one go. Alternatively, you may choose any one of the two settlement options:

1. Take 50% of the maturity proceeds as a lump sum and balance 50% in periodic installments over a maximum period of the next 5 years
2.  Take the entire maturity proceeds as equated periodic installments over a maximum period of the next 5 years

Death Benefit: In the event of death of the life assured during the policy term, the family would receive a Death Benefit, which is calculated as the highest of:

1. Basic Sum Assured less applicable partial withdrawal amount from Main Account (if any)
2. Fund Value in Main Account
3. 105% of the Premiums paid up to the date of death

Plus, In respect of each Top-Up Premium paid (if any), highest of:

1. Top-Up Sum Assured
2. Fund Value of Top-Up Account
3. 105% of the Top-Up Premium paid

Eligibility:

Riders :

• Kotak Accidental Death Benefit Rider (Linked)
• Kotak Permanent Disability Benefit Rider (Linked)

Kotak Wealth Insurance

Features:

• A Unit-Linked Life Insurance Plan offering triple protection
• Avail a comprehensive triple protection, which entitles your nominee to receive 100% of the Basic Sum Assured plus the Fund Value plus a Lump sum Benefit, in the unfortunate event of your demise during the policy term.
•  A range of 7 fund options for different risk appetites and investment objectives:
  

  Classic Opportunities Fund: An aggressive fund, which invests primarily in equities
  Frontline Equity Fund: Another aggressive fund, which parks 60%-100% of the money in equities and 0-40% in debt & money market
  Balanced Fund: A moderate fund, which aims to maintain a balance by investing in equities as well as debts
  Dynamic Bond Fund: A conservative fund, which offers high fixed returns
  Dynamic Floating Rate Fund: A conservative fund, which invests in floating rate debt instruments
  Dynamic Gilt Fund: Conservative in nature, this fund only invests in Government Securities
  Money Market Fund: A secure fund, which parks all the investments in the money market

• Choose between regular or limited premium payment options
• Select a policy term of 10, 15, 20, 25, or 30 years
• Enjoy a high level of flexibility 5th policy year onwards in terms of :
1. Making partial withdrawals whenever you are in need of funds, subject to a minimum amount of Rs.10,000
2. Discontinue the policy without paying any charges
• Provision of paying Top-Up Premiums so that you can increase your coverage whenever you have excess funds   
• Flexibility to switch between funds so that you can reap the maximum gains
• Liberty to re-direct future premiums if you feel it’s time to change your investment pattern   
• Enhance or Reduce your Basic Sum Assured without any change in premium
• Enjoy income tax benefits on premium payments & benefits received

Benefits:

Maturity Benefit: On survival at policy maturity, you can avail the full Fund Value at one go or make a choice between any of the two settlement options. These include taking the entire proceeds in equated installments over a maximum period of 5 years, or withdrawing a part of the proceeds as a lump sum in cash, with the balance by way of periodic installments for up to 5 years after the maturity date.

Death Benefit: In the eventuality of death of the insured, the nominee receives the Death Benefit, depending upon the following 3 situations:
When the Life Insured and Policyholder is the same, the Death Benefit is equivalent to:
100% of the Basic Sum Assured + Fund Value + Lump Sum Benefit (equal to outstanding premiums)
On Death of Life Insured, when Life Insured and Policyholder are different, the Death Benefit is calculated as:
100% of the Basic Sum Assured + Fund Value
On Death of the Policyholder, when Life Insured and Policyholder are different, the Death Benefit is computed as:
Lump Sum Benefit + waiver of future premiums
In this case, the policy continues as is until maturity and the Life Insured is entitled to receive the policy proceeds.
Further, if there have been any Top-ups, the higher of Top-Up Sum Assured or Fund Value in the Top-Up Account will also be paid along with the above mentioned benefits.

Here, the minimum amount of Death Benefit is equal to 105% of total premiums paid (including Top-Up premiums) up to the date of death.

Eligibility:

Kotak Invest Maxima

Features:

• A Unit-Linked Life Insurance Plan with zero premium allocation charge
• No premium allocation charges means maximum investment and maximum returns
• Earn rewards in the form of Survival Units for being loyal to the company
• Make a choice between two portfolio strategies that best suit your investment goals - Systematic Switching Strategy &  Self Managed Strategy
  

  Self Managed Strategy: For those who wish to manage their investments according to their specific investment objectives and risk bearing capacities. They can choose to allocate their funds in 5 different funds - Classic Opportunities Fund, Frontline Equity Fund, Balanced Fund, Dynamic Bond Fund, or Money Market Fund.

  Systematic Switching Strategy: For those who are willing to invest funds in the equity market, but in a systematic fashion. This option can be chosen at the time of taking the policy or on any policy anniversary. Under this strategy, the funds, in full or part thereof, are initially invested in the Money Market, followed by transfer of a pre-defined amount every month into the more aggressive funds, the Classic Opportunities Fund or the Frontline Equity Fund.

• Three premium payment options to choose from: Regular, Limited, & Single Premium
• Avail coverage for as long as you want – 10, 15, 20, 25, or 30 years
• In immediate need of funds? Opt for Partial Withdrawal from your funds, subject to a minimum amount of Rs. 10,000 and completion of 5 policy years  
• Provision for easy Switching between funds as per your investment goals
• Facility of Premium Redirection for changing your investment strategy or pattern
•  Flexibility to demand an Increase or Decrease in Basic Sum Assured at policy anniversaries, without any corresponding change in premiums, so that your coverage matches with your precise requirements
• Provision of enhancing your investment through Top-Up premiums
• Experiencing a financial crunch? You have an option to discontinue the policy after the 4th policy year, without having to pay any discontinuance charges
• Avail income tax benefits on premium payments & proceeds

Benefits:

Survival Units: Get rewarded for pursuing long-term protection and being loyal to the company, by receiving Survival Units in your Main Account, every 5 years, starting from the end of the 10th policy year, provided your policy is in force. These units are expressed as a percentage of the Fund Value and are calculated on the average of the Fund Value on the relevant date and the two preceding year ends. For Annual / Single Premiums ranging between Rs.50,000 to Rs. 74,999, the Survival Units are 1% of the Fund Value, and for premiums over Rs. 75,000, the Survival Units are computed as 2% of the Fund Value.

Maturity Benefit: Upon survival at policy maturity, you are entitled to receive a Maturity Benefit, which is an accumulation of Fund Value in the Main Account including Survival Units, if any, and Fund Value in Top-Up Accounts, if any. You can avail these maturity proceeds in any of the three following manners:

1. Withdraw the entire proceeds as an immediate payout in one go
2. Take only a part of the maturity proceeds as a lump sum, with the balance as pre-selected periodic installments in yearly, half-yearly, or quarterly mode, over a maximum period of five years
3. Take the entire amount in periodic installments over a maximum period of five years

Death Benefit: In the unfortunate event of your demise during the policy term, your nominee is entitled to receive an amount, which is highest of:

1. Basic Sum Assured
2. Fund Value in Main Account including Survival Units, if any
3. 105% of the premium(s) paid up to the time of death

Plus, the highest of

1. Top-Up Sum Assured
2. Fund Value of Top-Up Account
3. 105% of the Top-Up Premium with respect to each Top-Up Premium paid (if any)

Eligibility: