Kotak Life ULIP Plans

Kotak Mahindra Life Insurance Company Limited is a joint venture undertaken by Kotak Mahindra Bank Ltd., affiliates and Old Mutual. It is one of India’s leading financial service providers which offers a host of products specifically designed and customized to meet the individual needs of all its customers. The company offers various insurance plans.

A unit linked plan with multiple investment strategies. The benefits and features of this unit linked insurance plan are as follows:

What are ULIPs?

Unit Linked Insurance Plans (ULIPs) are insurance plans which combine the benefit of insurance coverage along with capital market linked returns. It allows you to invest and provides an insurance cover as well. In a ULIP, the premium amounts are invested in various funds and the policyholder gets benefits as per the functioning of the markets. There are various funds available in ULIPs and depending upon the amount of risk you want to take, your money is invested. There is a risk factor associated with every ULIP and this is where it differs from a regular insurance plan. The sum assured is not fixed. It depends greatly upon how the markets function.

What are the risks involved in a ULIP?

The biggest risk in a ULIP arises from the fact that your money is invested in the financial markets. So while a part of your money is safely invested in an insurance fund and your family is assured of a fixed death benefit, the remaining of the money is invested in the volatile market. If the market functions well, you earn a high return but if the markets fail, you suffer heavily as well.

What are the different funds available in a ULIP?

There are four different funds available in a ULIP and you can choose any one, depending upon your risk appetite. The funds are:

1. Equity Funds – An equity fund is a fund where the money is invested in stocks of companies. The risk factor is the highest in this type of a fund. 
2. Income, Fixed Interest and Bond Funds – The income, fixed interest and bond funds are funds where the insurance premium is invested in corporate bonds and in fixed income components like government securities, etc. The risk is said to be medium here. 
3. Cash Funds – In cash funds, the money is directly invested in cash, deposits in banks and other money market instruments. The risk is lowest in this kind of a ULIP.
4. Balance Funds – In a balance fund, the equity investment is combined with instruments of fixed interest. The balanced funds are of medium risk. It is a balanced ULIP with 60% investment in equity and 40% investment in the debt market.

Types of Kotak Life ULIP Plans

Kotak Life Insurance Company has various types of Unit Linked Insurance Plans to customers to meet their needs for capital appreciation and insurance protection. Let us have a detailed look at the offered plans and their respective features and benefits

• Kotak Single Invest Plus plan
• Kotak Platinum
• Kotak Single Invest Advantage Plan
• Kotak Ace Investment
• Kotak Wealth Insurance Plan
• Kotak Invest Maxima

Kotak Single Invest Plus plan

A unit linked plan with a single pay option which provides wealth maximization and insurance protection. Other features of the plan are as follows:

• Premium is paid once in one lump sum under the Single Pay option of premium payment.
• The premiums paid net of applicable charges can be invested in a choice of five funds available with the company at the discretion of the policyholder. The funds are Classic Opportunities Fund, Frontline Equity Fund, Dynamic Bond Fund, Dynamic Gilt Fund and Money Market Fund
• The plan provides a joint life cover wherein the death benefit is payable in the event of death of any of the life
• Loyalty Additions are added to the fund value at the end of the 10^th and 15^th policy year @3.60% or 4% of the fund value depending on the amount pf premium paid
• In case of death of any of the two lives, 1.25 times the single premium is paid as the Sum Assured on death and the plan continues till the second life is alive. On consequent death of the second life, higher of 10 times the Single Premium or the available fund value including any loyalty additions or 105% of all premiums paid till death is payable. If both lives die simultaneously, the Sum Assured paid on first death, i.e. 125% of the Single Premium plus higher of 10 times the Single Premium or the available fund value including any loyalty additions or 105% of all premiums paid till death is payable.
• On maturity, the available Fund Value along with the loyalty additions is paid to the policyholder and he can take the lump sum benefit or use the Settlement option to take it in instalments.
• Partial withdrawals are allowed after 5 completed policy years
• The premiums paid are tax-free under Section 80C while the claims received are tax-free under Section 10(10D)

Eligibility Details

Kotak Platinum

A unit linked plan with multiple investment strategies. The features and benefits of the plan are as follows:

• The premiums under the plan can either be paid for the entire tenure of the plan or for a limited tenure.
• The premium paid net of charges can be invested in a choice of 3 investment strategies.
• Under the first strategy called the Self-Managed Strategy, the policyholder has the choice to invest his premiums in any of the available seven funds namely Classic Opportunities Fund, Frontline Equity Fund, Balanced Fund, Dynamic Bond Fund, Dynamic Floating Rate Fund, Dynamic Gilt Fund and Money Market Fund
• Under the second Age Based Strategy, there are three risk profiles of Aggressive, Moderate and Conservative and as chosen, the funds are invested in two funds namely Classic Opportunities Fund and Dynamic Bond Fund in a ratio depending on the age of the policyholder. At older ages, the ratio tends to lean more towards the Bond Fund than Equity Fund for protected returns. As the plan approaches maturity, the fund from the two funds is slowly transferred to the Money Market Fund for protection against market volatility
• Under the third Systematic Switching Strategy, the net premium is initially invested in Money Market Fund and then gradually transferred to the equity oriented funds. As the plan approaches maturity, the fund from the two funds is slowly transferred to the Money Market Fund for protection against market volatility
• Survival units are added to the fund value after 10 policy years and thereafter every 5 years @ 2% of the average fund value in the last 3 years
• Kotak Accidental Death Benefit Rider (Linked) and Kotak Permanent Disability Benefit Rider (Linked) can be availed for increased protection
• On maturity, the Fund Value is payable including accrued survival units which can be availed in lump sum or taken in instalments over a period of 5 years through the Settlement Option feature
• In case of death of the insured during the plan tenure, the death benefit is higher of the basic Sum Assured including top-up Sum Assured or the Fund Value including top-up fund value or 105% of all premiums paid till the date of death
• Top-ups can be done to increase the Sum Assured and the Fund Value
• Partial withdrawals can be made after 5 completed policy years
• 12 free switches are available annually and also is the feature of premium redirection to redirect future premiums to a new fund than the actual chosen one

Eligibility Details

Kotak Single Invest Advantage Plan

A unit linked plan with a single pay option which provides wealth maximization and insurance protection. The features and benefits of the plan are as follows:

• Premium is paid once at the starting of the plan in one lump sum under the Single Pay option of premium payment.
• The premium paid net of charges can be invested in a choice of 3 investment strategies.
• Under the first strategy called the Self-Managed Strategy, the policyholder has the choice to invest his premiums in any of the available five funds namely Classic Opportunities Fund, Frontline Equity Fund, Dynamic Bond Fund, Dynamic Gilt Fund and Money Market Fund
• Under the second Age Based Strategy, there are three risk profiles of Aggressive, Moderate and Conservative and as chosen, the funds are invested in two funds namely Classic Opportunities Fund and Dynamic Bond Fund in a ratio depending on the age of the policyholder. At older ages, the ratio tends to lean more towards the Bond Fund than Equity Fund for protected returns. As the plan approaches maturity, the fund from the two funds is slowly transferred to the Money Market Fund for protection against market volatility
• Under the third Systematic Switching Strategy, the net premium is initially invested in Money Market Fund and then gradually transferred to the equity oriented funds. As the plan approaches maturity, the fund from the two funds is slowly transferred to the Money Market Fund for protection against market volatility
• Loyalty Additions are added to the fund value at the end of the 10^th and 15^th policy year @4% or 5% or 6% of the fund value depending on the amount pf premium paid and the paln tenure
• On maturity, the Fund Value is payable including accrued loyalty additions which can be availed in lump sum or taken in instalments over a period of 5 years through the Settlement Option feature
• In case of death of the insured during the plan tenure, the death benefit is higher of the basic Sum Assured net of partial withdrawals or the Fund Value including loyalty additions or 105% of all premiums paid till the date of death
• Partial withdrawals can be made after 5 completed policy years
• 12 free switches are available annually

Eligibility Details

Kotak Ace Investment

A unit linked Insurance plan with multiple investment strategies. The features and benefits of the plan are as follows:

• The premiums under the plan are payable for a limited tenure or for the entire duration of the plan
• The premium paid net of charges can be invested in a choice of 3 investment strategies.
• Under the first strategy called the Self-Managed Strategy, the policyholder has the choice to invest his premiums in any of the available seven funds namely Classic Opportunities Fund, Frontline Equity Fund, Balanced Fund, Dynamic Bond Fund, Dynamic Floating Rate Fund, Dynamic Gilt Fund and Money Market Fund
• Under the second Age Based Strategy, there are three risk profiles of Aggressive, Moderate and Conservative and as chosen, the funds are invested in two funds namely Classic Opportunities Fund and Dynamic Bond Fund in a ratio depending on the age of the policyholder. At older ages, the ratio tends to lean more towards the Bond Fund than Equity Fund for protected returns. As the plan approaches maturity, the fund from the two funds is slowly transferred to the Money Market Fund for protection against market volatility
• Under the third Systematic Switching Strategy, the net premium is initially invested in Money Market Fund and then gradually transferred to the equity oriented funds. As the plan approaches maturity, the fund from the two funds is slowly transferred to the Money Market Fund for protection against market volatility
• On maturity, the Fund Value is payable including top-up fund value which can be availed in lump sum or taken in instalments over a period of 5 years through the Settlement Option feature
• In case of death of the insured during the plan tenure, the death benefit is higher of the basic Sum Assured including top-up Sum Assured net of partial withdrawals or the Fund Value including top-up fund value or 105% of all premiums paid till the date of death
• Top-ups can be done to increase the Sum Assured and the Fund Value
• Partial withdrawals can be made after 5 completed policy years
• Kotak Accidental Death Benefit Rider (Linked) and Kotak Permanent Disability Benefit Rider (Linked) can be availed for increased protection
• 12 free switches are available annually and also is the feature of premium redirection to redirect future premiums to a new fund than the actual chosen one

Eligibility Details

Kotak Wealth Insurance Plan

A unit linked plan with the following features and benefits:

• Premiums under the plan are payable for a limited tenure or for the entire duration of the plan
• Premiums paid net of charges can be invested in a choice of seven funds namely Classic Opportunities Fund, Frontline Equity Fund, Balanced Fund, Dynamic Bond Fund, Dynamic Floating Rate Fund, Dynamic Gilt Fund and Money Market Fund
• On maturity, the Fund Value is payable including top-up fund value which can be availed in lump sum or taken in instalments over a period of 5 years through the Settlement Option feature
• In case of death, the Sum Assured plus the Fund Value plus a lump sum benefit equal to the aggregate outstanding premiums are paid
• Top-ups can be done to increase the Sum Assured and the Fund Value
• Partial withdrawals can be made after 5 completed policy years
• 12 free switches are available annually and also is the feature of premium redirection to redirect future premiums to a new fund than the actual chosen one

Eligibility Details

Kotak Invest Maxima

A unit linked plan with the following features:

• Premiums paid net of charges can be invested in a choice of 2 investment strategies.
• Under the first strategy called the Self-Managed Strategy, the policyholder has the choice to invest his premiums in any of the available seven funds namely Classic Opportunities Fund, Frontline Equity Fund, Balanced Fund, Dynamic Bond Fund, and Money Market Fund
• Under the third Systematic Switching Strategy, the net premium is initially invested in Money Market Fund and then gradually transferred to the equity oriented funds. As the plan approaches maturity, the fund from the two funds is slowly transferred to the Money Market Fund for protection against market volatility
• Survival units are added from 10^th year and every 5 years @1% or 2% of the fund value
• On maturity, the Fund Value is payable including top-up fund value which can be availed in lump sum or taken in instalments over a period of 5 years through the Settlement Option feature
• On death, higher of the basic Sum Assured including top-up Sum Assured net of partial withdrawals or the Fund Value including top-up fund value or 105% of all premiums paid till the date of death

Eligibility Details

Applying for a Unit Linked Plan from the company:

Online

The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued

Intermediaries

Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

Applying For ULIPs through PolicyBazaar

1. On the PolicyBazaar homepage, click on ULIPs under the Personal tab.
2. Click New Quotes to compare and choose from top insurance providers.
3. Fill your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. On the basis of your payout amount, you will get an estimate of your premium. Next click Continue.
4. Fill in your name, email address, city, country code, and mobile number. Click Continue.
5. You will be taken to the Life Insurance quotes page where you will see life insurance quotes of more than 10 insurers. Next, choose the plan as per payment schedule – One Time Payout and Monthly Payout Plans.
6. After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.
7. You will see a pop-up on the screen which will give you an overview of the chosen plan like premium, plan features, exclusions, additional riders, etc. Click Proceed.
8. This will take you to the insurer’s website. You will have to fill in the necessary details to buy the plan.

Kotak Life ULIP Plans - FAQ

1. How to pay a premium? What are the modes of payment available?

Kotak Mahindra Life Insurance Company Limited offers 12 modes of premium payment namely:

• Cheque payment at the branch
• Online Payment
• Payment at the Kotak bank ATM drop boxes
• NEFT
• ECS
• Standing Instructions
• Direct Debit
• IMPS
• Payment thorough bill desk
• Electronic bill payment
• Postal money order
• Bank guarantee
  
  For the online payment mode, the policyholder can pay via;

• Credit Card,
• Debit Card
• Net banking

2. How can I check policy status for Kotak Life ULIP plans?

If you are a registered user, simply log into the e-Portal with your policy details to check the policy status.

3. What is the policy renewal process for Kotak Life ULIP plans?

If you are a registered user, you can pay online in 3 easy step

Step 1: Logging into the e-Portal with your policy details to check the policy status.

Step 2: Select the policy and payment option- Net Banking. Debit/Credit Card

Step 3: Pay via the secured gateway and print/save the recipt of payment.

In the offline mode, you deposit cash/cheque at the nearest branch.

4. What is the company’s process to settle claim for Kotak Life ULIP plans?

The nominee can visit the branch personally with the policy document and accidental/death certificate. The nominee must fill a claim intimation form and then the company will provide a reference number to him. Usually within 30 days the accidental/death claim without investigation cases is cleared.

5. What is the policy cancellation process for Kotak Life ULIP plans?

Submit your policy documents along with duly filled surrender form at the service desk in any of the branches. Upon successful proccedings, the refund will be credited directly into your bank account and the policy stands cancelled. The comoany claims to setlle it within 7 working days.