Kotak Life ULIP Plans

What are ULIP Plans?

Unit Linked Insurance Plans (ULIPs) blend insurance coverage with capital market-linked returns. They offer the dual advantage of investment and insurance. In ULIPs, premiums are invested in diverse funds, and policyholders receive returns based on market performance. With multiple fund options, your money is allocated based on your risk preference. ULIPs involve a risk element, distinguishing them from standard insurance plans. The sum assured is variable, influenced by market dynamics rather than a fixed amount, adding a market-driven dimension to the policy.

Types of Kotak Life ULIP Plans

1. Kotak Life E-Invest

   Kotak Life E-Invest is a comprehensive Unit Linked Insurance Plan (ULIP) designed to cater to your financial needs, like protection, investment, child's financial security, and retirement planning. It offers a unique combination of life cover, investment flexibility, and tax benefits.

   Here are some of its key features:

   • 100% Investment of Premiums: Unlike other ULIPs, Kotak Life E-Invest allocates 100% of your premiums directly to the chosen investment funds. This means no part of your premium goes towards charges, maximising your investment potential.

   • Enhanced Fund Value: Starting from the 6th policy year, the plan adds yearly bonuses to your fund value until maturity or death (depending on the plan option). These bonuses further boost your returns.

   • Mortality Charges Return: To reward your commitment, a portion of the life cover charges deducted returns to your fund value based on your policy term and if you survive till maturity. This 25% to 200% refund incentivises long-term investment.

   • Multiple Plan Options: E-Invest caters to diverse goals with 4 plan options:

     • Maximiser: Focuses on maximising fund value through aggressive investments.

     • Rising Star: Provides triple protection with lump sum payout, monthly income, and policy continuation for your child on your death.

     • Retire Rich: Offers life cover till 99 years, ensuring financial security throughout your retirement.

     • Income: Ensures regular income after retirement through flexible withdrawal options, boosted by an additional 0.5% income booster.

   • Choose from two investment strategies based on your risk appetite:

     • Self-Managed Strategy: Select individual funds to actively manage your portfolio.

     • Age-Based Strategy: Opt for age-appropriate fund allocation for a balanced approach.

   • Additional Benefits: Tax benefits under Section 80C and 10(10D) of the Income Tax Act.

   • Eligibility:

   Parameter	Plan Option	Eligibility Criteria
   Entry Age		Minimum	Maximum
   	Maximizer	3 years	60 years
   	Rising Star	18 years	50 years
   	Retire Rich	3 years	50 years
   Maturity Age	Maximizer	18 years	75 years
   	Rising Star	28 years	60 years
   	Retire Rich	Fixed at 99 years age of Life Insured

   

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2. Kotak Assured Savings Plan

   The Kotak Assured Savings Plan is a non-participating investment plan offered by Kotak Mahindra Life Insurance Limited. It combines features of both life insurance and savings, aiming to provide financial security and wealth accumulation over the long term. 

   Key features of this plan:

   • Guaranteed Maturity Benefit: This includes three components:

   • Basic Sum Assured: A fixed amount determined by your chosen premium, policy term, premium payment term, and age.

   • Guaranteed Loyalty Addition: A bonus paid at maturity if you stick with the policy for the entire term.

   • Increasing Life Cover: The Basic Death Benefit, payable if you die during the policy term, is the higher of:

     • 11 times (for ages below 45) or 7 times (for ages 45 and above) your annual premium.

     • The Guaranteed Minimum Death Benefit a percentage of the Basic Sum Assured based on the policy term.

     • 105% of all premiums paid.

   • Guaranteed Additions: Provide growth on your savings, enhancing the final payout.

   • Tax Benefits: Premiums paid qualify for tax deductions under Section 80C of the Income Tax Act, 1961.

   • Eligibility:

   Parameter	Minimum Age	Maximum Age
   Entry Age (as of last birthday)	3 years	60 years
   Maximum Maturity Age(as on last birthday)	18 years	For 10 Policy Term: 70 years For Other Policy Term: 75 years

   

3. Kotak Guaranteed Savings Plan

   The Kotak Guaranteed Savings Plan is a non-linked, non-participating life insurance plan that combines guaranteed savings with limited premium payments and life insurance protection.

   Here are its key features:

   • Limited Premium: You only pay premiums for a fixed period, known as the premium payment term (PPT). This can range from 5 to 10 years, depending on your chosen policy term. After the PPT, you no longer need to make further premium payments.

   • Guaranteed Additions: Once you complete the PPT, the plan starts accruing guaranteed additions every year until the end of the policy term. These additions are a fixed percentage of your annual premium and are guaranteed, regardless of market performance.

   • Guaranteed Loyalty Addition: At the end of the policy term, you receive a lump sum loyalty bonus as a reward for staying invested with Kotak Life. The amount of the bonus depends on your chosen premium payment term and policy term.

   • Enhanced Protection: You can opt for additional riders to enhance the protection provided by the plan. These riders may cover critical illness, accidental death, or disability.

   • Eligibility:

   Entry Age as of last birthday	Minimum Age	Maximum Age
   	3 years	60 years

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Conclusion

Kotak Life ULIPs offer a compelling option for individuals seeking a blend of investment and protection. With careful planning and a clear understanding of the risks involved, ULIPs can be a valuable tool for achieving your financial goals.