Kotak Platinum Insurance Plan

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Kotak Platinum – Overview

Kotak Platinum is a unit-linked life insurance plan which helps in maximising wealth. It offers protection as well as long-term savings. It gives a choice of 7 investment funds to cater to the risk appetite of different categories of individuals. The plan offers 3 investment strategies giving complete control over investments. It also allows partial withdrawals after completion of the 5 policy years to address liquidity issues. The plan adds Survival Units every 5 years starting from the end of 10th policy year to further enhance long-term savings. 

Kotak Platinum – Key Features

Unit Linked Insurance Plan: This is a unit-linked investment plan (ULIP) which offers the dual benefit of life insurance and investment. Part of the insurance premium goes towards providing a life cover and the rest is invested in different investment funds with a medium to long-term investment horizon.

Low Charges Help in Wealth Maximisation: The plan has low charges which ensure that major portion of the money is invested in investment funds. The premium allocation in this plan ranges from 95% to 98.5%, meaning that most of the insurance premium goes towards investment, helping maximise returns over the policy term.

7 Fund Options: This plan offers a choice of 7 investment funds which have a risk-return profile ranging from secure to aggressive. These funds invest in different degrees in equities, debt and money market instruments to suit the risk appetite of the policyholder.

  • Classic Opportunities Fund
  • Frontline Equity Fund
  • Balanced Fund
  • Dynamic Bond Fund
  • Dynamic Floating Rate Fund
  • Dynamic Gilt Fund
  • Money Market Fund

3 Investment Strategies: The plan offers the flexibility to choose from 3 investment strategies to build a substantial corpus at the end of the policy term.

  • Self Managed Strategy: This strategy allows self-management of investments
  • Age Based Strategy: This strategy is useful for people who do not have the time and the financial expertise to manage their investments. Allocation is done based on the age and risk appetite of the policyholder. Depending on one’s risk appetite – aggressive, moderate or conservative, funds are allocated between Classic Opportunities Fund and Dynamic Bond Fund. The basic premise of this strategy is that risk taken is inversely proportional to one’s age i.e. it makes sense to take a higher risk when young.
  • Systematic Switching Strategy (SSS): This strategy allows participation in the equity markets in a systematic manner. It invests all or some part of the investments in the Money Market Fund and transfers a pre-defined amount every month into Classic Opportunities Fund or Frontline Equity Fund based on the selection. This is done by redeeming the required number of units from the Money Market Fund at the applicable unit value, and allocating new units in the Classic Opportunities Fund or Frontline Equity Fund at the applicable unit value.

Additional Protection: The plan gives a choice of 2 optional riders which increase the level of protection in the base plan.

  • Kotak Accidental Death Benefit Rider (Linked): If the life insured dies as a result of an accident, this rider pays the Rider Sum Assured in addition to the Death Benefit
  • Kotak Permanent Disability Benefit Rider (Linked): If an accident results in total and permanent disability of the life insured, the Rider Sum Assured is paid and the base policy continues

Partial Withdrawals: The plan allows partial withdrawals of funds after completion of 5 policy years to address financial emergencies 

Kotak Platinum – Benefits

Death Benefit: In the event of the death of the life insured during the tenure of the plan, provided all due premiums have been paid, the Death Benefit is paid to the nominee. 

Death Benefit is higher of the following:

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

The nominee will also receive the higher of the following in respect of each top-up premium paid:

  • Top-Up Sum Assured
  • 105% of the insurance premiums paid till the time of death
  • Fund Value in the Top-Up Account (if any) 

The minimum Death Benefit is at least 105% of the total premiums paid (including top-up premiums, if any) up to the time of death.

Maturity Benefit: Maturity Benefit is paid if the life insured is alive at the end of the policy term (policy maturity). 

Maturity Benefit = Fund Value at the time of maturity inclusive of all Survival Units
                                  [including Fund Value in Top-Up Account(s), if any]

Tax Benefits: Tax benefits can be availed under Section 80C and Section 10(10D) of the Income Tax Act, 1961 

Kotak Platinum – Product Specifications 

 

Minimum

Maximum

Entry Age
(last birthday)

0 years

Regular Pay: 65 years

Limited Pay: 60 years

Maturity Age
(last birthday)

18 years

75 years

Policy Term

10 years 

The minimum policy term for a minor is greater of:

10 years

(18 minus age as on the date of commencement) years

30 years

Basic Sum Assured

Regular/ Limited Pay

Age of Life Insured

Minimum

Maximum

Regular Pay

Less than 45 years

Higher of:

10 times AP

0.5 x Policy Term x AP

25 times AP

Regular Pay

45 years

Higher of:

7 times AP

0.25 x Policy Term x AP

25 times AP

Regular Pay

46-55 years

Higher of:

7 times AP

0.25 x Policy Term x AP

15 times AP

Regular Pay

56-60 years

Higher of:

7 times AP

0.25 x Policy Term x AP

10 times AP

Regular Pay

61 years and above

7 times AP

Limited Pay

Less than 45 years

Higher of:

10 times AP

0.5 x Policy Term x AP

15 times AP

Limited Pay

45 years

Higher of:

7 times AP

0.25 x Policy Term x AP

15 times AP

Limited Pay

46-50 years

Higher of:

7 times AP

0.25 x Policy Term x AP

15 times AP (except for a 5 year PPT where  it is 10 times AP)

Limited Pay

51-60 years

Higher of:

7 times AP

0.25 x Policy Term x AP

10 times AP (except for a 5 year PPT where  it is 7 times AP)

AP refers to one Annualised Premium

Premium Payment Term

Regular Pay: Equal to the policy term

Limited Pay:

5 years for a 10 year policy term
10 years for a policy term of 15 to 30 years

Premium Payment Mode

Yearly, Half-yearly, Quarterly, Monthly

Annual Premium Amount

Yearly: Rs. 99,000

Half-yearly: Rs. 49,500

Quarterly: Rs. 24,750

Monthly: Rs. 8,250

No limit

Top-Up Premium

Rs. 10,000

The total Top-Up premium paid cannot exceed the sum of all the regular

premiums paid at that point of time

Top-Up Sum Assured

Age at the time of top-up less than 45 years (last birthday):
1.25 x Top-Up Premium

Age at the time of top-up equal to or greater than 45 years (last birthday):
1.10 x Top-Up Premium

 

Policy Details

Grace Period: Thirty days is given to the policyholder to pay all due premiums. This timeframe is reduced to 15 days in case of premiums being paid via monthly mode. The policy will acquire a “Discontinued” status if payment is not made within the applicable timeframe.

Policy Termination or Surrender Benefit: If the policy is surrendered before the completion of 5 years, then the insurance cover ceases, and the Fund Value will be transferred to the Discontinued Policy Fund. Proceeds from this will be payable only after the fifth policy anniversary. In case of the death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee. After completing five policy years, if it is surrendered, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policyholder and the policy will terminate immediately. If the policy is not reinstated within the revival period, the policy is terminated. Termination of the policy also occurs on payment of the Maturity benefit or the Death Benefit.

Free Look Period: Policyholders have a limited free look period of 15 days from the date of receiving policy documents to review the policy. If the policyholder does not wish to continue with the policy, then he or she can cancel the policy. The customer will receive the Fund Value plus the unallocated premium minus a proportionate premium for the risk borne by the company, including as any extra expenses, such as towards a medical examination or stamp duty charges.

Inclusions

  • A Top-up premium is permitted any time during the policy term on the condition that all premiums have been paid. The minimum Top-up premium amount is Rs. 10000.
  • The policyholder may switch between the seven unit-linked funds at any point of time during the policy term.
  • The policyholder may increase or decrease the Base Sum Assured as per their changing life coverage.
  • Policyholders may opt to change the allocation of future premiums with the Premium Redirection facility.
  • The policyholder can choose to receive the maturity benefit as a lump-sum amount or through pre-selected installments via yearly, half-yearly or quarterly modes for a period of up to five years after the maturity date. The policyholder may also receive the maturity benefit as a part lump-sum amount and the rest via installments.

Additional Features or Riders

  • The revival of a lapsed or discontinued policy is possible if the policyholder submits a request for reinstatement within a timeframe of two years from the date of the first unpaid premium and pays all due premiums. The policy can also be revived before the end of the Notice Period.
  • Various charges apply to this policy. They are as follows:
  1. Premium Allocation Charge, which is deducted from the Premium paid by the customer. The balance is invested in the investments chosen by the policyholder
  2. Policy Administration Charge is deducted at the start of each month.
  3. Fund Management Charges are deducted daily while calculating the NAV of the funds.
  4. At the beginning of each month, Mortality Charges are deducted by cancellation of units from the fund value.
  5. Switching Charge – There is a limit of twelve free switches allowed in a single policy year. Subsequently each switch is charged at Rs. 500 per switch.
  6. Partial Withdrawal Charge is Rs.500 per withdrawal.
  7. Miscellaneous Charges – for replacement of policy documents and alteration, Rs. 500 is charged, while Rs. 100 is charged for premium redirection.
  8. A Discountenance Charge is levied on policies that are discontinued before the end of the lock-in period of the first five years.

Exclusions

  • The term insurance cover is void if the person insured, whether sane or insane at the time, commits suicide within one year from the start of the policy cover. The company will refund the Fund Value as on the date of death. If the person insured commits suicide within one year of policy reinstatement when the revival has been done within six months from the date of discontinuance the Death Benefit is paid to the nominee. . If the person insured commits suicide within one year of policy reinstatement when the revival has been done after six months from the date of discontinuance, the Fund Value is paid to the nominee

Documents Required

The policyholder has to fill up an ‘Application form ’with identity proof, bank account proof, address proof and a recent photograph. Select cases may require income proof and medical examination.

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