Kotak Wealth Insurance Plan

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Kotak Wealth Insurance – Overview

Kotak Wealth Insurance is a type II unit-linked life insurance plan. It offers the twin benefits of protection and wealth accumulation. This plan secures the future of the family with a comprehensive life cover and helps build a corpus by regular investment in funds of choice. The highlight of this plan is that it provides 'triple protection' on the death of the life insured which helps take care of all eventualities. 

Kotak Wealth Insurance – Key Features

  • Twin Benefits: The plan provides dual benefits of protection through a life insurance cover and wealth generation through periodic investment in funds of choice. This plan is able to strike the right balance between protection and wealth accumulation.
  • Comprehensive Triple Protection:The plan secures the well-being of the family by providing triple protection in the event of the death of the life insured (where the policyholder and the life insured are the same). In such circumstances, it gives the following to the nominee as a means to provide immediate financial relief and to reduce the financial burden on the loved ones in the absence of the primary bread earner:
    • 100% of the Basic Sum Assured
    • Fund Value in the main account
    • Lump Sum Benefit

The above amount is available immediately to take care of all eventualities in the changed scenario.

  • Wide Choice of Funds:The plan offers a choice of 7 investment funds which help in maximising wealth. Each of these funds invests in equities, debt and money markets in different ratio and has a risk-return profile ranging from secure to aggressive to suit the needs of different kinds of investors.
    • Classic Opportunities Fund
    • Frontline Equity Fund
    • Balanced Fund
    • Dynamic Bond Fund
    • Dynamic Floating Rate Fund
    • Dynamic Gilt Fund
    • Money Market Fund
  • Partial Withdrawals: The plan allows partial withdrawal of funds from 5th policy year onwards to meet any financial requirements or emergencies
  • Top-Up Premiums: The plan also permits increasing the investment contribution by paying top-up premiums when surplus capital is available
  • Change of Basic Sum Assured: The plan allows alteration of the Basic Sum Assured to keep the insurance cover relevant. This is subject to certain limits mentioned in the policy.
  • Convenient Premium Payment Options: The insurance premium can be either paid for the duration of the policy term under the Regular pay option or for a short term under the Limited Pay option. The plan provides the convenience of a limited premium payment term of 5 years for a 10 year policy term. 

Kotak Wealth Insurance – Benefits

  • Death Benefit: In the event of death during the tenure of the policy, the Death Benefit is paid to the nominee. 

In the event of death where the life insured and policyholder is the same person, the Death Benefit comprises of the following 3 components:

    • 100% of the Basic Sum Assured
    • Fund Value
    • Lump Sum Benefit 

In the event of death of the life insured where the life insured and policyholder are different individuals, the Death Benefit comprises of the following 2 components:

    • 100% of the Basic Sum Assured
    • Fund Value 

In the event of death of the policyholder where the life insured and policyholder are different individuals, the Death Benefit is as follows:

    • Lump Sum Benefit

The obligation to pay future premiums ceases and the policy continues till policy maturity. The life insured is entitled to receive the proceeds from the policy. 

The minimum Death Benefit is equal to 105% of the total premiums paid (including Top-Up premium) up to the time of death.

  • Maturity Benefit: The Maturity Benefit paid at the end of the policy term is the full Fund Value
  • Tax Benefits: Tax benefits are available, subject to the conditions specified under Section 80C and Section 10(10D) of the Income Tax Act, 1961 

Kotak Wealth Insurance – Product Specifications 

 

Minimum

Maximum

Entry Age (last birthday)

Life Insured: 0 years
Policyholder: 18 years

Life Insured & Policyholder:
65 years

Maturity Age (last birthday)

18 years

75 years

Policy Term

10, 15, 20, 25 and 30 years

Basic Sum Assured

-If entry age is less than 45 years, higher of:

     10 x Annual Premium
     0.5 x Policy Term x Annual Premium 

-If entry age is 45 years or above, higher of:

     7 x Annual Premium
     0.25 x Policy Term x Annual Premium

25 x Annual Premium

Premium Payment Term

Regular: Equal to the policy term
Limited: 5 years for a 10 year policy term

Premium Payment Mode

Annual

Premium Amount

Regular Premium: Rs. 20,000 p.a.
Limited Premium: Rs. 50,000 p.a.

No limit

Top-Up Premium Amount

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

-If age at the time of payment of Top-Up premium is less than 45 years (last birthday):
         1.25 x Top-Up Premium
-If age at the time of payment of Top-Up premium is 45 years or above (last birthday):
         1.10 x Top-Up Premium

 

Kotak Wealth Insurance – Policy Details 

Nomination: The facility of nomination is available in the plan as per Section 39 of the Insurance Act, 1938 

Assignment: The facility of assignment is available in the plan as per Section 38 of the Insurance Act, 1938

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