Kotak Ace Investment Plan
Kotak Ace Investment Plan
Kotak Ace Investment Unit Linked Insurance Plan is a Unit Linked Insurance Plan or ULIP. Thus, it is a Non-Traditional Insurance Plan without Bonus facility.
How it works – In this plan, premium needs to be paid for 5 years for Policy Term of 10 years and for 10 years for Policy Term of 15, 20, 25 and 30 years under Limited Payment Option and equal to Policy Term under Regular Payment Option.
There are 8 funds for investment purpose and host of additional riders for enhanced coverage.
On survival till the end of the Policy Tenure, the Fund Value is paid at the end of the policy tenure as Maturity Benefit and the policy terminates.
However, if the Life Insured dies within the policy tenure, higher of the Sum Assured or the Fund Value is paid to the nominee as Death Benefit.
Key Features
Benefits
In case of death of the Life Insured within the Policy Tenure, the nominee gets the higher of the Sum Assured and the Fund Value.
When the policy matures, the Fund Value is paid to the policyholder as Maturity Benefit.
- Kotak Term Benefit (KTB)/ Kotak Preferred Term Benefit (KPTB) - Lump sum Benefit paid on death
- Kotak Critical Illness Benefit (CIB): Portion of Sum Assured (75% of Sum Assured or Rs 2,000,000 whichever is lower) payable on admission of a claim on a critical illness
- Kotak Accidental Death Benefit (ADB) - Lump sum Benefit paid on accidental death
- Kotak Permanent Disability Benefit (PDB) - Installments on admission of a claim on becoming disabled
- Kotak Life Guardian Benefit (LGB) – Premiums waived on death and all future premiums will be paid
- Kotak Accidental Disability Guardian Benefit (ADGB) - Premiums waived on disability and all future premiums will be paid by Kotak Life Insurance and the policy continues
- Classic Opportunities Fund
- Frontline Equity Fund
- Balanced Fund
- Dynamic Floor Fund II
- Dynamic Bond Fund
- Dynamic Floating Rate Fund
- Dynamic Gilt Fund
- Money Market Fund
In this policy, there are Partial Withdrawals options which will be allowed only after completion of 5 policy years. Minimum amount for partial withdrawal is Rs 10,000 subject a minimum balance of 1 year’s Annualized Premium should be maintained in the Fund Value after Partial Withdrawal. For each Partial Withdrawal there will be a charge of Rs 500.
Variants
|
Policy Year
|
All Premium
|
|
1st and 2nd
|
6% of Premium
|
|
3rd to 5th
|
4% of Premium
|
|
6th onwards
|
2% of Premium
|
|
Premium Bands
|
Premium Allocation Charge
|
|
Upto Rs 9,99,999
|
0.1% of the Annualized Premium p.m.
|
|
Rs 10,00,000 and above
|
NIL
|
|
Type
|
Charge
|
|
Classic Opportunities Fund
|
1.35% of the Classic Opportunities Fund Value
|
|
Frontline Equity Fund
|
1.35% of the Frontline Equity Fund Value
|
|
Balanced Fund
|
1.35% of the Balanced Fund Value
|
|
Dynamic Floor Fund II
|
1.35% of the Dynamic Floor Fund II Value
|
|
Dynamic Bond Fund
|
1.35% of the Dynamic Bond Fund Value
|
|
Dynamic Floating Rate Fund
|
1.35% of the Dynamic Floating Rate Fund Value
|
|
Dynamic Gilt Fund
|
1.35% of the Dynamic Gilt Fund Value
|
|
Money Market Fund
|
1.35% of the Money Market Fund Value
|
|
Year of Discontinuation
|
All Premiums
|
|
1st
|
Lowest of 6% of AP or 6% of FV or Rs 6000/-
|
|
2nd
|
Lowest of 4% of AP or 4% of FV or Rs 5000/-
|
|
3rd
|
Lowest of 3% of AP or 3% of FV or Rs 4000/-
|
|
4th
|
Lowest of 2% of AP or 2% of FV or Rs 2000/-
|
|
5th onwards
|
NIL
|
Eligibility
|
|
Minimum
|
Maximum
|
|
Sum Assured (in Rs.)
|
Age<45 yrs, SA= Higher of (10 X AP) or (0.5 X PT X AP)
Age>=45 yrs, SA= Higher of (7 X AP) or (0.25 X PT X AP)
|
25 X AP
|
|
Policy Term (in years)
|
10
|
30
|
|
Premium Payment Term (in years)
|
Regular: Equal PT
Limited: 5 years for PT= 10 and 10 years for PT=15 to 30
|
|
|
Entry Age of Life Insured (in years)
|
0
|
65
|
|
Age at Maturity (in years)
|
18
|
75
|
|
Premium (in Rs.) for Regular Payment
|
Annual – Rs 30,000,
Half-Yearly - Rs 18,000 , Quarterly - Rs 9000
Monthly - Rs 3,000
|
No Limit
|
|
Premium (in Rs.) for Limited Payment
|
Annual- Rs 50,000
Half-Yearly- Rs 30,000
Quarterly- Rs 15,000
Monthly-Rs 5,000
|
No Limit
|
|
Payment modes
|
Annual, Half-yearly, Quarterly and Monthly
|
|
FAQs
What happens if You stop paying the premium before 5 years?What happens if You stop paying the premium after 5 years?If the policy holder stops paying the premium after 5 years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
What happens if You want to surrender the policy?What happens if You want a loan against your policy ?There is loan available under this plan but only after at least of 2 years' premiums have been paid for. The minimum Loan amount is Rs 10,000 and the maximum of 40% of the Fund Value of the policy at that time.
