India's 1st IRDAI Approved Insurance Web Aggregator

Kotak Ace Investment Plan

  •  views
  •  views

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 of Kotak Ace Investment Insurance Plan

  • It is a Unit Linked Insurance Plan without Bonus
  • There is Regular and Limited pay option in this plan
  • There are 8 funds for investment purpose
  • On survival till the end of the Policy Tenure, the Fund Value is paid to the policyholder as Maturity Benefit
  • In case of death of the Life Insured within the Policy Tenure, higher of the Sum Assured or the Fund Value is paid to the nominee as Death Benefit
  • There are additional riders in this plan

COMPARE THIS PLAN WITH OTHER ULIP PLANS

 

Benefits you get from Kotak Ace Investment Insurance Policy

Death Benefit – 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.
 
Maturity Benefit – When the policy matures, the Fund Value is paid to the policyholder as Maturity Benefit.
 
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,50,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions
 
 

Eligibility conditions & other restrictions in Kotak Ace Investment Policy        

 
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
PT – Premium Term; AP – Annualised Premium
 
 

Sample Illustration of Kotak Ace Investment Unit Linked Insurance Plan

The below illustration is for a healthy Male (non-tobacco user) of 35 years opting for an Annual Premium = Rs. 50,000 and Sum Assured of Rs 5,00,000 for Policy Tenure of 20 years

Kotak Ace Investment Plan Sample Benefit Illustration

 

Additional Features and Benefits of Kotak Ace Investment Unit Linked Insurance Plan

Riders – There are Additional Riders in this plan:
  • 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
 
Investment Fund Options - In this plan, there are 8 Funds available for Investment purpose:
  1. Classic Opportunities Fund
  2. Frontline Equity Fund
  3. Balanced Fund
  4. Dynamic Floor Fund II
  5. Dynamic Bond Fund
  6. Dynamic Floating Rate Fund
  7. Dynamic Gilt Fund
  8. Money Market Fund
 
Top-up – Additional Premium is payable Minimum Top Up is Rs 10,000.
The Top Up Sum Assured also increases with each Top Up. If the age at the time of Top-Up is less than 45 years, then the Sum Assured increases by 1.25 X Top-Up Premium and if the age at the time of Top-Up is 45 years and above, then the Sum Assured increases by 1.10 X Top-Up Premium.
 
Switching – Switching is an option provided to shift between fund options. The first 2 switches in a policy year are free. For every additional switch thereafter, Rs 500 will be charged.
 
Partial Withdrawal - 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.
 
 

Charges in Kotak Ace Investment Unit Linked Insurance Plan

Premium Allocation Charge – This charge is deducted from the Premium Paid by you

 

Policy Year
All Premium
1st and 2nd
6% of Premium
3rd to 5th
4% of Premium
6th onwards
2% of Premium
 
 
Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.

 

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
 
 
Fund Management Charge and Guarantee Management Charge – This charge is deducted by adjusting the NAV of the units on a daily basis.

 

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
 
 
Surrender Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.

 

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
 
 
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
 
Service Tax would be applicable on the charges depending on the applicable rates.
 
 

What happens if?

You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate according to the norms of the IRDA of minimum 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated Fund Value will be payable to the nominee.
The policy can be revived as well but within the Notice Period.
 
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.
 
You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the Fund Value net of any discontinuance charge, if at least 5 years’ premiums have not been paid, will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate according to the norms of the IRDA of minimum 3.5% p.a. and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
 
If the policyholder surrenders the policy after completion of 5 policy years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
 
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.



 
Similar Withdrawn ULIP Plans from Kotak Life
Compare Ulip Plans

Leave a Comment

Unit Linked Plan Calculator