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Kotak Capital Multiplier Plan
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This plan has been withdrawn by the insurance company and is no longer available for sale.
Kotak Capital Multiplier Plan
Kotak Capital Multiplier Plan is a Traditional Participating Endowment Plan. Thus, it is a non-linked Insurance Plan with Bonus facility.
How it works – In this plan, there are 2 phases of this plan- the Accumulation Phase and the Withdrawal Phase.
In the Accumulation Phase, the premiums are paid till the end of the Premium Paying Term. The premiums are deposited in the Accumulation Account, after deduction of charges. This fund is managed by the prudent fund managers to provide highest returns. There is also a feature of Lumpsum Injections where additional surplus fund can be paid to create Supplementary Accumulation Account.
The amount from the Supplementary Accumulation Account can be withdrawn for flexibility. There is a Guaranteed Return of 3% on each account- Accumulation Account and Supplementary Accumulation Account. The company may choose to declare more returns if there is an investment surplus. The Bonus declared is also credited to the Accumulation Account.
On completion of the Accumulation Phase, there is a period called Withdrawal Phase, which is 15 years or till age 75 years where you may choose to withdraw the money as and when you require while the remaining can be continued to be invested. In this Withdrawal Phase, the Accumulation Account is merged with the Supplementary Accumulation Account.
On Policy Maturity, i.e. the beginning of the Withdrawal Phase, higher of the Basic Sum Assured or the Accumulation Account can be withdrawn along with the balance in the Supplementary Accumulation Account. The policy would terminate once the entire amount has been withdrawn or would be paid out at the end of the Withdrawal Phase.
In this plan, there is an additional cover of 10% of the Sum Assured and of the Kotak Critical Illness Benefit, if opted for. This cover continues even after the Accumulation Phase, till the end of the Withdrawal Phase.
There are 6 additional riders available in this plan.
Key Features of Kotak Capital Multiplier Insurance Plan
This is a Traditional Endowment Plan with Bonus facility
In this plan, there are 2 phases of this plan- the Accumulation Phase and the Withdrawal Phase
Premiums, net of charges are accumulated in the Accumulation Account
In this plan, Lumpsum Injections where additional surplus fund can be paid to create Supplementary Accumulation Account
There is a minimum guaranteed return of 3% on the accounts
On completion of the Accumulation Account, there is a period of 15 years where the withdrawals can be made as and when the money is required
In this plan, there is an additional cover of 10% of the Sum Assured and of the Kotak Critical Illness Benefit, if opted for
This cover continues even after the Accumulation Phase, till the end of the Withdrawal Phase
There are 6 additional riders available in this plan
After 3 policy years, even if some premiums are not paid the policy continues under Automatic Cover Maintenance facility which ensures that your insurance cover is in force
Early maturity maybe opted for due to medical reasons or otherwise
COMPARE THIS PLAN WITH OTHER ENDOWMENT PLANS
Benefits you get from Kotak Capital Multiplier Policy
Death Benefit – If the Life Insured dies
During the Accumulation Phase: Basic Sum Assured + additional 10% of the Basic Sum Assured is paid as Death Benefit along with balance in the Supplementary Accumulation Account
During the Withdrawal Phase: additional 10% of the Basic Sum Assured is paid as Death Benefit along with balance in the Supplementary Accumulation Account
Maturity Benefit – On maturity, higher of the Basic Sum Assured or the Accumulation Account can be withdrawn along with the balance in the Supplementary Accumulation Account within the entire period of 15 years. Once the amount is 100% withdrawn, the policy terminates.
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C
Eligibility conditions and other restrictions in Kotak Capital Multiplier Plan
Minimum
Maximum
Policy Term (in years)
5
30
Premium Payment Term (in years)
Equal to Policy Term
Entry Age of Life Insured (in years)
8
60
Age at Maturity (in years)
-
65
Regular Premium (in Rs.)
10,000
No Limit
Payment modes
Yearly, Half-Yearly, Quarterly and Monthly
Sample illustration of premium of Kotak Capital Multiplier Insurance Policy
Age of Life Insured = 30, 35 and 40 years respectively
Policy Term = 25 years
Sum Assured= Rs.4,00,000
Additional Features and Benefits of Kotak Capital Multiplier Plan
Riders – There are 6additional riders available with this policy:
Kotak Term/Preferred Term Benefit
Kotak Accidental Death Benefit
Kotak Permanent Disability Benefit
Kotak Critical Illness Benefit
Kotak Life Guardian Benefit
Kotak Accidental Disability Guardian Benefit
What happens if?
You stop paying the premium – The policy will lapse if the premium stops. However, it can be revived within 2 years from the date of first unpaid premium.
If at least 3 years’ premiums have been paid, then the policy can be converted to a Paid Up Policy and continued for a reduced Sum Assured without paying further premiums. There is also a facility of Automatic Cover Maintenance facility where the policy remains in force if at least 3 years’ premiums have been paid.
You want to surrender the policy – If premiums for 3 years have been paid up, then surrender of policy is allowed.
Guaranteed Surrender Value = 30% of basic premiums paid – 1st year’s premium and additional premium paid (if any).
This plan provides Special Surrender Value as well.
You want a loan against your policy - There is Loan available under this plan.
