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Kotak Platinum Plan

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Kotak Platinum Plan

Kotak Platinum Unit Linked Insurance Plan is a simple 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 the entire policy tenure under Regular Payment Option or for a limited period for Limited Payment Option.
 
There are 8 funds for investment purpose. There are Loyalty Additions in this plan every 5 years starting from the end of the 10 policy year onwards which is equal to 2% of the Average Fund Value. There are additional riders in this plan as well, for enhanced coverage.
 
The Fund Value, inclusive of all Loyalty Additions, is paid at the end of the policy tenure as Maturity Benefit. 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 Platinum 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
  • There are Loyalty Additions in this plan every 5 years starting from the end of the 10 policy year onwards
  • Loyalty Additions in this plan is equal to 2% of the Average Fund Value
  • On survival till the end of the Policy Tenure, the Fund Value, inclusive of Loyalty Additions 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 Platinum 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, inclusive of all Loyalty Additions, 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 Platinum Policy       

 
Minimum
Maximum
Sum Assured (in Rs.)
Age<45 yrs, SA= Higher of (10 X AP) or (0.5 X PTX 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.)
Annual – Rs 99,000,
Half-Yearly - Rs 49,500 , Quarterly - Rs 24,750
Monthly - Rs 8,250
No Limit
Payment modes
Annual, Half-yearly, Quarterly and Monthly
 
 

Sample Benefit Illustration of Kotak Platinum Unit Linked Insurance Plan

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

Kotak Platinum Plan Sample Benefit Illustration

 

Additional Features and Benefits of Kotak Platinum 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 Accidental Death Benefit (ADB) - Lump sum Benefit paid on accidental death
  • Kotak Permanent Disability Benefit (PDB) - Installments paid on being permanently disabled as a result of an accident
 
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 and maximum Top Up is 10 x Annual Premium. 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 12 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 Platinum Unit Linked Insurance Plan

Premium Allocation Charge – This charge is deducted from the Premium Paid by you
 
Policy Year
Premium of Rs 99,000 to Rs 4,99,999
Premium of Rs 5,00,000 to Rs 24,99,999
Premium of Rs 25,00,000 and above
1st
5% of Premium
4% of Premium
2% of Premium
2nd to 5th
3% of Premium
3% of Premium
2% of Premium
6th onwards
1.5% of Premium
1.5% of Premium
1.5% 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
Rs 99,000 to Rs 4,99,999
0.2% of the Annualized Premium p.m.
Rs 5,00,000 to 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
1.20% of the Dynamic Bond Fund Value
Dynamic Floating Rate Fund
1.20% of the Dynamic Floating Rate Fund Value
Dynamic Gilt Fund
1.00% of the Dynamic Gilt Fund Value
Money Market Fund
0.6% of the Money Market Fund Value
Discontinued Policy Fund
0.5% of the Discontinued Policy 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 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 a period of 2 years from the Date of Discontinuance of the Policy or before completion of the Lock-in period of 5 policy years, whichever is earlier.
 
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 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.


 
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