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Kotak Single Invest Advantage Plan

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Kotak Single Invest Advantage Plan
 
Kotak Single Invest Advantage Plan is a Single Premium Unit Linked Plan. Thus, it is a Linked Insurance Plan without Bonus facility.
 
How it works – In this plan, premium needs to be paid in a Lumpsum as it is a Single Premium Plan. This plan provides Loyalty Additions of 2.25% to 3% of the last 3 years’ average Fund Value.
 
There are 2 Options for choosing Death Benefit in this plan:
  • Option I - Basic Sum Assured = 5 X Single Premium paid. Thus, if the Life Insured dies within the first year of the Policy Tenure, Death Benefit payable is higher of Basic Sum Assured or Fund Value. However, if the Life Insured dies in any year from 2nd Policy Year onwards, then Death Benefit payable is higher of 25% of Basic Sum Assured or Fund Value
  • Option 2 - Basic Sum Assured = 1.25 X Single Premium paid. Thus, if the Life Insured dies in any year within the Policy Tenure, the Death Benefit payable is higher of Basic Sum Assured or Fund Value.
 
However, when the policy matures, the entire Fund Value is paid to the policyholder as the Maturity Benefit and the policy terminates.
 
There are 8 Funds in this plan for Investment Purpose.
 
 
Key Features of Kotak Single Invest Advantage Insurance Plan
 
  • This is a non-Traditional Unit Linked Plan without Bonus facility
  • Thus, in this plan, premium needs to be paid in a Lumpsum.
  • There is Loyalty Additions in this plan:
    • 2.25% for Premium of Rs 50,000 to Rs 1,99,999
    • 3% for Premium more than Rs 2,00,000
  • The Loyalty Additions are calculated as a % of the Average Fund Value of the last 3 policy years
  • In this plan, there are 2 options for choosing Death Benefit
  • In this plan, there are 8 funds for investment purpose


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Benefits you get from Kotak Single Invest Advantage Insurance Policy


Death Benefit – If the Life Insured dies within the policy tenure, Death Benefit is paid to the nominee

Option I - Basic Sum Assured = 5 X Single Premium paid, then Death Benefit is:
  • In First policy Year- Higher of Basic Sum Assured or Fund Value
  • From 2nd Policy Year onwards- Higher of 25% of Basic Sum Assured or Fund Value
Option 2- Basic Sum Assured = 1.25 X Single Premium paid, then Death Benefit is higher of Basic Sum Assured or Fund Value
 
Maturity Benefit – On maturity, the entire Fund Value is paid to the policyholder as Maturity Benefit and 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 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 Single Invest Advantage Policy
 

 

 
Minimum
Maximum
Sum Assured (in Rs.)
1.25 X Single Premium under Option II
5 X Single Premium under Option I
Policy Term (in years)
10
15
Premium Payment Term (in years)
Single
Entry Age of Life Insured (in years)
3
65
Age at Maturity (in years)
18
75
Single Premium (in Rs.)
30,000
No Limit
Payment modes
Yearly, Half-Yearly, Quarterly and Monthly
 
 

Sample illustration of Returns of Kotak Single Invest Advantage Plan

 

Age of Life Insured = 35 years

Policy Term = 15 years

Sum Assured= Rs.5,00,000 and Rs 1,25,000 respectively



Kotak Single Invest Advantage Plan Sample Benefit Illustration


 

Additional Features and Benefits of Kotak Single Invest Advantage Plan
 
Riders – There are No additional riders available with this policy.
 
Funds - There are 8 Funds for Investment Purpose:
  1. Classic Opportunities Fund
  2. Frontline Equity Fund
  3. Dynamic Floor Fund II
  4. Dynamic Bond Fund
  5. Dynamic Gilt Fund
  6. Money Market Fund
  7. Dynamic Floating Rate Fund
  8. Balanced Fund
 
Switch – Unlimited switch is allowed between all funds. The first 12 switches in a year are provided for free.
 
Top Up – is allowed. But the minimum amount required for a Top Up Payment is Rs 10,000 up to a maximum of 5 times the Single Premium paid, as an aggregate of all Top Ups. There is a Lock In period of 5 years for each Top Up Premium. The Sum Assured also increases accordingly:
  • If age at the time of Top-Up is less than 45 yrs, Additional Sum Assured = 1.25 X Top-Up Premium
  • If age at the time of Top-Up is 45 yrs or more, Additional Sum Assured = 1.10 X Top-Up Premium
 
Partial Withdrawal – Partial Withdrawals will be allowed after completion of 5 policy years. Minimum amount for Partial Withdrawal is Rs 5,000. The minimum amount required to be maintained as Fund Value is Rs 10,000.
 
 
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 be credited with a minimum interest rate of 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.
 
You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then the accumulated policy fund amount till the date of discontinuance shall be 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 will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will be credited with a minimum interest rate of 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 the insurance cover will cease and your fund value shall be paid immediately and the policy would be terminated.
 
You want a loan against your policy - There is Loan available under this plan. The minimum loan amount is Rs 10,000. The maximum loan value is 40% of the Fund Value of the policy at that time.



 
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