Investment Plans 363 views November 30, 2021

Kotak Platinum is unit-linked insurance that helps you gain wealth at low charges. Along with that, you’ll get a life cover that ensures financial protection for your family in case of your demise. Check out the key features of this Kotak Life Insurance Plan

  • Multiple investment strategies
  • Riders to enhance protection
  • Liquidity through partial withdrawals
  • Death Benefit
  • Maturity Benefit
  • Survival Units

Read this page further and learn more about these and the other benefits of the Kotak Platinum ULIP Plan.

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Kotak Platinum ULIP Plan Benefits for the Life Assured & Nominated Person

The insurance company shall provide you and the nominee the following benefits under the Kotak Platinum ULIP Plan –

Maturity Benefit

You will get the fund value with all survival units and top-up fund value, if any. The insurer provides you the options to receive the maturity payout in a lump sum or installment up to 5 years.

Death Benefit

Your nominee will receive the highest of:

  • Basic Sum Assured – Partial Withdrawals + Top-Up Sum Assured, if any
  • 105% of the Paid Premiums + 105% of the Paid Top-Up Premiums, if any
  • Fund Value in the Main Account + Fund Value in the Top-Up Account, if any

Survival Units

If you choose a long policy term, a substantial corpus will be added to your fund known as survival units. These units will add every five years starting from the end of the 10th policy year. The survival unit is equal to 2% of the average fund value (main account) in the previous three years.

Additional Protection of Rider

You can choose any of the two riders to enhance your coverage under the Kotak Platinum ULIP Plan.

Kotak Accidental Death Benefit Rider – The company shall pay your nominee the rider sum assured in case of your unfortunate demise due to an accident.

Kotak Permanent Disability Benefit Rider – If you suffer from total and permanent disability due to an accident, the rider sum assured is payable to you, and the base policy continues with the same benefits.

Kotak Platinum ULIP Plan Investment Options

You can invest your money in the funds using any of the following strategies –

Self-managed Strategy

Here, you can invest in any of the seven funds as per your earning potential and manage your investments on your own.

Classic Opportunities Fund – With this fund, you can maximize the opportunity for long-term capital growth as investments are made in the stocks of large or mid-sized companies.

Frontline Equity Fund – Get high capital growth with this fund as it holds a significant portion of your money in the equities of large-sized companies.

Balanced Fund – For moderate growth of your funds, investments are made in a mix of equities and fixed interest instruments.

Dynamic Floating Rate Fund – The fund aims to preserve your capital by investing in high-quality corporate bonds while generating fixed returns.

Dynamic Bond Fund – The fund minimizes the downside of interest rate risk through investments in floating rate debt instruments that offer returns in line with interest rate movements.

Dynamic Gilt Fund – Your capital is secured as the investments are made in Govt. Securities where default risk is close to zero.

Money Market Fund – The company protects your capital with no downside risks under this fund.

Age-based Strategy

Your money shall be allocated based on your age and risk appetite. The company provides you the following options to choose from – Aggressive, Moderate and Conservative. And the allocation is made between Classic Opportunities Fund and Dynamic Bond Fund. you can’t switch to this strategy in the last policy year.

Systematic Switching Strategy (SSS)

This will help transfer a predefined amount every month into either Classic Opportunities Fund or Frontline Equity Fund from Money Market Fund as chosen by you. The transfer of units is automatically executed at the beginning of the policy month or even at policy inception.

Systematic Exit Strategy (SES)

Using this, you can secure funds from short-term market volatility during the last policy year. The units switch out of the Classic Opportunities Fund or Frontline Equity Fund to the Money Market Fund to secure your returns.

Partial Withdrawals

You are allowed to withdraw from your investments after the completion of five policy years to meet your financial needs. The minimum amount for partial withdrawal is INR 10,000, and after the partial withdrawal, the fund value should be equal to 50% of the total paid premiums. However, if the fund value in the main account falls below 50% of the total paid premiums due to the withdrawal charge or NAV, the policy will continue till the fund value remains positive in the main account.

The company first withdraws units from the top-up account. If you do a withdrawal and your age is up to 60 years, the basic sum assured payable on death is reduced to the extent of withdrawal amount made two years before the date of death. If you die after attaining the age of 60 years, the basic sum assured payable is reduced to the extent of all partial withdrawals made from the age of 58 years onwards.

Kotak Platinum ULIP Plan Policy and Premium Payment Terms

You can choose a policy term of 10 years wherein the premium payment term remains 5 years. Or choose a policy term of 15 to 30 years and pay for a limited period of 10 years or regularly till the end of the policy term. You can pay premiums yearly, half-yearly, quarterly or monthly. However, the Systematic Switching Strategy is not available for quarterly and monthly modes of premium payment. The minimum premium amount is –

  • INR 99,000 Yearly
  • INR 49,500 Half-Yearly
  • INR 24,750 Quarterly
  • INR 8,250 Monthly

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