Investment Plans 321 views December 22, 2021

Unit-linked Insurance Plans (ULIPs) provide you benefits based on the market returns, so there are higher chances of capital growth. Kotak Life Insurance provides you with a wide variety of ULIPs with different fund options – equity, debt and hybrid You can choose to invest in any of these funds using any of the available investment strategies – Self-managed Strategy, Age-based Strategy, Systematic Switching Strategy and Systematic Exit Strategy. And in case you die during the policy period, the insurer will pay a death benefit to your family. Read this page below and check out the top Kotak Unit-linked Insurance Plans and their benefits.

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Kotak Unit-linked Insurance Plans & Benefits

The following are the ULIPs offered by Kotak Life Insurance, check out their features and see which is more suitable as per your financial goal.

Kotak Ace Investment ULIP Plan

You will get the following benefits during the policy term under the Kotak Ace Investment Plan.

Maturity Benefit when You Survive till the End of the Term

On the maturity date, you will get the fund value + top-up fund value (if any). The company allows you to use the settlement option to receive the maturity proceeds in installments. But for this, you need to notify the insurer three months before the maturity date. You can choose from the following options: –

  • Maturity proceeds in a lump sum
  • Part of the maturity proceeds in a lump sum and a part in installments
  • Whole maturity proceeds in installments

If there is any balance amount in the main and top-up account at the end of the settlement period, it shall be paid to you in a lump sum and the policy will terminate. You can receive the installments for up to five years.

Note – Under the settlement option, the number of units shall liquidate as per their respective fund net asset values (NAVs) on the date of each payment.

Death Benefit for Your Nominee

The insurance company pays a death benefit to your nominee in case of your demise during the policy term. This is the highest of the following –

  • Fund value in the main account + fund value of the top-up account (if any)
  • Basic Sum Assured – Partial Withdrawal from the Main Account + Top-up Sum Assured (if any)
  • 105% of the paid premiums + 105% of the top-up paid premiums (if any) as on the date of death

Kotak Platinum ULIP Plan

Under the Kotak Platinum ULIP Plan, the insurer will provide you with the below-mentioned benefits –

Maturity Benefit Upon Your Survival till the End of the Policy Term

You will get the fund value with all survival units and top-up fund value (if any). If you want, you can receive this benefit either in a lump sum or installments for up to 5 years.

Death Benefit for Your Family If You’re Not Around

Your nominee will receive the highest of the following in case of your death during the policy term:

  • Fund Value in the Main Account + Fund Value in the Top-Up Account, if any
  • 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

Survival Units Available to You During the Policy Term

In case of a long policy term, a substantial corpus will be added to your fund called survival units from the end of the 10th policy year. This will be equal to 2% of the average fund value (main account) in the previous three years.

Kotak Single Invest Advantage Plan

Under this Kotak ULIP, you’ll get the following benefits from the insurer –

Maturity Benefit if You’re Alive till the End of the Policy Term

Upon survival till the end of the policy term, the Fund Value + Loyalty Additions shall be payable to you. You can receive the proceeds in installments using the settlement option if you want.

Death Benefit for the Nominee for Family’s Financial support

If you die during the policy term, the company shall pay a death benefit to the nominee which is the highest of the following –

  • Fund Value in Main Account + Loyalty Additions (if any)
  • Basic Sum Assured – Partial Withdrawals (if any)
  • 105% of the paid premium

Loyalty Additions Under Kotak Single Invest Advantage

You’ll get loyalty additions on your chosen fund to add up your returns. These additions shall accrue every five years from the end of the 10th policy year, provided the policy is in force and all premiums are paid. For a 10-year policy term, the addition shall be made at the end of the 10th year, and at the end of the 10th and 15th year for a 15-year policy term. Check out the table below and see the additions based on your chosen premium amount.

Single-premium Amount (In INR)Loyalty Additions
For a 10-year Policy TermFor a 15-year Policy Term
3,00,000 - 6,99,9994%5%
7 Lakh and above5%6%

Note The loyalty addition is the percentage of the average fund value in the preceding three years.

What are the Investment Options Under Kotak Unit-linked Insurance Plans?

These Kotak Unit-linked Insurance Plans come with the following fund options.

Classic Opportunities Fund – You can maximize the opportunity for long-term capital growth with this fund through investments in stocks of large or mid-sized companies.

Frontline Equity Fund – It offers you high capital growth as it holds a significant portion of your money in the equities of large-sized companies.

Balanced Fund – Get moderate growth of your money through investments in a mix of equities and fixed-interest instruments.

Dynamic Floating Rate Fund – You can preserve your capital by investing in high-quality corporate bonds while generating fixed returns with this fund.

Dynamic Bond Fund – It will minimize 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 – Get your capital secured with this fund as investments are made in Govt. Securities where default risk is close to zero.

Money Market Fund – It protects your capital with no downside risks by investing 100% of the money in money-market instruments.

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