Kotak Ace Investment Plan

• Option to invest in any 7 fund options
• 3 investment strategies to choose from
• Convenient premium payment options
• Life insurance cover available
• Choose riders to boost protection
• Add more to your savings through top-ups
• Access your money through partial withdrawal
• 2 Free switches in a policy year
• Alteration in basic sum assured allowed
• Avail tax benefits

This policy offers following 7 investment funds, you can invest with that suit your investment objectives.

• Classic Opportunities Fund
• Frontline Equity Fund
• Balanced Fund
• Dynamic Bond Fund
• Dynamic Floating Rate Fund
• Dynamic Gilt Fund
• Money Market Fund

You have the option to choose from any of 3 investment strategies:

Self Managed Strategy: This strategy provides the flexibility to choose from a range of 7 fund options that enable you to maximize the earnings potential.

Age Based Strategy: With this investment strategy, the allocation of funds is done on the basis of Age & Risk Appetite. Under this strategy, allocation is done between Classic Opportunities Fund and Dynamic Bond Fund. This strategy offers three Risk Appetite options namely, Aggressive, Moderate, and Conservative.

Systematic Switching Strategy: This investment strategy enables you to invest all or part of the investment in Money Market Fund and transfer a pre-specified amount every month into, either Classic Opportunities Fund or Frontline Equity Fund.

Death Benefit

In the event of death of the life insured during the term of the policy, the highest of Basic Sum Assured less applicable partial withdrawal, 105% of the Premiums paid, or Fund Value in the Main Account is payable. The death benefit also includes the highest of Top-Up Sum Assured, Top-Up Fund Value, or 105% of the top-up premiums paid, in case of each top-up premium paid.

Up to the age of 60 years of life insured, Sum Assured payable on death is reduced to the extent of Partial Withdrawals made during the last two years prior the date of death. After 60 years of the life insured, Sum Assured payable on death is reduced to the extent of Partial Withdrawals made from 58 years onwards.

The minimum Death Benefit is at least equal to 105% of the single premium paid.

Maturity Benefit

On survival of the life insured till the end of the policy term, the total Fund Value including the fund value in top-up account is payable. You have the option to receive the maturity payout as a lump sum or choose the settlement option.

The policy terminates after payment of the maturity benefit.

Increase/Decrease in Sum Assured

Increase or Decrease in Sum Assured is allowed at policy anniversaries and it helps to keep your cover relevant.

Top-up Premium

The total top-up premium paid does not exceed the sum of all the premiums paid. Top-up premium has a lock-in period of 5 years from the date of Top-Up payment. Each top-up has a top-up sum assured of 125% or 110% of top-up amount depending on the age of the Life Insured at the time of payment of the top-up premium. The minimum Top-up premium allowed is Rs 10,000. You can exercise this option any time, except the last 5 years of the policy.

Settlement Option

Settlement Option is available at maturity and it provides you the flexibility to receive the maturity benefits either 50% as lump sum and balance 50% as periodic installments or whole amount through periodic installments. The installment period cannot exceed the maximum period of 5 years.

This option has to be intimated to the company with-in 3 months before the date of maturity. The life insured also has to specify the mode of the periodic installments as annually, semi annually, or quarterly at the point of pre-settlement notification.

Switching

You can switch between fund options to capitalize market opportunities.

Premium Re-direction

Premium Re-direction facility is available to alter future premium allocation based on investment strategies.

Partial Withdrawal

Partial Withdrawal is allowed after completion of five policy years. The minimum partial withdrawal amount is Rs 10,000 and the minimum balance required after such withdrawal is equal to 50% of the total premiums paid.

Bonus

The plan is not eligible for the bonuses as it is a non-participating life insurance plan.

Loan Benefit

No loan benefit can be availed under this plan.

Surrender Value

Upon surrendering the policy with-in the lock-in period of 5 years, the fund value less applicable discontinuance charges is credited to the ‘Discontinued Policy Fund’ and it is refunded upon completion of lock-in period. The proceeds after addition of interest subject to a minimum of 4% per annum is payable after the end of the lock-in period.

Upon surrendering the policy after the lock-in period of 5 years, the Fund Value including Loyalty Additions as on the date of surrender is payable.

Following riders can be opted, on payment of additional rider premium:

• Kotak Accidental Death Benefit Rider (Linked)
• Kotak Permanent Disability Benefit Rider (Linked)

Premium Allocation Charges (PAC): This charge is deducted from the premium paid and the net premium is then allocated at the Net Asset Value. PAC is 6%/4%/2% for year 1 & 2/years 3 to 5/years 6 onwards, respectively. The allocation charge for Top-Up premiums is 2%.

Policy Administration Charge: Monthly policy administration charge is levied by the redemption of units under the policy. It is 0.10% per month as a percentage of the first year’s annualized premium for annualized premium band of up to Rs 9,99,999. No policy administration charge is levied for annualized premium band of Rs 10,00,000 and above. This charge shall not exceed Rs 500 per month.

Mortality Charges: Mortality charge is applied on Sum at Risk (SAR) and it is deducted on each Policy Month Anniversary. It is 0.999/1.445/2.328/5.244 for age 20 years/30 years/40 years/50 years, respectively.

Fund Management Charges: Fund management charge levied is a percentage of the Fund Value. It is 1.35% p.a for Classic Opportunities Fund, Frontline Equity Fund & Balanced Fund, 1.20% p.a for Dynamic Bond Fund & Dynamic Floating Rate Fund, 1% p.a for Dynamic Gilt Fund, 0.60% p.a for Money Market Fund, 0.50% p.a for Discontinued Policy Fund.

Discontinuance Charge: This charge is levied, in case the policy is discontinued during the first 4 policy years. This charge is levied as applicable under the policy terms & conditions. For more details, please refer the policy brochure.

Switching Charge: You can avail 2 free switches in a policy year and upon exercising more switches, Rs 250 is applicable on each additional switch. Switching is applicable for Self-Managed Strategy only.

Partial Withdrawal: Rs 250 per partial withdrawal is levied.

Miscellaneous Charges: The charge for replacement of policy document is Rs 250 per request, alteration in basic sum assured is Rs 500, Rs 100 for premium re-direction, and Rs 250 for cheque dishonor.

Tax benefits can be availed under section 80C & 10(10D) as applicable under the Income Tax Act, subject to amendments from time to time.

Mr. Roy at 35 years of age, is looking to build a corpus amount, so his family can achieve their dreams. In order to achieve the financial goals, he opts to buy Kotak Ace Investment with the policy term of 20 years (regular pay), annual premium of Rs 50,000 and sum assured of Rs 5,00,000 under Self-Managed Strategy with 100% investment in Classic Opportunities Fund.

Scenario A- Maturity Benefit: In case of his survival till maturity of the policy, the total Fund Value including the fund value in top-up account is payable.

Scenario B- Death Benefit: In the event of his death during the policy term, the highest of Basic Sum Assured less applicable partial withdrawal, 105% of the Premiums paid, or Fund Value in the Main Account is payable. The death benefit also includes the highest of Top-Up Sum Assured, Top-Up Fund Value, or 105% of the top-up premiums paid, in case of each top-up premium paid.

Benefit Illustration: