Kotak Invest Maxima Plan

• Flexibility to invest in any of 5 fund options
• Choice of 2 investment strategies
• No premium allocation charge
• Survival Units to boost fund value
• Rewards for staying invested for a longer time
• Flexible premium payment options
• Life insurance benefit
• Enjoy liquidity through partial withdrawals
• Avail switching/premium redirection facility
• Avail tax benefits

This policy offers following 5 investment funds, you can invest with that suit your investment objectives.

• Classic Opportunities Fund
• Frontline Equity Fund
• Balanced Fund
• Dynamic Bond Fund
• Money Market Fund

You have the option to choose from any of the two portfolio strategies.

Self Managed Portfolio Strategy: This strategy provides the flexibility to choose from a range of 5 fund options that enable you to maximize the earnings potential.

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 policy term, the higher of Basic Sum Assured, 105% of the premiums paid, or Fund Value in the Main Account including Survival Units is payable. The Death Benefit also includes the higher of Top-up Sum Assured, 105% of the top-up premium, or Fund Value of the top-up account, 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.

Maturity Benefit

On survival of the life insured till the end of the policy term, the sum of Fund Value in the Main Account including Survival Units and Fund Value in Top-Up Accounts (if any), is payable. You have the option to receive the maturity payout as a lump sum or choose the settlement option.

Survival Units Addition

Survival Units are added every 5 years, starting from the end of the 10th policy year. Survival Units are equal to 1%/2% of the average Fund Value in the previous two years for annual/single premium of Rs 50,000 to Rs 74,999/Rs 75,000 & above, respectively. These additions are credited to the Main Account.

Alteration in Basic Sum Assured

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

Top-up Premium

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 20,000. You can exercise this option any time, except the last 5 years of the policy.

The top-up premiums should not exceed the sum of all premiums paid and these are invested in separate top-up accounts. Top-up premium has a lock-in period of 5 years from the date of Top-Up payment.

Settlement Option

Settlement Option is available at maturity and it provides you the flexibility to receive the maturity benefits through 3 following options:

• Entire maturity proceeds as an immediate payout
• Whole amount as installments
• Part of the maturity proceeds as a lump sum and part as installments

This option has to be intimated to the company within 3 months before the date of maturity. The life insured can take periodic installments as annually, semi-annually, or quarterly over a maximum period of 5 years.

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 the one premium (for Regular & Limited Premium payment option) and Rs 10,000 for Single Premium Payment option. Partial Withdrawals must be done first from the qualifying Top-Up Account.

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 (Regular & Limited Pay Option), 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. For Single Pay Option, the discontinuance charges are not deducted.

Upon surrendering the policy after the lock-in period of 5 years (Regular & Limited Pay Option), the Fund Value as on the date of surrender is payable. For Single Pay Option, the Fund Value in the main and top-account is payable immediately.

No riders can be attached under this plan.

Premium Allocation Charges (PAC): This charge is deducted from the premium paid and the net premium is then allocated at the Net Asset Value. No Premium Allocation Charge is levied under this plan.

Policy Administration Charge: Monthly policy administration charge is a percentage of the first year’s annualized premium  and it is levied by the redemption of units under the policy. It is 0.22% per month for first five policy years/0.60% per month up to the premium payment term for single pay/regular & limited pay, respectively. These charges are levied up to a maximum of 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 1.199/1.404/2.464/6.293 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, 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 first fifteen free switches (including 12 automatic fund switches) in a policy year and upon exercising more switches, Rs 500 is applicable on each additional switch.

Partial Withdrawal: Rs 500 per partial withdrawal is levied and this charge may be increased to a maximum of Rs 2,000 subject to approval from IRDAI.

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

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

Lokesh wants to buy a plan that can help him accumulate wealth plus provides life cover as well. He thus chooses to invest with Kotak Invest Maxima with the policy term of 20 years (regular pay), annual premium of Rs 1,00,000 and sum assured of Rs 10,00,000.

Scenario A- Maturity Benefit: In case of his survival till maturity of the policy, the sum of Fund Value in the Main Account including Survival Units and Fund Value in Top-Up Accounts (if any), is payable.

Scenario B- Death Benefit: In the event of his death during the policy term, the higher of Basic Sum Assured, 105% of the premiums paid, or Fund Value in the Main Account including Survival Units is payable. The Death Benefit also includes the higher of Top-up Sum Assured, 105% of the top-up premium, or Fund Value of the top-up account, in case of each Top-Up Premium paid.

Benefit Illustration: