Kotak Single Invest Advantage Plan

• One-time premium payment
• Enjoy loyalty additions
• Choose from any 3 investment strategies
• Option to invest in any 5 funds
• Boost your savings through Loyalty Addition
• Ease of liquidity through partial withdrawal
• 12 Free switches during a policy year
• 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
• Dynamic Gilt Fund
• Dynamic Bond 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 5 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 including Loyalty Additions is payable.

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, Fund Value including Loyalty Additions is payable. You have the option to receive the maturity payout as a lump sum or choose the settlement option.

Loyalty Addition

Loyalty Addition is a percentage of the average fund value in the three years prior the benefit payout. Loyalty Additions is 4%/5% for 10 years term and 5%/6% for 15 years term when single premium band is Rs 3,00,000 – 6,99,999/Rs 7,00,000 & above, respectively.

Loyalty additions are added every 5 years from the end of 10^th policy year. For 10 years policy term, it is added at the end of the 10^th policy year and for 15 years policy term, it is added at the end of the 10^th & 15^th policy year.

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.

Partial Withdrawal

Partial Withdrawal is allowed after completion of five policy years. The minimum partial withdrawal amount is Rs 5,000 and in multiples of Rs 1,000. The minimum balance required after such withdrawal is 50% of the Single Premium 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.

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. PAC is 3%/2% for single premium band of Rs 3,00,000 to Rs 6,99,999/Rs 7,00,000 and above, respectively.

Policy Administration Charge: No policy administration charge is levied under this plan.

Mortality Charges: Mortality charge is applied on Sum at Risk (SAR) and it is deducted on each Policy Month Anniversary. It is 0.888/1.056/1.803/2.155 for age 20 years/30 years/40 years/45 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, 1.20% p.a for Dynamic Bond 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 12 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. This charge can be increased to a maximum of Rs 2,000 subject to approval from IRDAI.

Miscellaneous Charges: The charge for replacement of policy document is Rs 500, Rs 250 for cheque dishonor.

Tax benefits can be availed under section 80C & 10(10D) under the Income Tax Act, subject to change in tax laws.

With an objective of wealth creation, Mr. Raj Aryan at 30 years of age chooses to buy Kotak Single Invest Advantage with the policy term of 15 years, single premium payment of Rs 10,00,000 and sum assured of Rs 1,00,00,000 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, Fund Value including Loyalty Additions 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 including Loyalty Additions is payable.

Benefit Illustration: