Kotak Invest Maxima Plan

Overview

A unit linked assurance plan offering life insurance coverage and options to invest in different funds with various risk-return scenarios. Along with the life cover provided by the plan, multiple fund options under this policy can steadily add to the growth of investment. This Kotak Life plan comes with regular, limited and single premium payment options and is meant for people who wish to build a corpus through investing their savings in various funds.

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Eligibility Conditions for Kotak Life Invest Maxima Plan

The eligibility conditions for availing this policy can be depicted in the table mentioned below -

Parameter	Minimum	Maximum
Policy Term (in subsequent 5 Years gaps)	10	30
Entry Age	0 years	65 years
Maturity Age Life Option	10 years	75 years

Key Features of Kotak Life Invest Maxima Plan

This plan meant for wealth creation has the following salient features -

Parameters	Details
Plan Type	Unit-linked insurance plan
Basis	Individual policy
Policy Term	10 years to 30 years
Policy Validity	Will be for the chosen policy term in case all premiums have been paid
Basic Sum Assured	Criteria	Minimum	Maximum
	Age < 45 years (For Regular and Limited Pay Options)	Greater of 10x annualised premium or half the product of annualised premium times policy term	25 times the annualised premium
	Age >= 45 years (For Regular and Limited Pay Options)	Greater of 7x annualised premium or a quarter of the product of annualised premium times policy term
	Single Pay Option	1.25 times the Single Premium amount	5 times the Single Premium amount
Top up Sum Assured (TSA)	If age of the policyholder at the time of top up is less than 45 years, the TSA will be 1.25 times the top-up Premium, else if the age is equal to or more than 45 years, TSA will be 1.10 times the top-up Premium
Coverage	Maturity Benefit = Fund value of all balance units in the main account and top-up accounts, including survival units at the end of the policy term.
	Death Benefit = Greater of Sum Assured, Fund Value in Main Account, 105% of the premiums paid + Greater of Top-up Sum Assured, Fund Value in Top-up Account, 105% of the top-up premiums paid

	Surrender Benefit	Before completion of 5 years	After completion of 5 years
		Fund value minus discontinuation charges (if applicable) moved to Discontinued Policy Fund and paid out with accrued interest after 5 years’ completion	Fund value paid out immediately
Free look Period	30 days in case of online purchase. 15 days otherwise
Grace Period and Notice Period	30 days for annual payment mode, post which within the next 15 days, Kotak Life will send a notice to revive the policy. 30 days from date of receipt of notice is the notice period.
Partial Withdrawals	Allowed after a period of 5 policy years, provided the following terms are met - The withdrawal amount is Rs. 10,000 or more Minimum balance of one premium for Regular and Limited Pay and Rs. 10,000 for Single Pay must be maintained in the Main Account
Fund Choice Selection	Is allowed through - Switching - Moving accumulated funds from one fund to another Premium Redirection - Changing the premium allocation into a different set of funds
Settlement Option	Allows the Maturity Benefit to be availed in one of three available options - Installments over a frequency from quarterly to yearly payouts Part of maturity as a lump sum amount and the other as installments Entire maturity amount as a lump sum
Nomination and Assignment	Nomination and assignment facility available but only one can be chosen at a time
Reinstatement or revival	Policy, if not surrendered, can be revived within two years from the date of last unpaid premium

Benefits and Advantages of Invest Maxima Plan

This plan from Kotak Life utilizes different investment funds to aid in the growth of wealth and can be opted for by anyone aiming to achieve greater returns on long term savings. Life insurance provided by this policy throughout the policy term is an added benefit. The key advantages in opting for this plan can be mentioned in the following points -

Life cover is present throughout the policy term
Flexible long term policy tenures for an investment portfolio with variable risk and returns
Applicable tax benefits can be availed as per Section 80C and 10(10D) of the Income Tax Act
Multiple fund options and unlimited switches to and from different fund options

The key benefits under this policy can be explained as below -

Maturity Benefit - Paid once the policy reaches the maturity age, after the completion of the policy term, this amount can be paid to the policyholder or nominee. This amount includes the fund value of all the balance units in the main account and top-up account (if any)
Death Benefit - In case of the death of the insured life, Death Benefit will be payable to the nominee. This will be less the withdrawals made by the policyholder. This sum includes the higher of every sum assured, all the fund value and 105% of all premiums
Surrender Benefit - Policy has a lock-in period of 5 years. If surrendered within the lock-in period, funds move to Discontinuance Policy Fund and get paid after 5 years are complete. In case surrender is done after 5 years, fund value is paid out immediately
Tax Benefit - The contributions made towards the premiums of this policy can be tax deductible as per Section 80C and the received benefits can fall under Section 10(10D). Though these benefits are dependent on the prevailing tax laws

Investment of Funds under Kotak Life Invest Maxima Policy

This unit-linked plan from Kotak Life comes with five fund options that offer a variable mix of risk and return. The premiums paid could be used over all of the fund options, a specific few as chosen by the policyholder or even in a single one. Investment of premiums in funds can be done through two portfolios, namely -

Self Managed Portfolio Strategy - Fund management done by policyholder
Systematic Switching Strategy - All or most of the investment is done in money markets and a pre-defined amount is transferred into Classic Opportunities Fund or Frontline Equity Fund

The details about the available funds have been mentioned in the table below -

Fund Name	Details	Asset Categories			Risk and Return Rating
		Equity	Debt	Money Market
		Fund Ratios
Classic Opportunities Fund	Potentially higher returns	75-100%	0-25%	0-25%	Very High
Frontline Equity Fund	Potentially higher returns	60-100%	0-40%	0-40%	Very High
Balanced Fund	Moderate growth in diverse equities	30-60%	20-70%	0-40%	Moderately High
Dynamic Bond Fund	Preserves capital, relatively higher fixed returns	N/A	60-100%	0-40%	Moderate
Money Market Fund	Protects capital and negates risk	N/A	N/A	100%	Low

Charges in Kotak Invest Maxima Policy

Being an insurance plan that relies on various funds to generate wealth on the investment made, the policy entails charges on quite a few aspects of itself. The applicable charges on this policy are as follows -

Charge	Particulars
Premium Allocation Charge	No applicable charge
Fund Management Charge	1.35% per annum of fund value, chargeable daily for Classic Opportunities Fund, Frontline Equity Fund and Balanced Fund. On a similar basis, 1.20% per annum is the charge for Dynamic Bond Fund, 0.60% per annum is charged for Money Market Fund and 0.50% per annum for Discontinued Policy Fund
Policy Administration Charge (applicable for main premiums only)	Subject to Rs. 500 per month, for Single Pay - 0.22% per month for Years 1-5, for Regular and Limited Pay - 0.60% per month for entire policy term
Mortality Charge	Dependent on policyholder’s age and level of cover
Miscellaneous Charges	Rs. 500 for policy alteration
Partial Withdrawal Charges	Rs. 500 per request
Switching Charges	Rs. 500 per request, post the first free 15 switches
Premium Redirection	Rs. 100 per request
Policy Discontinuance Charge (calculated on Main Account Fund Value (MAFV) or Annualised Premium (AP) and for the first four years only, zero from fifth year onwards)	Year of Policy	Calculation
	Year 1	Lower of 6% of AP or MAFV <= Rs. 6000
	Year 2	Lower of 4% of AP or MAFV <= Rs. 5000
	Year 3	Lower of 3% of AP or MAFV <= Rs. 4000
	Year 4	Lower of 2% of AP or MAFV <= Rs. 2000

Premium Payment for Kotak Life Invest Maxima Policy

The details of premium payment for this plan can be summarised in the table below -

Premium Parameter	Details
Premiums	Regular Pay - INR 50,000 to INR 1,00,000 Limited Pay - INR 75,000 to INR 1,00,000 Single Pay - INR 1,00,000 to INR 2,50,000
Premium Paying Term (PPT)	Regular Pay - 10 years, 15 years, 20 years, 25 years, 30 years Limited Pay - 10 years, 15 years, 20 years, 25 years, 30 years Single Pay - Once
Premium Paying Frequency	Premiums can be paid in annual frequencies
Premium Paying Modes	ECS, debit cards, credit cards, cheques and other acceptable modes

Premium Discontinuation Scenario for Invest Maxima

Post the mentioned grace period, if in case premiums for the policy are not paid and the policy lapses, the risk cover will cease to exist after the policy discontinuation and the fund value (as on the date of policy discontinuance) minus the discontinuance charge (only for Regular and Limited Pay options) will be shifted into a Discontinued Policy Fund and the interest rate applicable on this fund is 4% per annum as of September 2015. This fund shall attract an FMC of 0.50% per annum. If this scenario happens within the first five policy years, the funds shall be paid out at the end of the lock-in period of five years. If the discontinuance happens after 5 policy years, one can convert the policy into a paid-up policy or ask for a time extension of up to 2 years to revive the policy, else one can withdraw from the policy without any risk cover and the fund value will be paid out immediately.

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GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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