Kotak Ace Investment Plan

Updated: 29-08-2023 06:19:05 AM

Using the right tools for making investments can help you not only in making savings but also in creating wealth. Kotak Ace Investment Plan is one such tool that can help in making investments along with providing coverage. The plan is a smart investment option in the form of unit linked insurance plan (ULIP). Kotak Life Insurance is one of the most trusted providers in terms of life insurance.

Kotak Ace Investment Insurance Plan Details

Eligibility 

Particulars	Details
Minimum Premium to be Paid	Rs 1,00,000
Minimum Age of Entry	0 years
Maximum Age of Entry	60 Years (Limited Pay) 65 Years (Regular Pay)
Minimum Age of maturity	18 Years
Maximum Age of maturity	75 Years
Minimum Policy term	10 Years
Maximum Policy term	30 Years

Features

The plan has the below-mentioned features that make it stand apart in the market:

1. The plan provides multiple options in terms of investments funds so as the plan is customized according to your risk appetite.
2. The premium payment offered by Kotak is very convenient making it very easy to maintain the policy.
3. The plan offers adequate life insurance according to the requirements of policyholders and their beneficiaries.
4. The plan also has options for rider policies so that you can maximize the coverage involved.
5. The plan offers liquidity in terms of partial withdrawals that making it highly convenient to access the money invested by you.

Fund Options in Kotak Ace Investment Plan

There are multiple options in terms of investment funds in the plan that allow the policyholder to make the investments in the funds as per their risk appetite. The options of investment funds given to the policyholders are:

1. Classic Opportunities Fund: This fund focuses on the maximization of returns on investment and targets long-term growth of capital. The fund makes investments into a combination of medium to large scale companies in order to make sure that the portfolio of investments is diversified. The risks and returns ratio of this fund is aggressive and focuses on the maximization of returns.
2. Frontline Equity Fund: This fund focuses on high growth of capital for both long and short-term growth. The fund makes investments into large-scale companies and in large proportions. The risks and returns ratio of this fund is aggressive, and the returns are also generated accordingly.
3. Balanced Fund: This fund focuses on the generation of moderate returns on investment. The fund makes investments into a combination fixed interest instruments and equities to make sure that the portfolio of investments is diversified. The risks and returns ratio of this fund is moderate, and returns are generated accordingly.
4. Dynamic Bond Fund: This fund focuses on the generation of relatively high returns on investment and targets high fixed returns. The fund makes investments into high-quality corporate bonds. The risks and returns ratio of this fund is conservative.
5. Dynamic Floating Rate Funds: The plan focuses on decreasing the risks involves in interest rate fluctuations. The fund makes investments into a combination of floating rate debt interest. The generation of returns is as per the movement of interest rates. The risks and returns ratio of this fund is conservative.
6. Dynamic Gilt Fund: The safety of capital is ensured with the help of making an investment into government securities when it comes to dynamic gilt fund. The default risk in this investment fund is zero. The risk ratio in this fund is conservative.
7. Money Market Fund: In money market funds there are no downside risks involved. The complete protection of the capital amount is ensured by the fund, and hence there are no risks involved.

Fund Name	Equities	Debt	Money Market Instruments
Classic Opportunities Fund	75-100%	0-25%	0-25%
Frontline Equity Fund	60-100%	0-40%	0-40%
Balanced Fund	30-60%	20-70%	0-40%
Dynamic Bond Fund	0%	60-100%	0-40%
Dynamic Floating Rate Funds	0%	60-100%	0-40%
Dynamic Gilt Fund	0%	80-100%	0-20%
Money Market Fund	0%	0%	100%

 Investment Strategies under Kotak Ace Investment Plan

The investment strategies allow a policyholder in optimizing the investments with or without the help of the insurance provider. These strategies are explained below:

1. Self-Managed Strategy: In this strategy, Kotak Life Insurance provides the customer the liberty of selection of his/her own investment strategy. For this the investor/policyholder to make a choice himself among the above-mentioned options of investment funds offered by the company.
2. Age-Based Strategy: This option of investment strategy is appropriate for those who do not have the required time and knowledge required for the selection of investment options. The strategy focuses on more and more investments to be made in equities for the investors in the early stages of their life. As the age of the policyholder increases, the investments are shifted towards debts. This is done as the risk appetite of the younger individual is considered higher than older people as the older investors need more stability in returns. The funds are invested in Dynamic Bond Fund and Classic Opportunities Fund. The allocations are shifted from aggressive to moderate and then to conservative with the age of the insured.
3. Systematic Switching Strategy: In this investment strategy focuses on maximizing the benefits from investments made in equities by switching of investments in systematic ways. This strategy invests all or the maximum amount of money in the money market funds and then a fixed monthly amount is shifted from this fund. This shifted amount is either moved to frontline equity fund or classic opportunities funds based on the choice made by the policyholder.

Riders with Kotak Ace Investment Plan

This ULIP offers two riders that provide additional benefits.

1. Kotak Accidental Death Benefit Rider: On availing this rider facility, if the life insured happens to die due to an accident during the rider benefit term, his /her beneficiary will get the rider benefit along with the death sum assured. The annual charge for the rider is 0.45 per Rs 1000 Rider Sum Assured.
2. Kotak Permanent Disability Benefit Rider: During an accident

Benefits of Kotak Ace Investment Plan

1. The plan gives the policyholders flexibility in terms of selection of term of the policy.
2. The policyholder can also choose the mode of premium payment options. The available options are single pay, regular pay and limited pay modes.
3. For regular pay mode and limited pay mode, the frequency of payment can also be chosen from monthly, quarterly, half yearly or annually. In case of systematic switching strategy monthly and quarterly modes are not available.
4. The policyholder can also introduce more capital in the investments by using the top up feature of the policy.
5. Additional riders are also available under this plan for increased coverage to the policyholders. The available riders are Kotak Accidental Death Benefit Rider and Kotak Permanent Disability Benefit Rider.
6. There are tax benefits on the premium and claims of the plan under sections 80C and 10 (10D) of the Income Tax Act respectively.

Death Benefit

The death benefits in the policy can be the higher of the below options:

1. Basic sum assured exclusive of any partial withdrawals from fund value
2. Fund value of the main account
3. 105% of the total paid premium to the company

The below benefits are provided along with the death benefits with respect to the top-up amount invested:

1. Top-up Sum Assured
2. Fund Value as per the top-up account
3. 105% of the total premium paid as the top-up

The death benefit cannot be lower than 105% of the paid premiums in case of both death benefits and top-up death benefits.

Maturity Benefit

The maturity benefit includes the complete fund vale and top-up value as on the date of maturity of the policy.

FAQs

Q1. How many options are provided for the type of funds in the Plan?

There are seven options of funds provided to the policyholders that are differentiated on the basis of their risk profile and fund allocations. These funds are:

1. Classic Opportunities Fund
2. Frontline Equity Fund
3. Balanced Fund
4. Dynamic Bond Fund
5. Dynamic Floating Rate Funds
6. Dynamic Gilt Fund
7. Money Market Fund