It is very important to make sure you invest most of your savings in order to reap the maximum returns in the long run. Investment in mutual funds and other financial products like debt instruments and money market instruments are considerable options, but at the same time, optimum allocation among these products is also necessary. By investing in a unit-linked insurance plan, you can ensure the allocation of your savings along with life insurance coverage. Kotak Invest Maxima Plan is a promising option among other ULIP plans in the market. Offered by Kotak Life, it assures equilibrium among the investment options and the life insurance cover so that you can ensure dual benefits from the same investment.
What the Plan has to Offer?
Kotak Invest Maxima is a ULIP plan that is highly investment-centric and ensures that the maximum amount from your premiums is allocated to the right investment funds. The plan offers options among 5 investment funds and strategies of investment optimization. The key features of this plan are:
- There are no charges implied for the allocation of premiums
- The plan offers survival benefits. The benefits are provided as 2% of the fund value after the 5th and 10th year since policy inception.
- The plan offers you the option of selecting investment strategies among the two available options that are self-managed strategy and systematic switching strategy.
- The premium can be paid as a single premium, in limited pay or in regular pay option.
Fund Options in Kotak Invest Maxima Plan
The investment funds are the most important part of this policy. The return on your investments completely depends upon your choice of the investment strategy and investment funds. There are five different options in Investment funds, and they are:
- Classic Opportunities Fund: The classic opportunities fund ensures the maximization of gains on your investment and targets long-term growth of capital. This option of investment makes investments in medium to large scale companies in proportionate combinations to make sure that the investment portfolio is diversified. Risks involved in this particular fund are aggressive and focuses on the maximization of returns.
- Frontline Equity Fund: The frontline equity fund ensures a high growth in capital for progress in not only long-term but also short term. The fund invests into big companies, and the investment is made in large proportions. Risks involved in this particular fund are aggressive, and the returns are also generated accordingly.
- Balanced Fund: In the balanced fund there is a generation of medium returns on the investment made by you. This option invests into a combination fixed interest instruments and equities so that the investment portfolio of the policyholder is diversified. Risks involved in this particular fund are moderate, and the returns are also generated accordingly.
- Dynamic Bond Fund: In dynamic bond fund the generation of comparatively high returns on investment is focused upon and targets high fixed returns. A dynamic bond fund invests into high-quality corporate bonds. Risks involved in this particular fund are conservative, and the returns are also generated accordingly.
- Money Market Fund: There are no risks involved if the policyholder invests in this option of funds.
| S. No. | Fund Name | Equities | Debt | Money Market Instruments |
| 1. | Classic Opportunities Fund | 75-100% | 0-25% | 0-25% |
| 2. | Frontline Equity Fund | 60-100% | 0-40% | 0-40% |
| 3. | Balanced Fund | 30-60% | 20-70% | 0-40% |
| 4. | Dynamic Bond Fund | 0% | 60-100% | 0-40% |
| 5. | Money Market Fund | 0% | 0% | 100% |
Investment Strategies of Kotak Invest Maxima Plan
With the help of right investment strategies, the insured individuals can ensure that their funds are optimized well, and there is a maximum generation of returns as per their risk appetite. There are two investment strategies involved in the plan, and they are:
- Self-Managed Strategy: The self-managed strategy involves the selection of investment funds by the insured individual as per his/her risk appetite. The policyholder has to make a choice among the five investment funds involved under the plan. This strategy is suitable for individuals who are well aware of the financial market and have a good understanding of the risks of capital markets.
- Systematic Switching Strategy: The systematic switching strategy helps the individuals in assisting the individuals that are not aware of the capital markets very much. The strategy ensures that the funds are responsibly and systematically switched among the equities to generate maximum returns. The plan involves investing the maximum or all the investment amount in money market funds and thereafter a shifting of a fixed amount is done in equities. The amount that is shifted is either moved to frontline equity fund or classic opportunities funds based on the choice made by the policyholder.
Eligibility Criteria
| Particulars | Details |
| Minimum Premium to be Paid | · 1,00,000 INR (Single Pay)
· 75,000 INR (Limited Pay) · 50,000 INR (Regular Pay) |
| Maximum Premium to be Paid | · 25,00,000 INR (Single Pay)
· 1,00,000 INR (Limited Pay) · 1,00,000 INR (Regular Pay) |
| Minimum Age of Entry | 0 years |
| Maximum Age of Entry | 65 Years |
| Minimum Age of maturity | 10 Years |
| Maximum Age of maturity | 75 Years |
| Policy term | · 10 Years, 15 Years, 20 Years, 25 Years, 30 Years (Regular Pay)
· 10 Years, 15 Years, 20 Years, 25 Years, 30 Years (Limited Pay) · 10 Years (Single Pay) |
Benefits of the Plan
- In this plan, the policyholders receive flexibility in terms of selecting the policy term.
- In this plan, the policyholders receive flexibility for the mode of premium payment options. Single pay, regular pay and limited pay modes are the available options.
- The introduction of more capital in the investments by using the top up feature of the policy can be done by the policyholder. The top-ups can be introduced anytime apart from last five years of the policy. The minimum top-up amount has to be 20,000.
- The plan allows partial withdrawals so as to maintain the liquidity in the investments. These withdrawals can only be made after a time period of 5 years has passed, and the minimum amount has to be 10,000.
- There are tax benefits on the premium and claims of the plan under sections 80C and 10D of Income Tax Act respectively.
- The plan offers a grace period of 15 days for monthly payments and 30 days for yearly, half-yearly and quarterly payments to make the payments.
- The policyholder can surrender the policy only after a time period of 5 years has passed since the date of policy inception. If the policy is surrendered before 5 years, the fund value is transferred to the discontinued fund account once the discontinuance fee is deducted from the amount. In this account, a minimum of 4% return is assured to the policyholders. If the policy is surrendered after five years, the fund value will be provided to the insured without any deductions.
- If the maturity and death benefits are paid out by Kotak Life, the policy gets terminated.
- The policyholders are provided with a free look period of 15 days since the inception of the policy in order to think over the terms and conditions of the policy. if the policyholder surrenders the policy within this time frame, the amount paid by the policyholder is returned after the deduction of premium allocation and documentation charges.
Death Benefit and Maturity Benefit
In Kotak Invest Maxima Plan the death benefits are selected as per the higher value among the below-given options
- 105% of the total paid premiums paid till date
- Basic sum assured minus any partial withdrawals from fund value
- Fund value of the main account
The death benefit also includes higher of the following:
- Fund Value of the top-up account
- 105% of the total premiums as a top-up
- Top-up Sum Assured
Death benefit can’t be less than 105% of the paid premiums for both death benefits and top-up death benefits.
Maturity benefit in Kotak Invest Maxima Plan involves the total fund value and top-up value as on the date of maturity of the policy.
FAQs
- What is the entry age for Kotak Invest Maxima Policy?
In this Plan, the age of entry can be between 0-65 years.
- What is the maximum age of maturity in the plan?
The maximum age of maturity in the plan is 75 years.
- How many options are provided for the type of funds in the Plan?
There are five options of funds provided to the policyholders. These funds are:
- Classic Opportunities Fund
- Frontline Equity Fund
- Balanced Fund
- Dynamic Bond Fund
- Money Market Fund