Kotak Platinum Insurance Plan: Features & Review

Published: 06-03-2019 07:20:54 AM

Our financial requirements keep on changing with times. Kotak Platinum Insurance plan is an investment plan that steps in to meet your changing financial requirements with just nominal charge and customization options. Due to flexibility, it helps the policy holder to control their investment and savings options as per individual’s long and short term goals. This investment plan comes with diverse investment options that are directed towards increasing your returns from your wealth.  At the same time, this investment plan also protects your family financial wellbeing.

 

What the Plan Has to Offer?

 

Kotak Platinum has the below-mentioned features that setit apart from other options available in the market:

1. The premiums in this plan are highly affordable and can help you in maximizing your wealth efficiently.
2. The plan ensures that you are provided with options of multiple strategies of investments so that your money is allocated as per your preferences.
3. The survival units offered by Kotak Platinum help you in ensuring that your long-term savings are maximized.
4. The policy related payment terms are also flexible making the policy easier to manage.
5. The plan also offers riders to maximize the insurance cover involved.
6. The investment liquidity is maintained through partial withdrawals.

Options of Investment Funds

There are seven investment options that are offered under the plan which ensures the funds are allocated as per your preferences. The major difference among these options is of the fund compositions that determine the amount of risks attached with the investment. The options of investments are explained as follows:

S. No.	Fund Name	Description	Equities	Debt	Money Market Instruments
1.	Classic Opportunities Fund	The classic opportunities fund aims at long-term capital growth and maximum return on investments. Under this option, the investments are made into big and medium-sized companies to keep the portfolio diversified. The risks and returns ratio of this fund is aggressive and focuses on the maximization of returns.	75-100%	0-25%	0-25%
2.	Frontline Equity Fund	In the frontline equity funds, higher growth in terms of capital is ensured whether it is short-term growth or long-term growth. The investments made under this fund are into large-scale companies that too in bigger proportions. Risks and returns ratio of this fund is aggressive, and the returns are also generated accordingly.	60-100%	0-40%	0-40%
3.	Balanced Fund	In the balanced fund, the investments are made focusing on the moderate returns on investments. The investments that are made mainly consist of equities and fixed market instruments. The portfolio of investment is diverse in this particular investment option. The risks and returns ratio of this fund is moderate, and returns are generated accordingly.	30-60%	20-70%	0-40%
4.	Dynamic Bond Fund	The returns that are generated in dynamic bond funds are relatively high as the investments are made in fixed market investments with high returns. High-quality corporate bonds are the major center investments made under the plan. The risk factor in this` option is conservative, and the returns are generated accordingly.	0%	60-100%	0-40%
5.	Dynamic Floating Rate Funds	The risks included in the fluctuations of interest rates are minimized under Dynamic Floating Rate Funds. The investments are made into debt instruments with floating rates of interest. The returns are generated with the help of fluctuations in rates of interests. The risks and returns ratio of this fund is conservative.	0%	60-100%	0-40%
6.	Dynamic Gilt Fund	In the Dynamic gilt fund, the risks of investments are the bare minimum. The investments made in this option are highly into the government securities. The default risk in this investment fund is zero. The risk ratio in this fund is conservative.	0%	80-100%	0-20%
7.	Money Market Fund	This type of investment fund involves no downside risks as all the investments are made in the money market instruments. The complete protection of funds is ensured in this fund, but the returns are also generated accordingly.	0%	0%	100%

 

Investment Strategies of Kotak Platinum Insurance Plan

There are three strategies of investments in this plan and they are as follows

1. Self-Managed Strategy: The self-managed strategy allows the policyholders to make a choice among the available above-written investment funds as per their risk appetite.
2. Age-Based Strategy: The age-based strategy works on the simple principle that the risk appetite of an individual is directly influenced by his/her age. The plan can easily be opted by all the individuals as it does not require financial expertise. The investments are allocated as per the age of the investors. The premiums of investors that are of a younger age are invested in equities, and those paid by older investors are invested in debts. The allocations among the investments are made as per the increasing age of the investor. The investments are allocated among classic opportunities funds and dynamic bond funds. The risk profile of the investments is shifted among aggressive, moderate and conservative.
3. Systematic Switching Strategy: In this strategy, the allocated funds are systematically shifted from one fund to another to ensure maximization of returns. The initial investment is made into the money market instruments, and thereafter the investment is shifted by investing a fixed amount of money in equities on a monthly basis. The funds are shifted either to the classic opportunities fund or the frontline equities fund.

Benefits Under the Plan

1. The plan offers dual benefit of investment and insurance in one product.
2. The charges of fund allocation are very low so that maximum premium can be used for investments.
3. There are multiple funds and strategy options to choose from.
4. The plan offers two optional riders to maximize the insurance cover. These riders are Kotak Accidental Death Benefits Rider and Kotak permanent disability benefit rider.
5. The plan allows partial withdrawals after a period of 5 years has passed since policy inception.
6. The death benefit is higher of basic sum assured (exclusive of partial withdrawals), 105% of total paid premiums and fund value of the main The top-up death benefit will also be provided in addition to the death benefit. The top-up benefit will include top-up sum assured, 105% of the top-up premiums or the top up fund value, whichever is higher.
7. The maturity benefit in the policy includes the fund value and the survival units.
8. There are tax benefits on the premiums and claims under the sections 80C and 10D of Income Tax Act respectively.

Eligibility Criteria

 

Parameters	Min	Max
Entry Age	0 Yrs	65 Yrs
Maturity Age	18 Yrs	75 Yrs
Policy Term	10 Yrs	30 Yrs
Payment Mode	Yearly, Half-yearly, Quarterly and Monthly
Annual Premium	INR 99,000 (Annually) INR  49,500 (Half-yearly) INR 24,750 (Quarterly) INR 8,250
Top Up Premium	INR 10,000

 

Particulars

Details

 

FAQs

1. What is the entry age for Kotak Platinum Insurance Plan?

In this Plan, the age of entry can be between 0-60 years.

2. What is the maximum age of maturity in the plan?

The maximum age of maturity in the Kotak Platinum Insurance Plan is of 60/65 years depending on the selected mode of payment. 60 years is the maximum maturity age for limited pay and 65 years is the maximum age for regular pay.

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

There are seven options of funds provided to the policyholders in Kotak Platinum Insurance Plan 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
8. What is the limit of maximum premium in the plan?

There is no limit for maximum premium in the plan.

5. What does the maturity benefit consist of?

The Maturity benefit consists of total fund value and survival units.