Benefits

Guaranteed Maturity | Systematic Investments | Rupee Cost Averaging |Tax Benefits | Easy Withdrawals | Easy Top-ups | Flexible Premiums | Flexible Life Insurance

Guaranteed Maturity Value is Kotak’s answer to protecting your investments. Unlike other ULIPs (Unit-linked insurance plans), this plan assures guaranteed amount on maturity*.

This means that no matter what happens, you will get an assured value on maturity.

Systematic investment is the process of investing small amounts of money regularly over a long period of time. There are several benefits to investing this way:

• Small savings in a disciplined manner don’t hurt your pocket as opposed to investing a large sum.
• You don’t have to wait to accumulate money to start investing.
• High growth through the Rupee Cost Averaging.

It is not possible to time the market for investment. By investing systematically, you get the benefit of buying more units when the markets are low and lesser units when the markets are high. So that, both these average each other out. This way, you make money regardless of the market conditions.

Tax benefits under Section 80C, 10(10D) of Income Tax Act, 1961 would apply. Tax benefits are subject to change in tax laws. You are advised to consult your tax advisor for details.

At any point of time after completion of three policy years and payment of three full years’ premium, if you are in need of money, Kotak Safe Investment Plan II gives you the flexibility & liquidity to withdraw your money. Till the 6th year of your policy, there is a nominal partial withdrawal charge that is levied on these withdrawals, but if you make these partial withdrawals after completion of the 6th year of your policy, these are free (subject to retaining a minimum balance of one annualized basic premium).

In case you have made top up payments, the partial withdrawals should be made from these Top up Accounts before accessing the main account. However, the money in the top up account has a lock-in of 3 years before any such withdrawals can be made (barring top ups made in the last 3 years of the policy term).

In case the partial withdrawals have been made from the main account, the benefit of Guaranteed Maturity Value ceases to apply.

KSIP II offers you the flexibility to invest additional surplus money by way of top up premiums at any point during the term of the plan without any commitment to bring them again in the coming year. This however is subject to a maximum of 25% of the cumulative premiums paid till that date. You can invest this money in your choice of funds.

The units bought from this top-up amount are held in separate top-up accounts for each top-up. In the event of maturity or death, you would receive the value of these top-up units.

KSIP II offers you the flexibility of paying premiums as per your convenience. You can either choose to pay it for a limited term only (Limited Premium Payment Term) or throughout the term of the policy (Regular Payment Term).

Since these payments are made regularly in a disciplined manner for the term that you choose, you automatically get the benefit of a Systematic Investment plan where you invest a small amount regularly over a longer period of time. Not only does this take off your pressure of bulk payment, but also you benefit from rupee cost averaging.

KSIP II gives you the benefit of choosing the amount of insurance depending on your need. It gives you the option to choose a high cover or a low cover.

• Death benefit: Sum assured or market value of the units which ever is higher
• Maturity benefit: Market value of units or Guaranteed Maturity Value, whichever is higher

*Guaranteed Maturity Value is calculated as the net premiums allocated to the Main Account rolled up at 2.75% and is payable only on maturity if all the due premiums are paid on time and no partial withdrawals are made from the Main Account.

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