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returns into one. This plan from the stable of Kotak Life Insurance is a true reflection of the company's essence: innovation that will benefit the investor.
Safe Investment Plan II
What makes investing in Kotak Safe Investment Plan II truly unique is that you enjoy a Guaranteed Maturity Value on your investment, with varying degrees of equity exposure depending on your risk appetite. So, if the market value of your units is higher, you reap the benefits, with the peace of mind that whilst in a bear market your investment is under-pinned and safe by the Guaranteed Maturity Value. And there's more, the returns are totally tax-free*. Please note that in this policy, the investment risk in the investment portfolio is to be borne by the policyholder. However, Kotak Life Insurance offers you a Guaranteed Maturity Value on this plan to safeguard against the downside risk of falling markets.
Why should you invest in Kotak Safe Investment Plan II?
Kotak Safe Investment Plan II is an ideal investment option: • If you have never invested in the equity markets, for the fear of loss of capital. With Kotak Safe investment Plan II, you need not worry about losing your capital as you have the downside risk protected by way of the Guaranteed Maturity Value. If you have been an investor in debt markets, you could switch a portion of your funds to equity markets via Kotak Safe Investment Plan II. The plan offers you the potential to earn higher returns with the safety net of a Guaranteed Maturity Value. If you are an aggressive investor in equities, you could protect the downside risk in a bear market by investing a portion of your funds in the Kotak Safe Investment Plan II. What you are essentially doing is that while you enjoy equity returns, your money is protected from abysmal lows and market vagaries by way of a Guaranteed Maturity Value.
Stock market gains with your investment protected.
Fund Options The capital markets offer a spectrum of investment options. Similarly Kotak Safe Investment Plan II has an entire range of fund options: For the risk averse we have the Guaranteed Gilt Fund and for aggressive investors, we offer the Guaranteed Growth Fund. With the expertise of Kotak backing your investments, we ensure that your risk profile and investment objectives are suitably matched.
Cash & Money Market
Risk Return Profile
Aims for a high level of capital growth by holding a significant portion in equities.
40% - 80%
20% - 60%
May experience high levels of shorter term volatility (downside risk). Aims for moderate growth by holding a diversified mix of equities and fixed interest instruments.
20% - 70%
May also be susceptible to moderate levels of shorter-term volatility (downside risk). Returns will be in line with those of fixed interest instruments, and may provide little protection against unexpected inflation increases. Will preserve capital and minimize downside risk, with investment in debt and government instruments.
In the event of unfortunate death, your beneficiary would get the sum assured (less any withdrawals made during the 2 years immediately preceding death) or market value of units in the Main Account whichever is higher. Plus, if you have invested any top-up premiums, then you would get back the market value of units in the Supplementary Account. After attaining the age of 60, all the partial withdrawals made after the age of 58, will be deducted from the Death Benefit. Where the life insured is a minor, the Death Benefit during the first 5 years of the policy term or below the age of 18, will only be the greater of all premiums paid (excluding rider premiums) and the value of the units. Top-up premium Besides regular premiums, whenever you have excess money, you can invest it by way of top-up premiums, without any commitment to bring them again in the coming year (subject to a maximum of 25% of the cumulative premiums paid till that date). You can invest your surplus money across a combination of our Dynamic Funds and units bought from this amount will be held in separate Supplementary Accounts for each top-up. In the event of maturity or death, you would receive the market value of these topup units. Partial Withdrawals/ Surrender Kotak Safe Investment Plan II allows you early exit options through partial withdrawal of funds or complete surrender of the policy. With this plan, you can your access top-up amount in the investment after completion of the 3rd policy year, with no penalty charges from year 7 onwards (subject to retaining a minimum balance of one annualized basic premium). You may access your top-up Amount in the Supplementary Account for funds without any charges. The top-up premiums should complete a lock-in period of 3 years from the date of investing the top-up amount before you can access the investment. Withdrawals will be allowed only after the life insured attains the age of 18. The Guaranteed Maturity Value will be reduced to factor in the withdrawals made by you. Limited Premium Payment If you wish to pay off all premiums over a short period of time, instead of the full term, we have the Limited Premium Payment option for you. This option allows you to pay off your premiums over tenure shorter than your policy term. Under this option, you can pay off your premiums over 3, 5, 6, 7, 10 or 15 years.
Guaranteed Bond Guaranteed Floating Rate Guaranteed Gilt Guaranteed Money Market ^ 0%-100% 0%-20% Conservative 80% -100% 0%-20%
Will protect capital and not have downside risk (due to shifts in interest rates).
^Money can be parked in the Money Market Fund only in the last policy year.
Guaranteed Maturity Value Most investors who stay away from equity do so not because they do not want to earn higher equity linked returns but because they fear loss of capital. To protect their money from capital losses they invest in low return debt instruments. We, at Kotak Life Insurance, having understood this concern of our investors have developed a unique proposition of a Guaranteed Maturity Value, underpinning your investment in equity. This unique position arises from the fact that the plan offers an option to invest up to 80% in equity via the Guaranteed Growth Fund. On reaching maturity, the Company would pay out the Guaranteed Maturity Value or the market value of units, whichever is higher. Which means that when the markets are in a bull phase, you will enjoy the market linked returns delivered on your portfolio. However, in a bear market, your investment is still safe as you are sure of getting the Guaranteed Maturity Value. In a nutshell, “Bulls You Win and Bears You Win”. The Guaranteed Maturity Value applies where all premiums have been paid up-to-date at maturity and will be reduce where partial withdrawals from the Main Account have been made. On maturity, you can withdraw the entire maturity proceeds and the policy would terminate. If the need is not immediate, you can just let the amount multiply or withdraw up to 50% of the proceeds. You can also elect to draw-down on the maturity proceeds for up to five years after maturity. Death Benefit Life is uncertain and you would not want to take a chance when it comes to your loved ones. Depending on your existing life cover and the need you have, this plan allows you to choose your life cover the sum assured on death: • • High Cover: Policy Term x Annual Premium. Low Cover: Greater of (5 x Annual Premium, 0.5 x Policy Term x Annual Premium).
• In case you miss your premium payment, Automatic Cover Maintenance facility will ensure that your insurance cover is in force. This facility is available after 3 completed policy years. The facility to switch between funds has been provided to help you maximize returns from the markets. What's more, proceeds from switching between funds are tax-free*.
You may pay your premiums annually, half-yearly, quarterly or monthly (through direct debit only).
You can choose from any of the following riders: - Term / Preferred Term Benefit - Accidental Death Benefit - Permanent Disability Benefit - Critical Illness Benefit - Life Guardian Benefit - Accidental Disability Guardian Benefit Please refer to the rider brochure for details and exclusions.
Premium Allocation Charge There is an initial advice and distribution charge related to policy issue that is a percentage of the premium received. The net premium % invested in year 1 is 86% and from year 2 onwards is 96.5%. For topup premiums, the allocation will be 97.5%. Policy Administration Charge To meet the administration and support infrastructure cost, there is an administration charge recovered by liquidation of units. In the first year, the administration charge would be 7% of the annual premium, for premium up to Rs. 20,000. For portions of the premium over Rs. 20,000, the charge would be 3%. In subsequent years, for portions of premiums below and above Rs. 20,000 the charge would be 4% and 2% respectively. Fund Management Charge The fund management charge is towards managing your moneys efficiently, to earn you handsome returns and protect your downside risk. Annual Fund Management charge, adjusted in NAV is: • • • • • • Guaranteed / Dynamic Money Market Fund - 0.6% Guaranteed / Dynamic Gilt Fund - 1.0% Guaranteed / Dynamic Bond Fund - 1.2% Guaranteed / Dynamic Floating Rate Fund -1.2% Guaranteed / Dynamic Balanced Fund - 1.3% Guaranteed / Dynamic Growth Fund - 1.5%
• • • • • Enjoy unlimited upside from capital markets with a downside protection guarantee on your maturity value Flexibility in premium payment: Limited Premium Payment option and Full Term payment option Tax free* switching across fund categories Increase contribution at will by way of top-up premium Easy exit options
Section 80C, 10(10D) of the Income Tax Act,1961 would apply. Premiums paid for Critical Illness Benefit qualify for a deduction under Section 80D of the Income Tax Act,1961. You are advised to consult your tax advisor for details.
Surrender / Partial Withdrawal Charge There is no surrender allowed in the first 3 policy years. Thereafter the charge is 3% in year 4, 2% in year 5, 1% in year 6 and 0% from year 7 onwards. No surrender charges apply to the Supplementary Account. Two withdrawals a year are free (including after maturity). Thereafter Rs. 500 per withdrawal is charged. Switching Charge The first four switches in a year are free. Rs 500 will be charged for every additional switch. Mortality Charge This is the cost of life cover and will be levied by cancellation of units on a monthly basis. Miscellaneous Charges The charges for alteration in policy contract (such as change in sum assured, change in policy term, change in premium mode, etc.) are Rs. 500/-. For premium redirection a fee of Rs. 100/- will be charged. Please note, in the event of experience being worse than expected, the Company reserves its right to impose charges not beyond the level mentioned below: • The Fund Management and Administration charges may be increased in future but only if a change takes place for all the participants in that Fund and on prior written notice to the policyholder.
Entry age for the life to be insured Term Maturity Age Regular Premium Limited Premium Payment Limited Premium Payment Term Min - 0 years, Max - 65 years Min - 10 years, Max - 30 years Max - 75 years Min - Rs.10,000 annually Min - Rs. 50000 annually 3 pay for 10 year policy term 5, 6, 7 pay for 10 to 15 years policy term 10 & 15 pay for policy term of 15 years and above Min - Rs. 10,000
Top-up premiums / Partial Withdrawals
Loans : No loan facility Lapses : Where the premiums for the first three Policy Years are not paid within the grace period, the policy together with the rider benefits, shall lapse from the due date of unpaid premiums. A lapsed policy can be revived within 2 years of the date of lapse by payment of arrears of premiums with interest and collection charges. Policy Revivals : The policy may be revived within 2 years from the date of the first unpaid premium by making payment of the arrears of premiums with interest and collection charges. Any revivals after six months from the due date of unpaid premium will require production of evidence of good health.
The Annual Fund Management charges would not increase beyond 40% of the initial level. The administration charge will not be increased by more than 40% from the original level, for the first 10 years and 100% after 10 years. The surrender charge on Supplementary Account may be increased to a maximum of up to 5% of the value of units after the third policy year. The switching and withdrawal charges may be increased to a maximum of Rs. 1000.
Dubai and Mauritius. The Group services over 1.6 million customer accounts. For our customers, this joint venture translates into a company, which combines international expertise in insurance, advice and fund management with an understanding of the local market. General Exclusion: In case the life insured commits suicide during the first year of the plan, the beneficiary would receive the prevailing value of units in the Main & Supplementary Account. Prohibition of rebates: Section 41 of the Insurance Act, 1938 states:(1) No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. (2) Any person making default in complying with the provision of this section shall be punishable with fine, which may extend to five hundred rupees.
Unit Linked Life Insurance products are different from the traditional insurance products and are subject to the risk factors. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAVs of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions. Kotak Mahindra Old Mutual Life Insurance Ltd. is only the name of the Insurance Company and Kotak Safe Investment Plan II is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns. The various funds offered under this contract are the names of the funds and do not in any way indicate the quality of these plans, their future prospects and returns. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer.
Ahmedabad Aurangabad Bangalore : - Residency Road - Rajaji Nagar Baroda Bharuch Bhavnagar Bhopal Chandigarh Chennai : - Ceebros Centre - Teynapet Cochin Coimbatore Delhi : - Bhikaji Kama - Pitampura - Ambadeep - Gurgaon : 55315000-4 : 6610251-75 : 56635000 : 56628000-5 : 5575000 : 645247 : 6451056-58 : 4008800-05 : 5087000 : 42101122 : 42000100 : 2377611-14 : 5502211 : 41595000 : 45195000 : 41795000 : 4025000-30 Gandhidham Guwahati Hyderabad : - Begumpet - Secunderabad Indore Jaipur Jamnagar Jodhpur Kanpur Karnal Kolhapur Kolkata : - Chowringhee - Gariahat - Kakurgachi - Apeejay House Lucknow Ludhiana : 574903-04 : 2340672-75 : 23412929/39 : 55205000 : 4027181-5 : 2371627-30 : 5545000 : 2632901/2 : 2331184-7 : 2268671/73 : 6685000 : 22881799 : 24617711 : 23648606-09 : 22093000 : 2625770/59 : 5089643-47 Mumbai : - Head Office - Raghuvanshi - Churchgate - Andheri - Chembur Nadiad Nagpur Nashik Palanpur Pune Rajkot Surat : -Parle Point -Adajan Thane Trichy Valsad Vapi : 66635000 : 66635353 : 66541000 : 66765000 : 67995000 : 5540311-13 : 6618761-64 : 6605000-4 : 261911-2 : 66055000 : 5525000 : 5589200-3 : 5555550 : 67925000 : 4002010/55 : 645822-23 : 5545820-23
Kotak Life Insurance is a joint venture between Old Mutual plc. and Kotak Mahindra. Old Mutual plc. is a London-listed Fortune 500 international financial services group focusing on asset gathering and asset management. At 31 December 2005, Old Mutual had more than 7 million life assurance policies, 3.6 million banking customers and over 550,000 general insurance policies. Its funds under management exceeded $310 billion. The Group has a substantial presence in the UK, US and South African markets. It further expanded its European presence through the acquisition of Skandia in early 2006.
Established in 1984, the Kotak Mahindra group has long been one of India's most reputed financial organizations. Kotak Mahindra today is one of India's leading financial institutions, offering complete financial solutions that encompass every sphere of life. The group has a net worth of over Rs. 2,500 crore, employs around 6,700 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 250 cities and towns in India and offices in New York, London,
* You are advised to consult your tax advisor for details.Form No: KSIP03. Kotak Mahindra Old Mutual Life Insurance Ltd.Regn.No.: 107 Regd. Office: 6th Floor, Peninsula Chambers, Peninsula Corporate Park, Ganpatrao Kadam Marg, Lower Parel (W), Mumbai 400 013.Website: www.kotaklifeinsurance.com, Email : firstname.lastname@example.orgInsurance is the subject matter of the solicitation. This is a non-participating plan. The product brochure gives only the salient features of the plan. Please refer to the policy document for detail on all terms and conditions relating to the Kotak Safe Investment Plan II
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