"What
is the Kotak Capital Multiplier Plan?"
The Kotak Capital Multiplier Plan
is a participating plan that is built in such a
way that it allows your money to multiply, and gives
you the flexibility of using this money the way
you need it, in regular withdrawals. This is an
endowment plan, which is very flexible, and has
a lot of other in-built benefits.
"Who can avail
of this plan?"
| How old do you have
to be to avail of this plan? |
Minimum age
- 18 years
Maximum age - 60 years |
 |
For what term can
you choose to pay the premiums
(called the Build-up Period)? |
5 yrs - 30 yrs |
|
From what age can
you choose to start making withdrawals
(called the Vesting Age)? |
Any age upto
65 yrs |
|
| What is the minimum premium that
you need to pay and at what intervals can
you pay them? |
| Mode |
Amount |
| Quarterly |
Rs.2620 |
| Half Yearly |
Rs.5115 |
| Annually |
Rs.10000 |
|
|
"What are the advantages of this plan?"
- You can choose to start making withdrawals
from the vesting age, subject to a maximum of
65 yrs.
- At the start of your withdrawal period, you
can draw the full proceeds; or you can draw
upto 50%, of your Basic Sum Assured or Accumulation
Account*, whichever is higher.
- In the event that you draw the full proceeds,
your policy terminates.
- In the event that you do not draw full proceeds,
then you can make one or more withdrawals yearly
(that can alter year to year, as per your needs),
total of which will be between 0% to 25% of
the Net Vesting Value**, subject to the rules
applicable at the vesting age. These withdrawals
can be made for a maximum period of 15 years
after maturity.
- You have the choice to opt for an early vesting
at any age before the scheduled vesting age
(subject to at least 3 years' premiums having
been paid), if need arises. If the early vesting
is due to medical grounds, then the minimum
condition of 3 yrs is also waived.
- In addition to the regular premiums, you can
make lump-sum injections into your plan during
the premium-paying period, as and when you want
(such lump-sum injections during a year may
not exceed 25% of the Basic Sum Assured). A
Supplementary Accumulation Account will be created
for this, and will be combined with the Accumulation
Account at the chosen vesting age.
- You have the facility of Automatic Cover Maintenance,
which ensures that the policy remains in force
even when you miss the premium payments. This
facility is available after the first 3 years
of the term.
- You have the option of paying premiums from
the Supplementary Accumulation Account, created
for "lump-sum injections", if the
need arises.
- During the build-up period, you get an additional
life cover of 10% of the Basic Sum Assured,
which is over and above the life cover you have
opted for.
- During the withdrawal period, you get life
cover of 10% of the Basic Sum Assured, and the
Critical Illness Benefit (CI+15), if opted for.
This is available for a period of 15 years from
your vesting age or till you turn 75, whichever
is earlier.
- During the withdrawal period, returns will
continue to be added to the Accumulation Account.
Such returns cannot be negative.
- You have the option of paying premiums in
quarterly, half-yearly or yearly installments.
- You have the benefit of a 15-day free look
period.
*Accumulation Account
is your personal account in which the premiums
that you pay are deposited, the returns declared
every year are added and risk and expense charges
are deducted.
**Net Vesting Value is the Basic Sum Assured or
Accumulation Account; whichever is greater after
deducting the withdrawal made on the vesting age.
"What value-adds can
you opt for?"
You may avail of these value-adds for a nominal
premium at the time of taking the policy, subject
to aggregate premium on the value-adds not exceeding
30% of the basic premium for the policy.
Term/ Preferred Term Benefit:
In the event of death during the term of this
benefit, the beneficiary would receive an additional
Death Benefit amount, which is over and above
the Sum Assured. The maximum amount of benefit
you can avail is equal to the Basic Sum Assured.
Where the Term Benefit cover applied for is more
than Rs.10 lakhs, better rates may apply, subject
to meeting eligibility requirements.
Accidental Death Benefit: In
the event of death as a result of an accident
during the term of this benefit, your beneficiary/
nominee will receive an additional Death Benefit
amount, which is over and above the basic benefit.
The maximum Accidental Death Benefit you can avail
of is equal to the Basic Sum Assured (subject
to an overall limit of Rs. 10 lakhs).
Critical Illness Benefit (CI+15): The
maximum Critical Illness Benefit Sum Assured you
can avail of is equal to the Basic Sum Assured
(subject to a limit of Rs.20 lakhs).
(i) In case of the first occurrence
of a critical illness during the build-up period,
an advance payment of 110% of the Critical Illness
Benefit Sum Assured will be added to your Supplementary
Accumulation Account, and will be available from
your chosen vesting age. On the addition of this
benefit to the Supplementary Accumulation Account,
the Basic Sum Assured would reduce by the Critical
Illness Benefit Sum Assured, the Accumulation
Account would reduce proportionately, and the
Critical Illness Benefit would cease. The future
premiums for the plan (if applicable) would be
recalculated based on the reduced Basic Sum Assured.
(ii) In case of the first occurrence of
critical illness during the withdrawal period,
an advance payment equal to 10% of the Critical
Illness Benefit Sum Assured will be added to your
Accumulation Account. On the addition of this
benefit to the Accumulation Account, the Basic
Sum Assured would reduce by the Critical Illness
Benefit Sum Assured, and the Critical Illness
Benefit would cease.
(Please contact
our Life Advisor for a list of Critical Illnesses)
Permanent Disability Benefit: If you meet with an accident during the term
of this benefit, and are permanently disabled, you would be entitled to an
additional amount, which is over and above the basic benefit. This amount is
added to your Supplementary Accumulation Account and will be available from
your chosen vesting age. The maximum Permanent Disability Benefit available
is equal to the Basic Sum Assured (subject to a maximum of Rs.10 lakhs).
Permanent Disability is
defined as permanent and immediate inability to
work or permanent loss of use of two limbs or total
and permanent loss of sight.
Life Guardian Benefit:
In case of the unfortunate death of the proposer,
this benefit keeps the policy alive by waiving
all future premiums on the policy. This is available
only where the proposer and the life insured are
two different individuals.
Accidental Disability
Guardian Benefit: In case the proposer
is permanently disabled as a result of an accident,
this benefit keeps the policy alive by waiving
all future premiums on the policy. This is available
even if the proposer is also the life insured.
"Are there any Tax
Benefits?"
Section 80C, 10(10D) of Income Tax Act would
apply. Premiums paid for Critical Illness Benefit
qualify for benefits under Section 80D. These benefits
are as per the currently prevailing tax regulations
and you are advised to consult your tax advisor
for details.
*Please consult
your tax advisor for details.
"What happens in the event of the death of
the life insured during the build up period?"
The beneficiary will receive greater
of:
(i) Basic Sum Assured
less all the premiums due but not paid, or
(ii) Accumulation
Account,
Plus,
(i) An additional amount
of 10% of the Basic Sum Assured, and
(ii) The balance in the
Supplementary Accumulation Account.
"What happens in
the event of death of the life insured during
the withdrawal period?"
The beneficiary will receive the following:
(i) 10% of the Basic Sum Assured, and
(ii) The balance in the Accumulation Account (into
which the Supplementary Accumulation Account has
been added).
"How does this plan
work?"
Mr. Mehta is a 35-year-old man who takes the Kotak
Capital Multiplier Plan with a Basic Sum Assured
of Rs.10 lakhs. He opts for the Accidental Death
Benefit value-add. He wants to take his withdrawals
from the age of 55 years. He chooses to pay his
premiums annually. His total annual premium will
be as follows:
| Kotak Capital
Multiplier Plan premium |
43,993 |
|
| Accidental Death
Benefit premium |
882 |
|
| Total premium |
44,875 |
|
(a)
(i) How big is Mr.
Mehta's fund at the end of the premium paying
term?
The amount available to Mr. Mehta at age 55 will
be Rs. 10 lakhs plus bonus additions. Assuming
that the Accumulation Account grows at 6% p.a,
this amount will be equal to Rs.13,95,400. If
the Accumulation Account grows at 10% p.a, this
amount will be equal to Rs.22,27,100.
(ii) What are the withdrawal
options Mr. Mehta avails of?
Assuming that the Accumulation Account at age
55 is equal to Rs.14,02,200, Mr. Mehta withdraws
Rs.1,40,000 (i.e. 10% of amount in his Accumulation
Account) immediately on his vesting age. Of the
balance, he takes yearly withdrawals of Rs.75,000
(7.5% of the Basic Sum Assured of Rs.10 lakhs)
in the middle of each year for the next 15 years.
Supposing, that the return on the Accumulation
Account continues at 6%p.a., for the 15 years
of the withdrawal period, a final benefit of Rs.11,82,700
will be available to Mr. Mehta when he is 70.
Assuming that the Accumulation Account at age
55 is equal to Rs.22,37,000, Mr. Mehta withdraws
Rs.2,24,000 (i.e. 10% of amount in his Accumulation
Account) immediately on his vesting age.
Of the balance, he takes yearly withdrawals of
Rs.1,50,000 (15% of the Basic Sum Assured of Rs.
10 lakhs) in the middle of each year for the next
15 years.
Supposing, that the return on the Accumulation
Account continues at 10% p.a., for the 15 years
of the withdrawal period, a final benefit of Rs.33,51,800
will be available to Mr. Mehta when he is 70.
(b) What does Mr.
Mehta's beneficiary receive in the event of the
unfortunate death of Mr. Mehta :
(i) During the build up period?
Mr. Mehta's beneficiary will receive the greater
of Rs.10 lakhs and the balance in his Accumulation
Account. Supposing he dies at the end of the 15th
year, his beneficiary will receive Rs. 10,00,000,
assuming that his Accumulation Account grew at
6%, or Rs.12,20,500, if it grew at 10%. Also,
he/she will get an additional Rs.1,00,000 (10%
of Basic Sum Assured as additional life cover).
In the event that Mr. Mehta's dies due to an accident,
his beneficiary will get an additional Accidental
Death Benefit of Rs.10 lakhs as Mr. Mehta has
paid a minimal premium of Rs. 882 p.a towards
the benefit.
(ii) During the withdrawal period?
Mr. Mehta's beneficiary will receive the balance
in his Accumulation Account. He/she will receive
an additional Rs.1,00,000 over and above this
balance, as life cover of 10% of Basic Sum Assured
is still available.
In the illustration,
some benefits are guaranteed and some are variable.
Guaranteed Returns are marked "guaranteed" in
the illustration. Variable returns are shown at
two different rates of assumed future returns.
These assumed rates of return are not guaranteed
and they are not the upper or lower limits of
what you might get back .The actual return may
be different depending on a number of factors
including future investment performance.
"What do you do next?"
To find out more about this plan, you
can call us at any Kotak
Life Insurance Branch Offices or send
us an e-mail at lifeexpert@kotak.com
"General Exclusion."
In case the life insured commits suicide within
1 (one) year of the plan, no benefits outlined
in the plan would be payable.
Exclusions
for Accidental Death Benefit and Permanent Disability
Benefit:
The Accidental Death Benefit, Permanent Disability
Benefit, Critical Illness Benefit & Kotak
Accidental Disability Guardian Benefit would not
be paid out in the following circumstances:
(a) Self inflicted injuries, suicide, insanity,
immorality, committing any breach of law or being
under the influence of drugs, liquor etc.
(b) When the life insured is engaged in aviation
or aeronautics other than as a passenger on a
licensed commercial aircraft operating on a scheduled
route.
(c) Due to injuries from war (whether war is declared
or not), invasion, hunting, mountaineering, motor
racing of any kind, other dangerous hobbies or
activities, or having been on duty in military,
para-military, security or police organization.
Additional Exclusions for
Critical Illness:
(a) Unreasonable failure to seek or follow medical
advice.
(b) Any pre-existing medical condition not disclosed
at inception.
(c)Infection with Human Immunodeficiency Virus
(HIV) or condition due to Acquired Immune Deficiency
Syndrome (AIDS).
In addition, no benefit would be paid in respect
of the exclusions specific to each critical illness.
"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.
Form No.: KCMP01 |
