Kotak Safe Investment Plan is an investment cum insurance plan, where we invest your money in capital markets and you get market-linked returns. All gains from the markets are yours to take and in case the markets do not perform well, you would still get back the guaranteed Sum Assured. Sounds interesting. Read on.

"What is Kotak Safe Investment Plan?"
This plan is an opportunity to invest in the capital markets and make market linked returns. The plan assures you of a minimum guaranteed amount in case of death or on maturity. Thus, while it invests your money in capital markets, and gives you an opportunity to make high returns, it protects your downside. What’s more, these returns are tax-free to you.

The premiums paid, net of charges, are converted into units and invested in funds selected by you. This plan offers you a choice of four professionally managed funds to invest your money. This is a non-participating (without profits) plan.

Money Market Fund - The portfolio will consist of money market investments such as treasury bills, commercial paper, certificates of deposit, short-term deposits, bills of exchange, debentures, bonds and Government securities etc.

Minimum Maximum Investment in Government / Government guaranteed securities 80% 100% Short term Investments such as money market instruments, short term bank deposits, call money and cash 0% 20%

Minimum Maximum Investment in listed equity shares 30% 60% Investment in Government / Government guaranteed securities and other debt securities and infrastructure assets 20% 70% Short term Investments such as money market instruments, short term bank deposits, call money and cash 0% 20%

Minimum Maximum Investment in equity shares / equity related instruments 40% 80% Investment in Government / Government guaranteed securities and other debt securities and infrastructure assets 20% 60% Short term Investments such as money market instruments, short term bank deposits, call money and cash 0% 20%

How old do you have to be to avail of this plan?	Minimum age - 18 years Maximum age - 65 years
For what term can you avail of this plan?	10 yrs - 30 yrs
At what intervals can I pay the premium?	Quarterly Half yearly Yearly

"What are advantages offered by Kotak Safe Investment Plan?"

• You have the flexibility to choose from four well-managed investment funds namely Money Market/ Gilt/ Balanced/ Growth, based on your appetite for risk and commensurate returns.
• At any point in time, you have complete flexibility to switch your moneys (or a part of it) from one fund to the other. The switching between funds is a simple process of filling in a “Switch Form” and sending it to our sales office.
• You may switch your funds any number of times during the term of the plan, at daily declared selling and buying prices NAVs (Net Asset Value).
• You can monitor the daily performance of the fund on our website www.kotaklifeinsurance.com.
• In case you miss your premium payments after the first 3 years, the Automatic Cover Maintenance facility would ensure that the policy remain in force.
  The units, from your holdings, would be sold at the prevailing selling price to meet the risk and expense charges, so that your policy continues to remain in force. As long as the value of units is sufficient to meet the expenses, the policy would be in force. On maturity, the residual value of units would be paid as a benefit to the policyholder.
• Loan facility available after the policy has been in force for 3 years.
• 15 day free-look period.

"How does this plan work?"
The premiums paid by you will be invested in the fund of your choice after deducting certain administration and other expenses. (Please refer to the section on charges). Entry into a plan would be based on the buying price as on that date.

Buying price is the price at which you enter a fund, based on the market value per unit, increased by the relevant trading costs associated with buying the assets.

During the term of the plan, your financial requirements could change. And you may want switch between funds. Your units in the fund would be sold at the selling price and other units bought at the buying price as per your instructions.

Selling price is the price at which you can sell units, based on the market value per unit, less the relevant trading costs associated with selling the assets.

"What do I receive on maturity of the plan?"
On maturity, you would receive either the Sum Assured or the market value of the units, whichever is higher.


"What happens in the event of death of the life insured?"
In the unfortunate event of death of the life insured, the beneficiary would receive either the Sum Assured or the market value of the units, whichever is higher.


“What if I want to exit the plan before the maturity date?”
You may exit the plan any time after 3 years. The amount paid out would be the market value of units less a surrender charge of 2.5%. After year 10, you may exit the plan at anytime without any surrender charge. The amount paid then would be the full market value of units.


"What value-adds can you opt for?"
You may avail of the following value-adds for a nominal premium at the time of taking the plan. The aggregate premium on all value-adds should not exceed 30% of the basic Kotak Safe Investment Plan premium.

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: This benefit provides an additional amount (over and above the sum assured) to the beneficiary in the event accidental death of the life insured. The maximum cover available under this benefit is equal to the basic sum assured (subject to a maximum of Rs.10 lakhs).

Permanent Disability Benefit: This benefit can be added to the basic life insurance plan to provide financial support in case of permanent disability due to an accident. The amount payable under this benefit would be paid out as an annuity. The maximum Permanent Disability Benefit that you can avail of is equal to the basic sum assured (subject to a maximum of Rs.10 lakhs).

Critical Illness Benefit: This benefit can be added to the basic life insurance plan to provide financial support in the event of medical emergencies. On the first occurrence of critical illness during the term of the plan, you would receive a portion of the sum assured to reduce your financial burden in this emergency. The maximum Critical Illness Benefit that you can avail of is equal to half the basic sum assured (subject to a maximum of Rs.20 lakhs).

(Please contact our Life Advisor for the list of critical illnesses).

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.

Accidental Disability Guardian Benefit: In case the proposer is permanently disabled as a result of accident, this benefit keeps the policy alive by waiving all future premiums on the policy.


"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 are the charges applicable?"

• Sales related and other expenses in the first year would be 14%. In subsequent years, the expenses would be 3.5%.
• Underwriting charges as applicable.
• Mortality charges and administration charges as applicable.
• Annual Fund Management charges as follows:
  Money market - 0.6%, Gilt Fund - 1.0%, Balanced Fund - 1.3%, Growth fund - 1.5%
  
  (To know more on charges, please refer to the sheet "Details on Charges").

"An Illustration"
Jay Solanki, who is 30 years old, wants a product that gives him market linked returns as well as a life cover. He, therefore, decides to buy the Kotak Safe Investment Plan for a period of 10 years. He wants to invest Rs.50,000 per year in the plan. He chooses to put all his money in the Balanced funds.
Based on this amount of investment*, Jay’s sum assured works out to be Rs.532,000.

* Actual premium amount is Rs.50,032 p.a.

What would Jay receive on maturity of the plan?
On maturity, Jay would receive the sum assured of Rs.5,32,000 or the market value of the units whichever is higher.

Assuming the growth rate in the market value of the units to be 6%, Jay would receive, Rs. 5,86,600. At a growth rate of 10%, the maturity value would be 7,31,500.

What happens in the event of death in the 9th year?
In case of Jay’s unfortunate death at the end of 9th year, his beneficiaries would receive the Sum Assured of Rs.532,000 or the market value of units whichever is higher. Assuming the growth rate in the market value of the units to be 6% p.a., the value of units at the end of year 9 would be 514,100. The sum assured is Rs.532,000. Hence, the beneficiaries would get Rs.532,000.

Assuming a growth rate of 10% p.a., the value of units at the end of year 9 would be 6,27,100. The sum assured is Rs.532,000. Hence, the beneficiaries would get Rs 6,27,100.


"What do you do next?"
To find out more about our plans, you can call us at any of our branch offices or e-mail us 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, Permanent Disability Benefit, Critical Illness Benefit, and Accidental Disability Guardian Benefit:

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/ proposer 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 Benefit:
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 any Acquired Immune Deficiency Syndrome (AIDS)

In addition, no benefit would be paid in respect of the exclusions specific to each critical illness. (Please contact our life advisor for the list of critical illnesses).

No claim under the Life Guardian Benefit would be admitted in the following circumstances:

• If, within one year of the date of issue of this policy, the proposer commits suicide, whether being sane or insane at the time of committing suicide.

 

"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.:KSIP01

** Conditions Apply. No exit load after Year 10