Kotak Invest Maxima Plan
- Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
- Convenient payment options - annual, half-yearly, quarterly or monthly premium payments
- Do more with plans that offer pure protection, retirement planning and investment options
Kotak Mahindra is amongst the top general insurance providers in India and has a range of insurance plans in the offering. From Unit Linked Plans to Term Plans, Guaranteed Plans, Retirement Plans and Pension Plans, Kotak has a diverse insurance offering that is built to offer flexibility and suit individual customer requirements.
The Invest Maxima Insurance Plan is a Unit Linked Insurance Plan offered by Kotak Mahindra and comes with a range of benefits and features. Unit Linked Plans are known to offer insurance options as well as investment options. As a matter of fact, Unit Linked Insurance Plans have become extremely popular among Indians as they offer the ideal returns over a long term period.
The Invest Maxima Plan, being a Unit Linked Insurance Plan, offers customers the advantage of both investment and insurance. Let us look at the various benefits that you can receive by purchasing the Invest Maxima Unit Linked Insurance Plan from Kotak. We also look at the premiums, policy term, eligibility features, etc.
Eligibility - Who is the Kotak Invest Maxima Unit Linked Insurance Plan for?
In order to be eligible for the plan, the following criteria need to be met:
| Component | Eligibility and available options |
| Entry Age | 0 years to 65 years |
| Maturity age of policy | 10 years to 75 years |
| Policy Term | Regular and Limited Premiums: 10 years, 15 years, 20 years, 25 years and 30 years. Single Premium: 10 years |
| Premium payment options | Annual premiums or Single premiums |
Sum Assured and Premium Range - What you get and what it costs?
The premium details and sum assured are mentioned below. They depend on the policy term and the type of premium chosen by the customer.
| Premium Type | Amount |
| Regular Premium | Rs. 50,000 – Rs. 1,00,000 |
| Limited Premium | Rs. 75,000 – Rs. 1,00,000 |
| Single Premium | Rs. 1,00,000 – Rs. 2,50,000 |
| Premium Type | Age | Amount |
| Regular Premium/Limited Premium | &360;45 years of age | Higher of (10 X AP) or (0.5 X Policy Term X AP) |
| Regular Premium/Limited Premium | &362;45 years of age | Higher of (7 X AP) or (0.25 X Policy Term X AP) |
| Single Premium | Age is no barrier | Option 1: 5 times the Single Premium Option 2: 1.5 times the Single Premium |
*Premiums vary based on age, location, plan term and other factors.
Plan Coverage: What the Kotak Invest Maxima Unit Linked Insurance Plan covers?
| Maturity Benefit | The Kotak Invest Maxima plan provides the policyholder with maturity benefits, at the end of the policy term. The Maturity benefit is equivalent to the amounts in both the Main account as well as the Top-up Account. The plan will provide the policyholder with survival units once every 5 years, after the policy has completed 10 years. Survival units are basically 1% or 2% of the Single or Annual Premium. |
| Surrender Benefit | There is no surrender benefit offered as such, and the policyholder isn’t allowed to make withdrawals within the first five years of the policy period. This is true in the case of most Unit Linked Insurance Plans. The policyholder will only be able to partially withdraw the amount in his funds after the policy has completed five years. Surrender or discontinuance of the policy will entail benefits after a period of 5 years. Surrender of the policy before the 5-year period will entail benefits after the completion of 5 years of the policy. |
| Death Benefit | The policyholder will receive a death benefit in the event of his/her unfortunate demise. The amount will be paid to the policyholder’s nominee. The death benefit under the policy will be higher than:
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Exclusions - What the Kotak Invest Maxima Unit Linked Insurance Plan doesn’t cover?
All benefits under the policy will not hold valid in the event of the policyholder’s death by suicide. If the unfortunate death occurs within the period of the policy term, only the fund value will be paid-out. The sum assured and other benefits under the policy will cease to become applicable.
Other Key Features covered under the Kotak Invest Maxima Insurance Plan:
| Freelook Period | The potential policyholder will be offered a Freelook period for 15 days after the purchase of the policy through all channels (with the exception of purchasing the policy from a Distant Marketing Channel, which allows for a freelook period of 30 days). The policyholder can discontinue the policy within the freelook period if he/she isn’t satisfied with the terms of the policy. |
| Grace Period made available to the policyholder | The policyholder will be provided with a Grace Period of 30 days from the premium payment due date. If the premium payment isn’t made before the due date, the policyholder will get the opportunity to revive the policy within a two year period. The policyholder will receive a notice within 15 days from the premium due date (in case the payment has been missed) and will have 30 days to respond. |
| Flexible settlement options available under the policy | After the end of the policy term, the policyholder can either choose to receive a lump sum payment or in the form of regular instalments for a set period of time. |
| Discontinuance of policy | Similar to other Unit Linked Insurance Plans, the Kotak Invest Maxima Plan comes with a lock-in period(minimum) of 5 years. The policy can be discontinued after the five year period. In case the premium isn’t paid before the grace period, the policyholder will be served with a notice, following which the policyholder will be required to make the payment within the next 30 days. The policyholder will have the following options available to him/her:
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Tax Benefits offered by the Kotak Invest Maxima Unit Linked Insurance Plan:
The Kotak Invest Maxima offers the following tax benefits on premium payments and maturity proceeds:
- Under Section 80C, you are eligible to receive tax benefits on your Premium payments.
- Under Section 10 of the Indian Income Tax Act (Section 10D), your maturity proceeds and death benefits will be given tax breathers.
Other Benefits – How you can save with the Kotak Invest Maxima Insurance Plan?
The unit Linked Plan offered by Kotak Life Insurance comes loaded with several features. Let us take a look at the most prominent features of the Unit Linked Insurance policy offered by Kotak Mahindra:
- The Unit Linked Insurance Plan provides you with both insurance options as well as investment options. The plan is ideal if you wish to gain long-term financial benefits.
- You have the option of choosing what type of fund you wish to invest in. Kotak provides you with two portfolio options to help you make substantial gains through portfolio investments, helping you to generate impressive returns and save big.
- The two types of portfolio options available to you are: The Systematic Switching Strategy and the Self Managed Portfolio Strategy.
- The Systematic Switching Strategy provides you with the opportunity to make investments in the equity market. The equity market is volatile, no doubt, but the plan enables you to approach investments in a systematic manner. The plan allows you to make investments in a certain Money Market Fund. You can then transfer your money on a monthly basis to either a Frontline Equity Fund or a Classic Opportunities Fund.
- The Self Managed Portfolio Strategy on the other hand provides you with 5 fund options – all these 5 options are provided to you by Kotak. As a Self Managed fund, you will be required to manage your own investments and funds can range from high return, high risk options to low risk, long term options.
- During the final year of the policy, you can choose another portfolio strategy provided to you – the Systematic Exit Strategy. You can move your money across funds through the Systematic Exit Strategy.
Why should you buy the Invest Maxima Plan from Kotak?
The Kotak Maxima Plan comes with a range of benefits that make it perhaps the ideal investment cum insurance plan. Here’s why:
- Being a Unit Linked Insurance Plan, the Kotak Invest Maxima offers solid investment options to enable higher returns in the long run.
- The plan also offers you with tax benefits under certain Sections of the Income Tax Act.
- The plan is associated with death benefits and maturity benefits. An amount equivalent to the sum assured will be paid to the policyholder’s nominee in the event of the untimely and unfortunate death of the policyholder.
- You can partially withdraw the money from the investment corpus after a period of 5 years. So basically, with a five-year lock-in period, you can accumulate a large chunk of money that you can use for other financial commitments.
- Last but not the least, the Kotak Maxima Investment plan is the ideal plan if you wish to take care of long term financial commitments. This includes funds for your retirement, children’s education or medical expenses.
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