Life is uncertain – but it is not worth spending time wondering about what could be in store. Kotak Life Insurance offers you a range of Savings & Investment Plans that make sure your money does all the hard work, so that you get the opportunity to celebrate and live life to the fullest.
Financial security
Assurance of savings
Benefits of investments
Emotional wellbeing
Understanding Savings and Investment Plans
The first step towards understanding savings and investment plans is to realize the difference between savings and investments.
Saving: It means keeping a part of your income aside for future needs.
Investment: It involves building wealth or making your savings grow.
A savings and investment plan is an insurance policy that plays both roles. It allows you to accumulate funds systematically over time and promote disciplined investment. Such plans also provide multiple avenues to build a corpus. You can choose from guaranteed or market-linked instruments as investment tools. At maturity, you receive the maturity value as the return on your investment. The proceeds help finance your future goals like children’s education, marriage, and amassing retirement funds.
Besides, if an unfortunate event occurs during the tenure of the policy, your nominee receives payouts. Therefore, the life insurance component safeguards your family against economic hardships in your absence. Thus, such a plan combines the benefits of life insurance with savings.
Moreover, all savings schemes in India are eligible for tax benefits as well.
The best savings plans in the insurance industry offer various features that cater to individual financial needs. The different types of investment plans available in the Indian insurance sector include:
Participating Endowment Plans that assure a guaranteed maturity benefit along with bonuses.
Unit linked insurance plans (ULIP) that do not offer any fixed maturity amount. Your returns depend on the market performance of the funds in which you choose to invest. You can elect to allocate your premiums in debt or equity-based on your risk tolerance. With investments in the capital market, such plans bring the potential of substantial yields.
Guaranteed return plans invest in fixed income securities and are thus risk-free investment insurance.Growth of money is assured with no stress of market performance.
Money-back plans pay parts of the maturity benefits at pre-defined intervals. The remaining amount, along with bonuses, is paid at maturity. Thus, such policies can meet short-term liquidity needs.
Income plans provide monthly or yearly incomes while your capital keeps growing with bonus additions.
Why Should You Buy Savings and Investment Plans?
From luxury expenses like foreign holidays to necessary expenditures like children’s higher education, the need for funds are many. Effective arrangement for such funds necessitates planned investments. However, you may have to spend a large portion of your income on basic amenities and immediate needs. It may leave a very little surplus for future requirements. Therefore, financial experts advise that before you consume your entire salary on day-to-day expenses, you should set aside a sum for the future.
The problem arises when the amount that you can save regularly is small in comparison to the funds that you may need later. Herein lays the need for wealth building, which grows the money you put aside.A money-saving plan helps in increasing your savings over time so that enough capital accumulates when the need for funds arises. Here’s a look at reasons for buying such plans.
Savings for long-term financial goals
The longer you stay invested, the higher your wealth accumulates. Thus, a savings scheme can be the ideal tool to attain financial independence and meet every monetary requirement in life.
Security for family’s financial future
The life insurance element in the savings plans protects your loved ones against a financial crisis if you face any unwanted situation. The payouts act as replacements of your income when your earnings can no longer provide their living costs
Tax benefits
The premiums that you pay towards your savings and investment plan are tax-deductible under Section 80C of the 1961 Income Tax Act (ITA). The returns, both maturity benefits and death benefits, are also tax-exempt under the conditions of Section 10(10D) of the ITA.
Lucrative returns with capital market investments and the power of compounding
Investment plans, particularly the market-linked ones like ULIP, offer the prospect of considerable profits. You can monitor your funds and switch among different asset classes. Thus, you can optimize your earnings and generate substantial returns. Moreover, with profits, investments like endowment policies increase in worth due to the compound effect of bonuses. Thus, the compounding of revenues, along with long-term savings, can fetch a sizeable profit.
The discipline of periodic savings
Since many such plans come with lock-in periods, these build the habit of saving without liquidating funds. It helps in the growth of funds without depleting savings and eases the strain of financial liabilities later in life.
Flexibility and liquidity
A money-savings plan provides features like
switching between invested funds as per risk appetite
partial withdrawal of funds
liquidity in the form of loans against the policy
multiple modes of premium payment according to your financial schedule
Also, you can choose from guaranteed or market-linked options in line with your investment needs.
Effective defence from inflation
Systematic investments in the money market over a long period give your capital the time to stabilize and grow. Thus, you can assemble sufficient corpus that can shield you against inflation.
Here are some Savings and Investment Plans for Your Family
What are the features of Kotak Life savings and investment plans?
Savings and growth
If you are in search of a stable monetary foundation for your future regardless of your current financial condition, these plans provide the perfect means.
Guaranteed payout
Most plans other than the market-linked varieties offer guaranteed sum assured.
Death benefits
These policies being life insurance plans offer payouts to your beneficiary in case of any eventuality. Such payments are usually independent of any previous payouts of bonuses.
Liquidity
You can avail of partial withdrawals on your funds or apply for loans against your policy.
Guaranteed income
Many plans guarantee extra annual revenues after the completion of the premium payment term
Increase in income
Some income plans offer income boosts and enhance the yearly proceeds during the payout phase.
Bonuses
Most plans offer yearly vested bonuses along with terminal bonuses at maturity.
Special rates
Women and investors who opt for higher premium amounts can enjoy enhanced sum assured.
Loyalty additions
Many participating plans offer financial rewards as loyalty additions on long-term investments, increasing the profits. Some ULIPs provide survival units in-lieu of such bonuses.
Minimal premium allocation charges
Some of the ULIPs provide zero or negligible fees for premium allotments, increasing the returns.
Limited pay option
Several plans offer the advantage of limited premium payment terms.
One-time investment options
Some plans offer the benefit of one-time expense through a single premium facility.
Freedom to switch funds
In ULIPs, you can shift your money over the different fund types based on the market outlook.
Top-up option
Some ULIPs provide the chance to purchase additional units with extra payments over the standard premium.
Multiple investment strategies
Choice of three portfolio strategies, age-based, self-managed, and systematic switching, align with your unique investment needs.
Money-back options
Several plans provide money-back opportunities for meeting interim needs for funds.
Discounts
If you choose a high sum assured, you can get discounts on the premium with some plans.
Unique plans for low-income groups
Specific plans offer low premiums and guaranteed payouts to benefit consumers with limited income.
Choice of payout options
A few of these plans provide the opportunity to take out accrued bonuses as cash payments or to let them accumulate until maturity.
What are the Benefits of Kotak Life Savings and Investment Plans?
Kotak Life enables you to personalize the protection as per your individual needs through riders. Some examples of such riders include:
Protection
Security for your family against financial crisis is the primary benefit of these policies. Some of these plans also guarantee returns on your investment, thereby protecting your capital.
Variety
Kotak offers a considerable assortment of savings and investment plans to cater to every financial need. You can select the one that best suits your age, budget, and long-term needs.
Cost-effective
The non-linked participating policies offer life insurance at low premiums. Thus, you can buy appropriate coverage at an affordable price without compromising with your current lifestyle.
Wealth enhancement
Kotak pays you guaranteed dividends on participating life insurance plans. Some plans accrue bonuses that increase your returns.
Customization
You can augment your coverage with multiple riders and personalize your policy per your individual needs.
Term rider provides additional payouts over and above the death benefit on the base plan.
Accidental death benefit rider offers extra payouts in case of accidents.
Permanent disability benefit rider offers 120% of the rider sum assured over five years if a permanent disability due to an accident occurs.
Guardian benefit riders waive off future premiums on death or total disability of the policyholder.
Multiple premium payment terms
You can choose from monthly, half-yearly, quarterly, and annual modes per your budget restraints. Single premium and limited payment options are also available.
Variable asset types for flexible investments
For unit-linked products, you can select from 6 fund types based on your enthusiasm for financial risks:
Aggressive growth fund
Bond fund
Balanced fund
Growth fund
Gilt fund
Floating rate fund
You can switch your money across the funds in any proportion you prefer.
Minimal charges
The premium allocation costs are absent or low. Thus, the bulk of your money goes into your investments, generating extensive returns.
Choice of annuity options
You can claim your maturity benefits as a lump sum settlement or as regular income, paid annually or monthly.
Convenience
You can choose from different policy durations according to your financial plans.
Ease of paying premiums
You can pay your premiums and renew your policy online, without having to wait in queues and wasting time.
Tax benefits
All the policies fall under the purview of Section 80C and Section 10(10D) of the ITA.
How to calculate the premium for your savings and investment plans?
With Kotak Life Insurance, calculating the premium for your savings scheme is straightforward. The company has digitalized the calculation process by onboarding an online calculator. This facility has automated the procedure, removing the chances of manual errors. You can visit the web page https://www.kotaklife.com/kotakWebBI/LandingPage.aspx. Next, you have to enter the category and the name of the product you plan to buy. After that, you have to furnish information like
age
gender
income
preferred mode of premium payment
sum assured required
policy period
premium payment term
rider additions if any
The page will automatically display the accurate premium amount within a few seconds.
What are the Documents Required to Buy Savings and Investment Plans?
Age proof:
PAN Card
Aadhaar Card
Passport
Driving License
Voter ID
Birth Certificate
School or College Certificate
Identity Proof:
Aadhaar Card
Voter ID
Driving License
Passport
PAN Card
A letter with a photograph from a public servant or recognized public authority verifying your identity
Address Proof:
Aadhar Card
Voter ID
Passport
Ration Card
Utility bills of telephone or electricity
Bank Account Statement showing the address
Letter from a recognized public authority verifying the address
Income Proof:
Recent salary slip
Current Form 16 li>
Previous assessment year’s Income Tax Return or Assessment Order
Certificate from employer on company letterhead
Passport size photographs
Cancelled cheque
You will have to attach a photocopy of a cancelled cheque for the bank account where you wish to receive your payouts.
Medical reports
Reports of diagnostic tests about your health conditions might be needed.
Reasons to Choose Kotak Life for Your Savings and Investment Plans
Fast emerging as one of the leading life insurance companies in India, Kotak Life Insurance Company started its journey in 2001, covering over 20 million lives by 31st March 2018. As of 31st March 2019, the company had under its management assets amounting to ₹25936 crores. It offers a vast selection of investment plans. These tools enable you to create abundant resources according to your specific financial situation and monetary goals. The reasons that make Kotak products some of the best saving plans in India are as follows:
The winner of multiple awards
FICCI Insurance Industry Awards honoured Kotak CEO Mr G Murlidhar with "Insurance CEO of the Year –Life Category" award in 2019.
In 2017 Kotak won Outlook Money Award for Life Insurance Provider of the Year
In the same year, i.e. 2017, the company was granted the silver medal for the Best Customer Engagement Campaign Award at DMAsia.
All these accolades establish Kotak’s credibility as one of the best insurance providers in the country.
Consistent and high claim settlement ratio (CSR)
Kotak Life Insurance paid out 2959 claims in the financial year (FY) 2018-19, disbursing Rs. 137 crores in claims. The company scored a noteworthy CSR of 97.4% for the said FY2018-19. Since CSR is a definitive indicator of the dependability of an insurer about honouring claims, you can trust Kotak as a fruitful investment platform.
Option for judicious planning
Kotak lists the details of every plan in the official website, with the opportunity to download brochures. You can examine the risks and potentials of every scheme before making the payment. It also offers a free-look-in period to opt out of the plan if you find the policy incompatible to your needs.
A wide selection of plans
The investment insurance plans are available in numerous variants. These offerings suit every financial need from quick prosperity to securing the family’s finances.
Age of entry up to 65 years
The insurance provider offers some plans that people of advanced age, up to 65 years, can buy. Thus, the company meets the needs of every consumer age group.
Effortless management of policies
You may need services such as:
Registering your policy
Determining Net Asset Value or Fund Value as on date
Downloading unit-linked statement
Acquiring a premium paid certificate
Finding out the premium due date and amount due
You can access such services through the official website or SMS. You can also call on the customer service helpline or chat with the officials online about policy-related queries.
Quick turnaround time
Unless internal verifications are necessary, the insurer settles claims within 7 to 15 days of receiving all relevant documents.
Hassle-free claim process
Kotak offers a smooth claim settlement process that involves only claim intimation and document submission. You can initiate the process of filing claims directly through the online portal. This simplicity assures fast access to funds for your loved ones in their hours of need.
A compassionate and considerate approach
The company is always empathetic towards customers’ needs. For example, in the case of terrorist attacks, war, or natural disasters, the company fast tracks the claim resolution process. It ensures that your family receives funds immediately after their sudden loss
Transparency
Kotak declares fund performances every day and updates customers about market-related information through regular newsletters.
Thus, when it comes to investment insurance, Kotak is a reliable choice.
FAQs
What are Savings and Investment Plans?
A savings and investment plan is a savings scheme that allows you to make systematic deposits into money-making avenues. Thus, such plans enable you to accumulate a corpus over time that you can utilize for your future financial goals. At the same time, such plans offer the benefit of life coverage, protecting your loved ones against economic hardships in your absence. Endowment policies, ULIPs, and money-back plans are a few examples of such schemes.
Who Should Invest in Savings and Investment Plans?
Everyone should include these plans in their financial portfolio. With several varieties to choose from, there is an investment plan for every need.
Those who are young or have a high risk-appetite can opt for long-term savings in equity funds through ULIPs
Conservative investors who are risk-averse can choose assured income and guaranteed savings plans.
People looking for moderate-risk investment channels can select balanced funds in ULIPs.
Investing in a guaranteed income plan can ensure regular income after retirement.
Retired individuals can safeguard their retirement funds through debts funds in ULIPs.
If you need funds at intermittent intervals, you can buy a money-back plan.
Investment plans are also useful for those who are looking for tax savings channels.
What is a Money Back Plan?
In a money-back plan, the insurance provider will pay you a percentage of the sum assured at regular intervals. For example, if you buy a plan with a policy term of 20 years and payout interval of 5 years, you will get a pre-defined part of your sum assured on the 5th, 10th, 15th, and the final year of your policy. At maturity, you will get the balance sum assured. Also, your family remains protected against eventualities with the life insurance part of the plan.
What is an Income Plan?
An income plan is a saving policy that primarily offers yearly or monthly income. Kotak Assured Income Accelerator is one such protection-oriented scheme that provides an annual income after the premium payment phase. The earnings increase year-on-year via income boosters throughout the payout period. Life protection also remains intact throughout the policy term.
What are Guaranteed Savings Plans?
A guaranteed savings planoffers the assurance of higher returns than the total premium outgo. The sum assured is declared upfront. The maturity value is the summation of the life coverage plus guaranteed additions. Thus, such plans offer a fail-safe lump sum at the end of the policy tenure.
How to determine the perfect savings and investment plans for your needs?
Identify your financial needs
Clarity about your immediate and future financial goals is crucial for determining the apt investment plan. You can make a list of objectives like children’s education, retirements planning etc.
After that, chalk out specific time frames for meeting such goals. Match the projected returns of your investment plan with your target funds to decide on the plan to buy. Also, choose the policy tenure accordingly.
Select the premium payment terms wisely
Opt for single premium or regular payment options in keeping with your resources. Consider limited payment terms if your income fluctuates, preventing long-term commitments.
Recognize your risk appetite
When you are young and have lesser financial liabilities, you can opt for aggressive ULIP funds. Such asset types present higher risks but lucrative return potentials. Investors of middle or advanced age with more significant monetary obligations can pick safer options like traditional endowment plans. You can also select ULIPs with age-based portfolio strategies to maximize returns.
Consider liquidity
Choose plans that offer partial withdrawal options, yearly incomes, regular money-back opportunities, or options to avail of loans to access funds in emergencies.
Pay attention to the fine print
Understand all the exclusions, clauses and conditions to be confident about the suitability of the plan.
Weigh in tax-savings
Choose plans that not only help you save tax but also generate tax-exempt income as well.
Diversify your portfolio
Spread out your funds across different investment plans to evade excessive losses in a particular instrument.
Can I Save Tax with Savings and Investment plans?
You can claim tax deductions under Section 80C of the Income Tax Act, 1961 for the premiums paid towards these plans. The amount of tax you can save is equal to the product of the sum invested and your tax rate. For example, if you fall under the 31.2% tax bracket, and invest ₹1.5 lakhs in an investment plan, you can save ₹46,800 in taxes.
Moreover, the maturity benefits, as well as the death benefits, are also tax-exempt, subject to the conditions specified in Section 10(10D).
What are the various savings and investment plans offered by Kotak Life?
Kotak Life offers a wide variety of investment and savings plans. Such plans cover every financial need from wealth creation, income generation, to tax planning. The types of plans include:
Endowment policies like Kotak Classic Endowment Plan, Kotak Premium Endowment Plan
Money-back plan like Kotak Premier Moneyback Plan
ULIP like Kotak Invest Maxima
Income plan like Kotak Assured Income Accelerator, Kotak Premier Income Plan
Guaranteed savings plan like Kotak Assured Savings Plan, Kotak Guaranteed Savings
Limited pay plans like Kotak SmartLife, Kotak Platinum Plan (ULIP)
One-time investment plans like Single Invest Plus, Single Invest Advantage
Double-life protection plan like Single Invest Plus
Top-up ULIP like Kotak Ace Investment>
Low-income support plan like Sampoorn Bima Micro-Insurance
How to buy the best savings and investment plan in India?
The features that decide the best saving policy include:
High yields – When investing in the money market, look for plans that offer diverse fund types and the option to switch among funds with changing market scenario. It will help in maximizing returns. Also, when investing in traditional plans, opt for those that offer guaranteed boosts to your capital.
Low cost – Look for plans that charge the least for handling your funds.
Reliability –The provider must be financially strong enough to be able to meet all claims. Also, a company with a robust claim settlement record promises surety about your claim being cleared
In India, Kotak Life Insurance meets all these parameters.
Offering 6 fund types to choose from and the liberty to switch, the ULIPs from Kotak present substantial growth potential.
Guaranteed income and guaranteed additions lead to capital appreciation in traditional plans.
Some plans require zero premium allocation charges.
With a CSR of 97.4% in the FY 2018-19 and a solvency ratio of 3.02 for the year ending on March 2019, Kotak Life occupies a position of trust in the Indian insurance sector.
Therefore,you can remain stay stress-free about your investments with a Kotak savings and investment plan.
Related Insurance Plans
Browse through the following plans to know more
Kotak Sampoorn Bima Micro-Insurance Plan
Kotak Sampoorn Bima Micro Insurance Plan is a single premium plan with fixed term of 5 years to cater to the needs of low-income customers.
Kotak Premier Moneyback Plan is a limited pay plan that provides lump sum payouts at regular intervals to meet your interim financial requirements and let you offer the best to your family.
Kotak Life Insurance presents Kotak Premier Income Plan a savings and protection oriented plan that provides Guaranteed Annual Income immediately after the premium payment term to provide you with an additional annual income.
Kotak Life Insurance presents a simple savings and protection oriented plan, which provides all guaranteed benefits while giving life insurance cover – Kotak POS Bachat Bima.
You work so hard to build a secured and stable life for you and your loved ones, but in present times, only working hard is not enough, it is important to have a financial plan in place. While you take adequate measures to take care of your health, you still need insurance to secure your health as well as life.
Kotak Fortune Maximiser is a limited pay participating endowment plan, which can be customized as per your requirement to help you achieve your life goals through multiple plan, payout & rider options. Your dreams are important and deserves to be fulfilled, therefore, life mein sirf #BadaSocho.
You may avail of tax as per the Income Tax Act, 1961 subject to conditions as specified in those sections. Tax benefits are subject to change as per tax laws. You are advised to consult your Tax Advisor for details. Goods and Services Tax and Cess as applicable shall be levied over and above premium amount shown here as per applicable tax laws.
Kotak Premier Life Plan is a limited premium paying participating whole life plan, where you can choose to receive bonus payouts even after premium payment term expires.
Kotak Assured Income Accelerator ensures that you get Guaranteed Income every year on the same amount of savings and that the Guaranteed Income increases year on year.
Kotak Wealth Optima Plan is a protection and savings oriented unit linked insurance plan. The plan
provides life insurance cover to protect your family in case of your unfortunate demise. It also provides
the flexibility of choosing premium payment term, investment strategy and investment horizon.
Kotak Platinum is an investment plan with an unmatched combination of three investment strategies and flexibilities for complete control over your investments.
Kotak Invest Maxima is an investment oriented unit-linked life insurance plan with maximum premium allocation and a Systematic Switching Strategy that allows you to enter the equity market in a systematic manner.
