"What
is 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.
"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.
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.
"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, subject to the aggregate
premium on all value-adds not exceeding
30% of the basic Kotak Capital Multiplier
Plan Plan premium.
Term Benefit/ 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 Term Benefit
you can avail of 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 policy, you would
receive a portion of the sum assured
to reduce your financial burden in this
emergenc.
Life Guardian Benefit: This benefit
can be availed of, only in case where
the life insured and the proposer are
two different individuals. 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 an 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
