Kotak Smart Advantage plan, whose tag is line is Make every rupee work for your happiness is essentially a Unit linked Insurance plan (ULIP) which basically accumulates your wealth systematically.
The thing with ULIP’s, as you may know is that the Units are linked with the Stock market and so their value can vary accordingly. But you will have the option in your hand as to what percent of the premium you pay should be allocated into the Stock market. As far as this plan is concerned, you can allocate up to 100% of your premium values. You have the option of allocating your funds either in Dynamic Bond, Dynamic Floor bond or Opportunities bond.
Having said that ULIP’s depend on Stock market prices, Kotak Smart Advantage plan has some guarantee returns. It guarantee’s returns of up to 275% of the first years premium value at the time of policy maturity. This benefit can be maximised by choosing a longer premium payment term. It also gives loyalty bonus at regular intervals to increase the fund value (which essentially means that the number of units will be increased due to the bonus).
Speaking about the premium allocation part, Kotak Smart Advantage plan gives you 100% premium allocation for yearly premium value which is equal to or more than Rs.36000, which results is greater returns in long term. A small charge of up to 2% will be levied on Annual premiums less than Rs.36000 but this charge will be reduced to 0% from the 11th year of premium payment.
Smart advantage plan also has a flexible life cover plan that you can opt from for the same amount of annual premium.
Any person up to a maximum age of 65 years is allowed to be a part of this plan.
The plan term can be chosen from 10-15-20-25-30 years provided the maximum age of the person during the maturity is not above 75 years (This means that a 65 years old person can only opt for a 10 year term plan, all other conditions being satisfied).
The minimum annual premium amount required is Rs.15000.