ABOUT KOTAK MAHINDRA OLD MUTUAL LIFE INSURANCE

Kotak Group and Mahindra Group had their partnership 1985 between Uday Kotak and Mr. Mahindra.

Kotak Mahindra is in business since 1985, and insurance part of their business came into existence in the year 2001.

Evolution of Insurance business in Kotak Mahindra business is like this:-

As stated above Kotak Mahindra Life Insurance has Joint venture with Old Mutual plc. Old Mutual Plc is the 12th largest Insurance Company in the world. It has its base of over 4 million life assurance policyholders. It has one of the best Payouts among insurers in the world. It has one of the best Solvency Ratios among insurers in the world. A FTSE 100 financial services group and ranks as a Fortune Global 500 company. The Old Mutual group manages in excess of 239 billion pounds in funds (Dec06). The company is 160 years old and has prominent presence in the United States and the United Kingdom.

Fact of Kotak Mahindra Old Mutual Life Insurance: Old Mutual plc. Is a world class international financial services company, with the operations in life insurance, asset management and banking? It is one of the big players in the U.S., U.K. and the African Continent. Over 150 Years of experience in Life Insurance. One of the best returns amongst insurers worldwide. Base of over 3.8 million Life assurance policyholders. A FTSE 100 Financial services group, and ranks as Fortune Global 500 Company. 3rd largest insurer listed on London Stock Exchange.

 The Old Mutual group manages in excess of $235 billion in funds i.e., a total asset base of more than Rs. 11 Lakh core. South Africas largest life insurance, banking & mutual funds company AUM : US $ 306 billion

Kotak Groups Companies:

KOTAK MAHINDRA BANK LTD KOTAK MAHINDRA CAPITAL COMPANY LTD KOTAK'S INTERNATIONAL BUSINESS KOTAK MAHINDRA PRIME LTD KOTAK SECURITIES LTD KOTAK MAHINDRA ASSET MANAGEMENT COMPANY

If we look at the status of Kotak Life Insurances market share in comparison of other private company in comparison of premium earned:-

If we talk the growth of Insurance industrys private players in recent years, the data will reflect:-

Kotak Mahindra Old Mutual Life Insurance Ltd the fiscal 2007-08, the company reported growth of 80%, moving from the 11th position to 9th. It captured a market share of 1.19% in 2007-08. Last year the company doubled its branch network to 150 from 7

KOTAKS

PRODUCT

FOR

INDIVIDUAL

LIFE

INSURANCE
KOTAK RETIREMENT INVESTMENT PLAN (New) KOTAK SMART ADVANTAGE PLAN KOTAK SAFE INVESTMENT PLAN 2 KOTAK CHILD ADVANTAGE PLAN KOTAK SUKHI JEEVAN KOTAK CAPITAL MULTIPLIER PLAN KOTAK FLEXI PLAN KOTAK RETIREMENT INCOME PLAN (UNIT-LINKED) KOTAK RETIREMENT INCOME PLAN (NON UNIT-LINKED) KOTAK COMPLETE COVER GROUP PLAN

KOTAK ETERNAL LIFE PREMIER SHIELD

KOTAK HEAD START ASSURE WEALTH KOTAK HEAD START FUTURE PROTECT KOTAK EASY GROWTH PLAN (1.25 TIMES) KOTAK EASY GROWTH PLAN (5 TIMES)

Traditional Plans: ENDOWMENT PLAN KOTAK TERM PLAN

Kotaks Product for Group Life Insurance: KOTAK SUPERANNUATION GROUP PLAN KOTAK GRATUITY GROUP PLAN

Additional features;

RIDERS, NOMINEES, LIFE GUARD

KOTAK SMART ADVANTAGE PLAN

Make every rupee work for your happiness In this policy, the investment risk in the investment portfolio is borne by the policyholder. Why should we invest in Kotak smart advantage? Every step in our life brings with it newel earnings. We are determined to make the best of it, so that we can look forward to a great future. How we shape our tomorrow depends greatly on how we build on our today. Kotak Life Insurance introduces Kotak Smart Advantage, a great combination of investment with insurance, to put our savings to work today. It is a market linked plan with 100% premium allocations helping us to accumulate wealth systematically, over the long-term. Kotak Smart Advantage is a great combination of investment with insurance designed to enable you to make the best use of your hard-earned money that puts you right ahead.

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Key Highlights

Guaranteed returns of up to 275% of your first year premium at maturity.

Assured bonus additions at regular intervals during the policy term to enhance your fund value.

100% allocation of your premiums from second year onwards to maximize your earning potential.

A unique3 fund offering you the maximum Opportunity for growth. Option to maximize protection your loved ones. Tex Benefits to avail under 80 C and section 10 (10D) of the Income Tax Act, 1961

How does this plan work?

Kotak Smart Advantage optimizes the return on your premiums paid through a smart mix of assured additions and 100%1 premium allocation. Your first years premium contributes towards

guaranteeing you an Assured Addition Advantage that boosts your fund value at regular intervals throughout the term of the policy. The

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Longer your premium paying term, the higher will be the value of the advantage. The Assured Addition Advantage is a powerful combination of two benefits: A. Fixed Advantage The Fixed Advantage benefit is an assured value guaranteed at the end of your premium payment term. This benefit is calculated as a percentage of your first year premium depending on the premium payment term chosen, provided your policy is in force and all premiums are fully paid up to date.

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B. Dynamic Advantage The Dynamic Advantage benefit is an assured bonus addition credited to your fund value at the end of every 10th, 15th, 20th, 25th and 30th policy year. This benefit will be calculated as a percentage of the average value of funds in the three years preceding the benefit allocation, provided your policy is in force and all premiums are fully paid up to date.

The Assured Addition Advantage lets you enjoy the benefits of a fixed assurance and a dynamic benefit directly linked to your fund value, to help you tread comfortably and swiftly towards your goals. Further, the plan makes your money work smarter for you through 100%1 premium allocation in each policy year from second year

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Onwards, in the funds of your choice. On maturity of your policy, you will receive the Fund Value and the Fixed Advantage benefit, provided your premiums are always fully paid up to date. The Dynamic Advantage benefit would have already been credited in the Fund Value at the specified intervals to accumulate more for you at the end.

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What can you gain by investing in Kotak Smart Advantage?

Smarter Avenues for Growth Smart investing is based on the fundamental idea of regular savings and the power of compounding, which is a great way to multiply your money. It makes small savings transform into jackpots if planned with a long-term vision and right investment fund options. Kotak Smart Advantage, with its power-packed and well-defined fund options, gives you unmatched benefits to maximise your earnings potential. Each of these funds is carefully crafted to suit your individual long-term needs.

You can distribute your investments across one or more funds based on your needs and goals, keeping in mind your time horizon and risk appetite.

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You also have the convenience of switching your monies between funds to balance your needs and risk appetite at different stages of life. Smarter Financial Protection for your loved ones Kotak Smart Advantage allows you to shoulder all your responsibilities to the fullest. In the unfortunate event of loss of life, your beneficiary will receive a life cover3 benefit equal to the higher of: Basic Sum Assured; OR Fund Value plus the Fixed Advantage benefit You have the flexibility to choose any multiple of your first year premium as the Basic Sum Assured according to your lifestage needs, subject to underwriting conditions. Smarter Savings to avail Tax Benefits You can avail of tax benefits under Section 80C and Section 10 (10D) of Income Tax Act, 1961. Tax benefits are subject to change in the tax laws. You are advised to consult your Tax Advisor

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Eligibility A Ready Reckoner

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Plan Snapshot

25-year-old Dinesh realizes the benefits of astute financial planning and wants to save for the long term in a systematic way. He is looking for a plan that gives him the comfort that his savings are being put to work from day one and optimizes his growth potential in the long run. Dinesh has found the solution to his needs in Kotak Smart Advantage. Given below is an illustration of the benefits payable to him for an annual premium of Rs. 40,000 for a 30 year term with a guaranteed basic sum assured of Rs. 600,000:

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Optimal Financial Planning In 5 Easy Steps

Now that you are aware of the Kotak Smart Advantage details, heres how you can structure your financial planning in 5 easy steps:

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KOTAK SAFE INVESTMENT PLAN II

Kotak Safe Investment Plan II is a unit linked plan that combines the benefits of

insurance and capital market returns into one. This plan from the stable of Kotak Life

Insurance is a true reflection of the company's essence:

innovation that will benefit the investor. What makes investing in Kotak Safe Investment Plan II truly unique is that you enjoy a Guaranteed Maturity Value on your investment, with varying degrees of equity exposure depending on your risk appetite. So, if the market value of your units is higher, you reap the benefits, with the peace of mind that whilst in a bear market your investment is under-pinned and safe by the Guaranteed Maturity Value. And there's more, the returns are totally tax-free*. Please note that in this policy, the investment risk in the investment portfolio is to be borne by the policyholder. However,

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Kotak Life Insurance offers you a Guaranteed Maturity Value on this plan to safeguard against the downside risk of falling markets. Why should you invest in Kotak Safe Investment Plan II? Kotak Safe Investment Plan II is an ideal investment option: If you have never invested in the equity markets, for the fear of loss of capital. With Kotak Safe investment Plan II, you need not worry about losing your capital as you have the downside risk protected by way the Guaranteed Value. If you have been an investor in debt markets, you could switch a portion of your funds to equity markets via Kotak Safe Investment Plan II. The plan offers you the potential to earn higher returns with the safety net of a Guaranteed Maturity Value. If you are an aggressive investor in equities, you could protect the downside risk in a bear market by investing a portion of your funds in the Kotak Safe Investment Plan II. What you are essentially doing is that while you enjoy equity returns, your money is protected from abysmal lows and market vagaries by way of a Guaranteed Maturity Value.

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Key Features
Fund Options The capital markets offer a spectrum of investment options. Similarly Kotak Safe Investment Plan II has an entire range of fund options: For the risk averse we have the Guaranteed Gilt Fund and for aggressive investors, we offer the Guaranteed Growth Fund. With the expertise of Kotak backing your investments, we ensure that your risk profile and investment objectives are suitably matched. Guaranteed Maturity Value Most investors who stay away from equity do so not because they do not want to earn higher equity linked returns but because they fear loss of capital. To protect their money from capital losses they invest in low return debt instruments. We, at Kotak Life Insurance, having understood this concern of our investors have developed a unique proposition of a Guaranteed Maturity Value, underpinning your investment in equity. This unique position arises from the fact that the plan offers an option to invest up to 80% in equity via the Guaranteed Growth Fund. On reaching maturity, the Company would pay out the Guaranteed Maturity Value or the market value of units, whichever is higher. Which means that when the markets are in a bull phase, you will enjoy the market linked returns delivered on your portfolio. However, in a bear

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Market, your investment is still safe as you are sure of getting the Guaranteed Maturity Value. In a nutshell, Bulls You Win and Bears You Win. The Guaranteed Maturity Value applies where all premiums have been paid up-todate at maturity and will be reduce where partial withdrawals from the Main Account have been made. On maturity, you can withdraw the entire maturity proceeds and the policy would terminate. If the need is not immediate, you can just let the amount multiply or withdraw up to 50% of the proceeds. Top-up premium Besides regular premiums, whenever you have excess money, you can invest it by way of top-up premiums, without any commitment to bring them again in the coming year (subject to a maximum of 25% of the cumulative premiums paid till that date). You can invest your surplus money across a combination of our Dynamic Funds and units bought from this amount will be held in separate Supplementary Accounts for each top-up. In the event of maturity or death, you would receive the market value of these topup units. Partial Withdrawals/ Surrender Kotak Safe Investment Plan II allows you early exit options through partial withdrawal of funds or complete surrender of the policy. With this plan, you can your access top-up amount in the investment after rd completion of the 3 policy year, with no penalty charges from year 7 onwards (subject to retaining a minimum balance of one annualized basic premium). You may access your

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top-up Amount in the Supplementary Account for funds without any charges. The top-up premiums should complete a lock-in period of 3 years from the date of investing the top-up amount before you can access the investment. Withdrawals will be allowed only after the life insured attains the age of 18. The Guaranteed Maturity Value will be reduced to factor in the withdrawals made by you. Limited Premium Payment If you wish to pay off all premiums over a short period of time, instead of the full term, we have the Limited Premium Payment option for you. This option allows you to pay off your premiums over tenure shorter than your policy term. Under this option, you can pay off your premiums over 3, 5, 6, 7, 10 or 15 years. Death Benefit Life is uncertain and you would not want to take a chance when it comes to your loved ones. Depending on your existing life cover and he need you have, this plan allows you to choose your life cover - the sum assured on death: High Cover: Policy Term x Annual Premium. Low Cover: Greater of (5 x Annual Premium, 0.5 x Policy Term x Annual Premium).

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In the event of unfortunate death, your beneficiary would get the sum assured (less any withdrawals made during the 2 years immediately preceding death) or market value of units in the Main Account whichever is higher. Plus, if you have invested any top-up premiums, then you would get back the market value of units in the Supplementary Account. After attaining the age of 60, all the partial withdrawals made after the age of 58, will be deducted from the Death Benefit. Where the life insured is a minor, the Death Benefit during the first 5 years of the policy term or below the age of 18, will only be the greatest of all premiums paid (excluding rider premiums) and the value of the units.

Advantages Enjoy unlimited upside from capital markets with a downside Protection guarantee on your maturity value Flexibility in premium payment: Limited Premium Payment Option and Full Term payment option Tax free* switching across fund categories Increase contribution at will by way of top-up premium Easy exit options

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Charges
Premium Allocation Charge There is an initial advice and distribution charge related to policy issue that is a percentage of the premium received. The net premium % invested in year 1 is 86% and from year 2 onwards is 96.5%. For topup premiums, the allocation will be 97.5%. Policy Administration Charge To meet the administration and support infrastructure cost, there is an administration charge recovered by liquidation of units. In the first year, the administration charge would be 7% of the annual premium, for premium up to Rs. 20,000. For portions of the premium over Rs. 20,000, the charge would be 3%. In subsequent years, for portions of premiums below and above Rs. 20,000 the charge would be 4% and 2% respectively. Fund Management Charge The fund management charge is towards managing your moneys efficiently, to earn you handsome returns and protect your downside risk. Annual Fund Management charge, adjusted in NAV is: Guaranteed / Dynamic Money Market Fund - 0.6% Guaranteed / Dynamic Gilt Fund - 1.0% Guaranteed / Dynamic Bond Fund - 1.2% Guaranteed / Dynamic Floating Rate Fund -1.2% Guaranteed / Dynamic Balanced Fund - 1.3%

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 Guaranteed / Dynamic Growth Fund - 1.5% Surrender / Partial Withdrawal Charge There is no surrender allowed in the first 3 policy years. Thereafter the charge is 3% in year 4, 2% in year 5, 1% in year 6 and 0% from year 7 onwards. No surrender charges apply to the Supplementary Account. Two withdrawals a year are free (including after maturity). Thereafter Rs. 500 per withdrawal is charged. Switching Charge The first four switches in a year are free. Rs 500 will be charged for every additional switch. Mortality Charge This is the cost of life cover and will be levied by cancellation of units on a monthly basis. Miscellaneous Charges The charges for alteration in policy contract (such as change in sum assured, change in policy term, change in premium mode, etc.) are Rs. 500/-. For premium redirection a fee of Rs. 100/- will be charged. Please note, in the event of experience being worse than expected, the Company reserves its right to impose charges not beyond the level mentioned below: The Fund Management and Administration charges may be increased in future but only if a change takes place for all the participants in that Fund and on prior written notice to the policyholder.

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 The administration charge will not be increased by more than 40% from the original level, for the first 10 years and 100% after 10 years. The surrender charge on Supplementary Account may be increased to a maximum of up to 5% of the value of units after the third policy year. The switching and withdrawal charges may be increased to a maximum of Rs. 1000.

Eligibility

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KOTAK CHILD ADVANTAGE PLAN

"What is Kotak Child Advantage Plan?" The Kotak Child Advantage Plan is an investment plan designed to meet your child's future financial needs. It's a plan that gives your child the "azaadi" to realize his dreams. The plan is a participating plan with a 15-day free look period. "Who can avail of this plan?" HOW OLD DOES THE CHILD HAVE TO BE TO AVAIL OF THIS PLAN? FOR WHAT TERM CAN I AVAIL OF THIS PLAN? WHAT IS THE MAXIMUM SUM ASSURED ALLOWED UNDER THIS PLAN? Minimum age - 0 years Maximum age -17 years 10 - 30 years Rs.25,00,000

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"What are the advantages of this plan?" On Maturity, you would receive the sum assured plus the bonus addition. Bonus addition is the amount in the Accumulation Account*, in excess of the sum assured. The balance available in the Accumulation Account is invested in various financial instruments (as per IRDA regulations) so your money works hard to earn more for your child. The Automatic Cover Maintenance facility ensures the policy remains in force even if you miss premium payments. This facility is available after the first three years of the Term. You can take a loan against this plan, after the policy has been in force for at least three years. You have the option of paying premiums quarterly, half yearly or yearly. You have the benefit of a 15 day free look period. "What value-adds can you opt for?" You may avail of these value adds for a nominal premium at the time of taking the plan. The aggregate premium of the value-adds should not exceed 30% of the basic policy premium.

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Life Guardian Benefit: In case of the unfortunate death of the premium payer, this benefit keeps the policy alive by waiving all future premiums on the policy.

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

Tax Benefit: Section 80C, 10(10D) of Income Tax Act, 1961 would apply. You are advised to consult your tax advisor for details.

"How does this plan work?"

Mr. Sanjay Gupta is a 30-year-old professional and has a 6-year-old son. To secure his child's future, Mr. Gupta decides to buy the Kotak Child Advantage Plan. He wants to buy a plan with a sum assured of 5 lakh, term of 15 years, so that when the child is 21 years old, he has at least Rs.5 lakh to invest in his education/ career etc.

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Mr. Gupta buys the Kotak Child Advantage Plan along with both the value-adds offered with the basic plan. Description KOTAK CHILD ADVANTAGE PLAN PREMIUM LIFE GUARDIAN BENEFIT PREMIUM ACCIDENTAL DISABILITY GUARDIAN BENEFIT PREMIUM Total Annual Premium Paid 33,237 Premium 31,857 1,225 155

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"What happens in the event of death of the life insured?"

In the event of the unfortunate death of the insured during the term of the plan, the following would become payable:

If the policy has been in force for five years or if the life insured is at least 18 years old, the beneficiary will receive either the Sum Assured or Accumulation Account whichever is higher, as on the date of death.

If the death occurs within five years from commencement of policy and if the insured is less than 18 years old, the death benefit would be either the total of all premiums paid so far or the surrender value at that time, whichever is higher.

"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. No claim under the Kotak Life Guardian Benefit would be admitted if, within one year of the date of issue of this policy, the premium payer commits suicide, whether being sane or insane at the time of committing suicide.

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No claim under the Kotak Accidental Disability Guardian Benefit would be

admissible in the following circumstances: (1) The premium payer suffers from self-inflicted injuries, attempt to suicide, insanity, immorality, committing any breach of law or being under the influence of drugs, liquor etc.

(2) Where the premium payer is engaged in aviation or aeronautics other than as a passenger on a licensed commercial aircraft operating on a scheduled route. (3) The premium payer suffers 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, Paramilitary, security or police organization.

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 KOTAK SUKHI JEEVAN

Life is unpredictable, but the earlier you plan for your future, the more likely are you and your family to reap the rewards. Introducing Sukhi Jeevan, a long-term savings and protection plan from Kotak Life Insurance that allows you to plan for your changing needs at every step of life - be it saving for your kids, or your retirement. It helps you prepare for important milestones and, most importantly, it ensures your family is secure when life dishes up harsh misfortunes.

How does this plan benefit me?

Savings for your needs You would have different financial needs to be met and investing small amounts in a disciplined manner will help you accumulate a sizeable lump sum. To structure a plan that is ideal for your needs, it is important for you to estimate the amount of lump sum required for your goals, i.e. the sum assured.

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Based on this, you would have to set aside small amounts to have an accumulated lump sum. Enjoy bonuses Each year, the company would declare a simple reversionary bonus on the sum assured of your policy, from the surplus earned on its participating policy funds. The bonus, once declared, is guaranteed and would be paid on maturity of the policy or in the event of death. An interim bonus would be paid in case of a death claim during the course of the year. Also, if you have paid all your premiums regularly for 15 or more years, a terminal bonus may be paid by way of a reward for disciplined savings over the long-term. Help your kids reach their dreams, or enjoy your retirement On maturity, you will receive the sum assured along with all the bonuses declared on the policy. You are likely to require money as your children begin pursuing higher education and considering careers, marriage and family. As the years roll on, you may choose to cease working or slow down your business activities, and there may be expenses that need to be met. Since all these expenses come along at different times and in varying amounts, this plan allows you the flexibility to utilize your accumulated kitty in a phased manner after maturity. At the end of the term, you can withdraw the entire maturity proceeds and the policy would terminate.

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Provide protection along the way for your loved ones Provided the premiums are paid regularly, if you meet your unfortunate demise during the policy term, from the second year on, your beneficiaries will receive the full sum assured, along with the reversionary bonus declared and interim bonus, if any. In year 1, on accidental death, they will receive the sum assured plus bonus, and on natural death, return of the premiums paid (less any rider premium and extra premium). In case the life insured is a minor, the death benefit will be a return of premiums paid if death occurs within 5 years from the date of commencement or before attainment of age 18, whichever is earlier. Similarly, in the event of permanent accidental disability, installments will be paid out, should you select the Permanent Disability rider available at a small additional premium. The life cover will continue.

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How do I apply for this plan?

Step 1: Decide the total amount you require on maturity (sum assured). Step 2: Decide the term of the policy depending on the goals that you have in mind. If you would like to choose a term of 15 years, given below are premiums for a few combinations of age and sum assured.

Eligibility

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Other terms
Surrender On receipt of all the premiums for a period of at least 3 consecutive years, the policy shall acquire a guaranteed surrender value from that time on. The guaranteed minimum surrender value will be 30% of all premiums paid to date, excluding the first years premium and any other extra premiums. The Company may consider paying an enhanced surrender value, which will not be less than the guaranteed surrender value as stated above. Grace period There is a grace period of 30 days from the due date for payment of premium for the yearly and half-yearly mode, and 15 days for the monthly mode. Lapses Where the premiums for the first 3 policy years are not paid within the grace period, the policy together with the rider benefit, shall lapse from the due date of unpaid premiums. A lapsed policy can be revived within 2 years of the date of lapse by payment of arrears of premiums with interest and collection charges. After payment of 3 years premiums, if future premiums are not paid within days of grace and you have not opted for surrender, an extended risk coverage period

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of 2 years or up to the date of maturity, whichever is earlier, is

Provided by default. The benefit payable on death during this extended risk coverage period of 2 years is the sum assured plus any accrued bonuses, less any unpaid premiums due at the date of death. Paid up On receipt of at least 3 years premiums and after completion of 3 full policy years, you can elect to stop paying future premiums and make the policy paid up. The rider benefits will cease and the policy will cease to participate in future profits. The benefit payable on death, within 2 years from the date of the first unpaid premium, will be the sum assured plus any accrued reversionary bonuses up to the date of the first unpaid premium, less any unpaid premiums due at the date of death. This benefit of payment of sum assured will be available only if death happens during the 2 years following the policy becoming paid up for the first or second time during the policy term. If death occurs any time after the policy becomes paid up for the third or subsequent time during the policy term, only the reduced paid up value and vested bonuses will be payable. The sum assured will be reduced by a factor

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equal to the proportion of the number of premiums paid to the total number of premiums payable.

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Policy revivals The policy may be revived within 2 years from the date of the first unpaid premium by making payment of the arrears of premiums with interest and collection charges. Any revivals after six months from the due date of unpaid premium will require production of evidence of good health. Loans Loans will be granted once the policy acquires a surrender value. The loan will be a maximum of 80% of the surrender value, available at a market related rate of interest. Interest will be compounded and payable semi-annually. Accidental death In the event of accidental death during the first year, the benefit will become payable subject to the following: 1. This benefit is in full force on the day of the accident. 2. The life insured has sustained any bodily injury directly and solely from the accident, which has been caused by outward, violent and visible means. 3. The death occurs within 120 days of the date of the accident due to such injury as stated above, solely, directly and independently of all other causes of death.

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LONG LIFE SECURE PLAN

Both joys and successes come with their fair share of

uncertainties uncertainties you constantly strive to insulate your family from. Protecting your

family and ensuring their comfort has always been your primary concern and key responsibility. All responsibilities require careful planning; for yourself and your family, for the present and the future. Careful planning is all about the right investment strategy secured with appropriate protection - a necessary cushion to face the unexpected events of life. To ensure that your investments give maximum protection to secure your familys future and their financial independence, we at Kotak Life bring to you the Kotak Long Life Secure Plus plan. It is a unit-linked plan that gives you the dual benefit of: Fulfillment of your family goals without any obstacles Comfort of meeting unplanned events head on
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Enhanced Protection for Your Family

Superior Protection Life is uncertain, so when it comes to your familys future, you would not want to leave anything to fate. Your absence is bound to leave an irreplaceable void in the life of your family. At such a trying time, Kotak Long Life Secure Plus can ensure that the dreams you aspired for your family, dont remain unfulfilled. Moreover, it will assist in meeting the planned and unplanned financial obligations your family may face under such a circumstance. This plan provides you the following benefits1 on death of the life insured:

100% of the Sum Assured paid out immediately plus Fund Value

An additional Lump sum Benefit*, on death of the policyholder, equal to your outstanding premiums (i.e. basic premium x number of outstanding installments) is added into the policy fund. This corpus of the fund value and additional Lump sum Benefit would be available immediately or by way of equal semi-annual installments for 5 years (settlement option9).

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Timely Protection Accidents are a harsh reality that no one can ever be prepared for. In the unfortunate event of a permanent accidental disability, all plans tend to go awry. However, in such circumstances, Kotak Long Life Secure Plus steps in as a complete protection plan. The additional Lump sum Benefit equal to your outstanding premiums (i.e. basic premium x number of outstanding installments) will also be paid by Kotak Life in case of a permanent accidental disability2 of the policyholder. This will ensure that your policy continues with an immediate lump sum addition into your fund account. The planned amount for your dreams continues to accumulate with no future premium payment obligations. In this way, Kotak Long Life Secure Plus ensures that neither you nor your family loses out on the benefits you had originally planned for. Boosted Protection Kotak Long Life Secure Plus offers you a range of options to ensure comprehensive protection throughout the policy term for your family against any eventuality. You can opt for additional rider benefits for protection against critical illnesses and accidental death. In case of a critical illness, a portion of the sum assured will be immediately made available to you and your family. Should an unfortunate accident lead to a sudden demise, an additional benefit would be paid out on opting for the accidental death benefit (ADB) rider.

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Accessible Protection With costs being different for every need, the financial requirements for your familys comfort would change from time to time. Kotak Long Life Secure Plus is designed in a way that it takes these changing needs and unfortunate emergencies into account.

You can access your investments after completion of the 3rd policy year by way of partial withdrawals or surrender. There will be no surrender charges from year 11 onwards.

On maturity you can avail of the full fund value and the policy terminates OR selects the settlement option. Through this option you can elect to receive a percentage of the maturity proceeds in cash and the balance by way of pre-selected periodic installments, for up to 5 years after maturity (settlement period)9. All insurance cover will cease on the maturity date of the policy.

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Enhanced Protection for Your Growing Investments

Protected Growth Economic stability is an important aspect to consider while planning for your familys future security. After all, costs and needs only keep increasing as the years go by. This makes it important for your investments to grow alongside too. Equity exposure is essential to keep pace, but it Rquires you to keep a constant eye on the volatile market. Switching your money efficiently from one fund to another to balance risk and return is not an easy task. Understanding this, Kotak Long Life Secure Plus brings you the unique Dynamic Floor Fund, which allows you to enjoy the benefits of a rising capital market, but actively trims back your equity exposure during a slump, thus locking in your gains and shielding your savings from the market volatility.

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Eligibility A Ready Reckoner

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Illustration
Mr. Dutt is a 35-year-old professional, working in a private organization. He lives with his dependent parents, wife and child. He is looking for ways and means of protecting his family and their future from unexpected vagaries of life. He also needs a plan that allows his hard-earned savings to grow, but with adequate protection - A plan that protects his familys interests and goals, come what may. Mr. Dutt has the perfect solution in Kotak Long Life Secure Plus. Given below is an illustration of the benefits payable to Mr Dutt in different scenarios with a sum assured of Rs. 500,000:

Net yield (gross of mortality charges) at 6% investment return 4.59% Net yield (gross of mortality charges) at 10% investment return 8.50%

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Charges
Premium allocation charges An allocation charge that is a percentage of the premium received is levied. The first premium will be allocated at the NAV12 of the date of commencement of the policy and the subsequent renewal premiums will be allocated at the NAV prevailing on the date of receipt of the premiums13. The table below gives you details of the percentage of premium invested in each policy year:

The Premium allocation after year 10 would be 100%. For Top up premiums, the allocation will be 99%.

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Fund management charge (FMC) To manage your money efficiently, thereby enabling you to earn handsome returns, an annual fund management charge that is a percentage of the fund value, is applicable. Here are the details for your easy reference:

Administration charge A nominal flat fee of Rs. 75 per month in year 1 and Rs. 40 per month from year 2 onwards inflating at 5% every year is recovered by monthly deduction of units. Administration charges for annual premiums of Rs. 1 Lac and above are waived. The renewal administration charge at the prevailing level is re-instated where premiums are reduced below Rs.1 Lac. In ACM mode, the renewal administration charges will continue to apply at the prevailing level. Partial withdrawal charge Partial withdrawal is not allowed in the first 3 policy years. The partial withdrawal charge expressed as a percentage of the amount withdrawn is as follows : 5% in the 4th and 5th year, 2.5% from the 6th to 9th year, 1% in the 10th year and no charges thereafter. There is an additional charge of Rs. 500 per withdrawal for the third and subsequent withdrawal in a policy year.

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Mortality and Disability charge This is the cost of life cover, calculated as per thousand Sum at Risk (Basic Sum Assured + Lump sum Benefit) which will be levied by cancellation of units on a monthly basis. The indicative mortality charge per thousand sum at risk for a healthy individual will be:

Lifelong Security in 5 Easy Steps

Now that you are aware of the Kotak Long Life Secure Plus details, heres how you can ensure your familys comfort and happiness in 5 easy steps.

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KOTAK CAPITAL MULTIPLIER PLAN

Kotak is the only plan of its kind that allows the return to be enjoyed beyond maturity. It is a kind of super endowment plan that offers the bonus every year, and also offers the facility to increase the investment and it also offers the facility to withdraw the money as when wants to over a 15 year period post maturity, apart from that additional life cover of 10%, which is over and above the life cover which has been opted. Other Features like surrender to the policy can be opted out of any medical urgency, following riders can be opted: Preferred term Benefit Accidental Death Benefit Permanent disability Benefit Critical Illness Benefit Life Guardian Benefit Accidental Disability Guardian Benefit

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KOTAK ENDOWMENT PLAN

"What is Kotak Endowment Plan?" Kotak Endowment Plan is a protection plan that covers your life and at the same time ensures that your money does not lie idle. It invests a portion of your premium in financial instruments and ensures a considerable growth in savings. This is a participating plan (with profits). Who can avail of this plan?" HOW OLD DO YOU HAVE TO BE TO AVAIL OF THIS PLAN? FOR WHAT TERM CAN I AVAIL OF THIS PLAN? WHAT IS THE MAXIMUM AGE THAT THE PLAN CAN COVER YOU TILL? Minimum age - 18 years Maximum age - 65 years 10-30 years 75 years

What are the advantages of this plan?" 1. On maturity, you would receive the sum assured plus the bonus addition. Bonus addition is the amount in the Accumulation Account*, in excess of the sum assured. 2. The amount available in the Accumulation Account is invested in various financial instruments (as per IRDA regulations) so your money works harder for you.

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3. The Automatic Cover Maintenance facility ensures the policy remains in force even if you miss premium payments. This facility is available after the first three years of the term. 4. You can take a loan against your policy, after the policy has been in force for at least three years. 5. You have the option of paying premiums quarterly, half yearly or yearly. You also have the flexibility to pay premiums through the full term of the policy or pay it for a fixed term of 3, 5, 7, 10 or 15 years. 6. 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 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.

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Accidental Death Benefit: This benefit provides an additional amount (over and above the basic sum assured) to the beneficiary in the event of the 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 provides financial support in case of your permanent disability due to an accident. The amount payable is over and above the basic sum assured and 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 taken with the basic life insurance policy 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 emergency. The maximum Critical Illness Benefit that you can avail of is equal to half the basic sum assured subject to maximum of Rs. 20 lakhs Life Guardian Benefit: This benefit can be availed of, only in a case where the life insured and the propose are two different individuals. In case of the unfortunate death of the propose, this benefit keeps the policy alive by waiving all future premiums on the policy.

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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. This benefit is available also where the life insured is the proposer.

"How does this plan work?"

Mr. Sanjay Gupta, who is 30 years old, decides to buy a Kotak Endowment Plan for a sum assured of Rs. 5,00,000 for a 20-year term for his wife, who is aged 28. Mr. Gupta decides to take the Life Guardian Benefit as a rider to the plan. He does this to provide enhanced security and protection to his wife. The annual premiums paid by Mr. Gupta are as follows Amount (Rs.) Kotak Endowment Plan Premium 22,552 Life Guardian Benefit Premium 1,106 Total Annual Premium Paid 23,658 What would be the payout maturity? On maturity Sanjay Gupta would receive the sum assured or Accumulation Account, whichever is higher. Assuming that the Accumulation Account grows at a rate of 6%, the payout on maturity would be Rs. 6,93,800. At a growth rate of 10%, the maturity amount payable would be Rs. 10,97,700.

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KOTAK ETERNAL LIFE PLANS

Kotak Eternal Life Plans are participating whole life plans that provide enhanced protection till the golden age of 99. The plans provide for a high cover at lower premiums, cash lump sum benefits at desired stage and a way to care for your spouse in the second innings of life.

With guaranteed protection for life, opportunity to create wealth, and comprehensive cover options, these plans provide you with a perfect financial solution to suit your needs. "What can Eternal Life do for you?" Provides you with lifelong protection which continues well beyond retirement to ensure that your loved ones remain secure, irrespective of the uncertainties in life. Enables a high amount of insurance cover at affordable premiums which takes into account your growing responsibilities and keeps pace with your increasing needs. Offers liquidity for planned and unplanned needs so that you have access to your money when you need it the most, adding to your comfort and security at important stages in life.

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"Why Eternal Life Plan?"

Permanent and complete protection till your 99th birthday

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Insurance cover that extends well beyond 60-70 years, to protect your loved ones till you turn 99 Guaranteed Death Benefit till age 99 A complete protection package guarding you against risk of Death, Disability* as well as Critical Illness^

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Adequate protection to meet your growing needs

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High amount of insurance cover that is almost 25-45 times the initial premium paid Regular bonuses# that boost guaranteed death benefit to provide for higher protection during and after the premium payment term

Cash lump sum to fulfill your dreams

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A significant cash lump sum paid at the end of the premium payment term to secure your dreams (Bonuses# accumulated till the end of the premium paying term) In case of emergencies, loan facility can be provided to help you tide through adversities.

Increased choice through a range of plan options

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Increasing Premium Option that keeps income and offers affordable protection from the start A few years of premium payment (option to choose between 10-40 years) offers a lifetime of protection Special rates for females and non-smokers (For Sum Assured greater than Rs. 10 lakhs)

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"How does the product work?"

Step 1: Choose your life cover - the basic Sum Assured, based on your existing insurance cover and needs. Step 2: Decide the number of years you wish to pay premiums, based on your personal and financial goals. Step 3: Choose a plan from two unique variants based on premium option preference. Step 4: Receive a lump sum Cash Benefit at the end of your Premium Payment term. Step 5: Get guaranteed protection till your 99th birthday and enjoy the potential for additional bonus boosts to your life cover along the way!

Key Features:
Lifelong cover protection till age 99 with a few years of premium payment. Higher Protection at affordable premiums Complete safeguard against uncertainties of Accidental Disability# and Critical Illness^ Lump sum Cash at the end of the premium payment term Premiums that match your preference and lifestyle

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Tax Benefits under Sec 80C and

Sec 10(10) D.

KOTAK MONEY BACK PLAN

"What is Kotak Money Back Plan?"

The Kotak Money Back Plan not only covers your life, it also assures you a certain percent of the sum assured as cash payment at regular intervals of every 5 years. It is a savings plan with the added advantage of life cover and regular cash inflow. This plan is ideal for planning special moments like a wedding, your child's education or purchase of an asset etc. This is a participating plan

"What are the advantages of this plan?"

The plan not only covers your life but also provides you with a survival benefit payout every 5 years. In the unfortunate event of death of life insured, the beneficiary would receive the death benefit. The death benefit keeps increases by 7% of the sum assured every year. On maturity, you would receive the sum of the Survival Benefit, Bonus addition* and Guaranteed addition**.

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"What do you receive on maturity of this plan?"

On maturity, you would receive the sum of the Survival benefit, Guaranteed addition and Bonus addition. The table below illustrates the survival benefit pay out for every Rs.1000 of sum assured. Survival Benefit Payouts (in Rs.) Payout for every Rs. 1000 Sum Assured 5th year 15-year Plan Survival Benefit Guaranteed Addition 20-year Plan Survival Benefit Guaranteed Addition 25-year Plan Survival Benefit Guaranteed Addition 250 200 150 10th year 250 200 150 15th year 500 200* 200 150 400 300* 150 400 400* 20th year 25th year

*The Bonus Addition, if any, is payable over and above these benefits

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OBSERVATION & CONCLUSION

Kotak is spreading its channel of distribution

75 was the number of branches that Kotak had it in 2006-2007 and their target is to open 135 branches till the end of the calendar year 2008.

Number of Life Advisor has increased over time. E.g. At the beginning of financial year 2006-2007, Kotak had 12,523 Life Advisors which turned to 24485 at the end of the end of the financial year 2007.

Kotak focuses on large business house inspire of capturing the smaller business.

Less action on tale-marketing and dependence on individual life advisors is much there.

Weak Infrastructure as there was hardly any place left open for the interaction with the customer.

Too much work load on operations department Lack of database on which work (calling) can be done. High commitment of Sales Managers toward the work.

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BIBLIOGRAPHY
1. Money Outlook, 2008 edition 2. Marketing Management, Kotler & Keller 3. Principles of Life Assurance, IC-23 4. Practice of Life Assurance, IC-02 5. IC-33 6. IRDA Annual Report, 2008-2009

Websites:1. www.irdaindia.org 3. www.insuranceworld.com 4. www.findarticles.com 5. www.kotaklife.com

Special Thanks to: Wikipedia, the free encyclopedia.htm http://www.google.com http://www.economywatch.com/business-and-financial/IPO-industry

Other sources:1. The Economic Times 2. Blogs by admin

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