The KRIP (KRIP—Unit-linked) investor's money is invested in the funds of their choice to generate superior returns. According to Gaurang Shah, MD, Kotak Life Insurance, "It is a smart savings plan designed to build a corpus for the future. The investor's 'sum assured' is guaranteed and he can enjoy the benefits of investing in the capital markets without worrying."

The plan offers four investment options: 'gilt fund', 'bond fund', 'floating rate fund' and 'balanced fund'. Depending on the risk-return appetite, investors can allocate the money in one or any combination of funds. In addition, the investor can switch between the funds any time during the term.

The company's returns over the last 12 months on its 'balanced fund' has been 10.86 per cent as compared to 10.68 per cent of NIFTY.

The scheme offers the customers a choice of opting for 'with' or 'without life cover' and 'single premium' options. The option to inject lumpsum amounts during the tenure is also provided.

On retirement, the policyholder can take a cash lumpsum of upto a third of the total amount, which includes the insurance and the investment component. The balance i.e. two thirds will be used to buy an annuity of the investor's choice from Kotak Life Insurance or any other insurer..

The scheme also offers death benefits, the option to retire at the age of 45, flexible premium payment options and an array of five riders covering 'term', 'preferred term benefit','accidental death benefit' among others.