Om Kotak relaunches Kotak Insurance Bond

Mumbai: Om Kotak Mahindra has relaunched its Kotak Insurance Bond (KIB) plan after realigning interest rates to keep in tune with the current market scenario.

The returns have been aligned to keep abreast with changing market interest rates, which have decreased by an overall figure of approximately 1 per cent since the time of the introduction of the plan in March 2002. But the plan still offers a competitive yield as compared to similar products in the market today.

Om Kotak Mahindra Life Insurance Company chief marketing officer Treman Ahluwalia confirms that all policyholders will receive returns as per the interest rates applicable at the time of purchase. "We have now adjusted our returns to a level more in line with declining interest rates in order to keep our commitment to our customers. It may be seen that apart from being a lucrative investment tool, KIB also offers the added advantage of tax benefits and risk cover."

One of the features that sets this plan apart from others is the enhanced benefit it offers in the case of accidental death, in the initial years.

KIB is an investment-cum-life insurance product, providing the twin benefits of fixed returns at the end of the term while covering life at the same time. This is a single-premium plan that acts like a fixed deposit that grows your money on maturity. In its new form, returns can be as high as 7.33 per cent and are guaranteed.

The bond is now being introduced with a 15-year term, in addition to the seven and 10-year periods available earlier. This has been done in order to allow customers the advantage of locking in their money for a longer period in a declining interest rate scenario. The minimum and maximum age eligible for this plan continue to be 18 and 60 years, respectively. The maximum age that the plan can provide cover for is 75 years. The remaining features of the product remain as before.

Om Kotak Mahindra Life Insurance Company is a joint venture between Kotak Mahindra Finance and Old Mutual plc. Om Kotak Mahindra Life Insurance offers seven individual products: Kotak Endowment Plan, Kotak Money Back Plan, Kotak Insurance Bond, Kotak Term Assurance Plan, Kotak Child Advantage Plan, Kotak Preferred Term Plan and Kotak Gramin Bima Yojana. The company has also launched two group products: Kotak Term Grouplan and Kotak Credit-Term Grouplan.

The products offered by Om Kotak Mahindra are available with attractive value-adds like Term Cover, Accidental Death Benefit, Permanent Disability Benefit, Critical Illness Benefit, Kotak Life Guardian Benefit and Kotak Accidental Disability Guardian Benefit.