Kotak e-Invest Plus
Is the Kotak e-Invest Plus Plan a smart digital investment for today’s investor — or just another ULIP with an online twist?
Is the Kotak e-Invest Plus Plan the modern investor’s ally — or a digital disguise for a traditional product?
Is this Kotak e-Invest Plus Plan built for the long run — or are better-performing mutual funds and ETFs still a better choice?
This article takes a closer look at the plan to help you make an informed choice.
What is the Kotak e-Invest Plus?
What are the features of the Kotak e-Invest Plus?
What are the plan options in the Kotak e-Invest Plus?
Who is eligible for the Kotak e-Invest Plus?
What are the benefits of the Kotak e-Invest Plus?
4. Return of Mortality charges
What are the investment strategies and fund options in the Kotak e-Invest Plus?
What are the charges in the Kotak e-Invest Plus?
Grace Period, Discontinuance and Revival of the Kotak e-Invest Plus
Free Look period for the Kotak e-Invest Plus
Surrendering the Kotak e-Invest Plus
What are the advantages of the Kotak e-Invest Plus?
What are the disadvantages of the Kotak e-Invest Plus?
Research Methodology of Kotak e-Invest Plus
Benefit Illustration – IRR Analysis of Kotak e-Invest Plus
Kotak e-Invest Plus Vs. Other Investment
Kotak e-Invest Plus Vs. Pure-term + Equity Mutual Fund
Final Verdict on Kotak e-Invest Plus
The Kotak e-Invest Plus is a Non-Participating Unit-Linked Life Insurance Individual Savings Product. It is a comprehensive Unit Linked Life Insurance Plan that can be customised as per your goals and requirements.
Whether it is protection, investment, financial security for a child, or retirement planning, this Kotak e-Invest Plus plan is an all-in-one solution
Maximizer: This option is aimed at maximising your returns for the money invested.
Rising Star option: Triple Protection Benefit on parents’ death. As a death benefit, Basic Sum Assured under the plan is paid as a lump sum to your nominee, a Monthly Income for the remaining policy term, and future premiums are waived, and the Policy continues till Maturity.
Retire Rich Option: Covers till the age of 99 years. Retirement Income, along with Income Booster, ensures your expenses after Retirement are taken care of.
For Plan Options – Maximizer / Retire Rich:
Death will be the Highest of:
For the plan option – Rising Star:
In case of the death of the Life Insured during the term of the Kotak e-Invest Plus Plan policy, the following benefits are applicable: –
1. The higher of (Basic Sum Assured or 105% of Total premiums paid till date of death) less Applicable partial withdrawals is paid as a lump sum, PLUS
2. Regular Monthly Income over the outstanding policy term (subject to minimum 36 instalments and maximum 120 instalments).
3. The policy remains in force by waiving all future premiums. Future Premiums are infused into the Fund as of the date of Claim settlement.
For Plan Options – Maximizer / Retire Rich:
On Survival to the end of the Kotak e-Invest Plus Plan policy term, if all premiums are paid up to date and the policy is in force, Fund Value as on the date of Maturity (inclusive of ROMC and Yearly Additions if any) shall be payable.
The maturity proceeds in case Retire Rich will be paid as a lump sum only. Please note settlement option is not available for the Retire Rich option
For the plan option – Rising Star:
Fund Value as on the date of Maturity (inclusive of Yearly Additions) is payable. Here, Maturity Benefit is paid irrespective of the survival of the Life Insured if the due premiums have been paid till the date of death.
Starting from the end of the 6th Policy year, till maturity or death, whichever is earlier, 3% of the Annual Premium is infused into the Fund at the end of each policy year.
A percentage of the total amount of Mortality Charges deducted in respect of life cover provided throughout the Policy Term will be added back to the Fund Value based on the age of the life assured, plan option, and Policy Term chosen.
This Kotak e-Invest Plus Plan enables you to choose the funds that suit your risk-return profile. It offers you the flexibility to choose from 2 Investment Strategies:
This strategy offers you the flexibility to choose from a range of power-packed fund options that enable you to maximise your earnings potential.
The available fund options will allow you to balance your risk profile with the chosen tenure.
| S no | Fund options | Equity | Debt | Money Market | |
| 1 | Classic Opportunities Fund | 75-100% | 0-25% | 0-25% | Aggressive |
| 2 | Frontline Equity Fund | 60-100% | 0-40% | 0-40% | Aggressive |
| 3 | Kotak Midcap Advantage fund | 75-100% | 0-25% | 0-25% | Aggressive |
| 4 | Kotak Nifty 500 Multicap Momentum Quality 50 Index Fund | 75-100% | 0-25% | 0-25% | Aggressive |
| 5 | Balanced Fund | 30-60% | 20-70% | 0-40% | Moderate |
| 6 | Dynamic Bond Fund | – | 60-100% | 0-40% | Conservative |
| 7 | Dynamic Floating Rate Fund | – | 60-100% | 0-40% | Conservative |
| 8 | Dynamic Guilt Fund | – | 80-100% | 0-20% | Conservative |
| 9 | Money Market Fund | – | – | 100% | Secure |
The risk profile of each fund varies depending on the assets under management. Make sure to choose fund(s) that match your risk tolerance.
In this investment strategy, allocation is done basis of Age & Risk Appetite. Based on the Risk Appetite of the customer, i.e. Aggressive, Moderate and Conservative, allocation is done between Classic Opportunities Fund and Dynamic Bond Fund.
On a monthly basis, units shall be rebalanced as necessary to achieve the given proportions of the Fund Value in the identified funds. The rebalancing of units shall be done on the month-versary (monthly policy anniversary).
| Age of Life Insured | Aggressive | Moderate | Conservative | |||
| Classic Opportunities Fund | Dynamic Bond Fund | Classic Opportunities Fund | Dynamic Bond Fund | Classic Opportunities Fund | Dynamic Bond Fund | |
| 0-25 | 80% | 20% | 70% | 30% | 60% | 40% |
| 26-35 | 70% | 30% | 60% | 40% | 50% | 50% |
| 36-45 | 60% | 40% | 50% | 50% | 40% | 60% |
| 46-50 | 50% | 50% | 40% | 60% | 30% | 70% |
| 51 onwards | 40% | 60% | 30% | 70% | 20% | 80% |
NIL
₹ 400 per annum will be recovered through the monthly cancellation of units. This charge is applicable until the end of the Kotak e-Invest Plus Plan policy term.
| Fund options | Fund Management Charges |
| Classic Opportunities Fund | 1.35% p.a. |
| Frontline Equity Fund | 1.35% p.a. |
| Kotak Midcap Advantage fund | 1.35% p.a. |
| Kotak Nifty 500 Multicap Momentum Quality 50 Index Fund | 1.35% p.a. |
| Balanced Fund | 1.35% p.a. |
| Dynamic Bond Fund | 1.20% p.a. |
| Dynamic Floating Rate Fund | 1.20% p.a. |
| Dynamic Guilt Fund | 1% p.a. |
| Money Market Fund | 0.60% p.a. |
| Discontinued policy Fund | 0.50% p.a. |
The first twelve switches in a policy year are free. For every additional switch thereafter, ₹ 250 will be charged.
The first four Partial Withdrawals are free in this Plan. For each Partial Withdrawal thereafter, ₹ 250 will be charged.
The charges will be based on the year of discontinuance & the premium amount. Discontinuance charge is nil from the 5th policy year.
This is the cost of life cover, which will be levied by cancellation of units on a monthly basis. Given below are the charges per thousand Sum at Risk for a healthy individual
| Attained Age (in years) | 20 | 30 | 40 | 50 |
| Mortality Charge | 0.924 | 0.977 | 1.68 | 4.436 |
The charges for Policy alterations, including the issue of duplicate policy documents, shall be as per the prevailing policy servicing manual of the Company.
Inference from charges
The charges associated with this Kotak e-Invest Plus Plan can be a significant burden for investors. Unlike most market-linked investment options, which typically allow free switching, withdrawals, or exits, ULIPs like this one often come with multiple fees.
Over time, these charges can erode your returns and negatively impact your long-term wealth-building journey.
There is a Grace Period of 30 days for the annual, half-yearly and quarterly modes and 15 days for the monthly mode from the due date for payment of the premium.
In case of discontinuance during the first five policy years, funds will be transferred to the Discontinued Policy Fund.
The proceeds of the discontinued policy fund shall be paid to the Kotak e-Invest Plus Plan policyholder at the end of the revival period or lock-in period, whichever is later.
In case of discontinuance of policy after lock-in period, the policy shall be converted into a Reduced Paid-Up policy with the Reduced Paid-Up Sum Assured, i.e. original Sum Assured multiplied by the total number of premiums paid to the original number of premiums payable as per the terms and conditions of the policy.
The Kotak e-Invest Plus Plan policyholder can revive the policy within the revival period of 3 years.
The Policyholder is offered a 30-day’ free look period to review the terms and conditions of the Policy (except for policies having a policy term of less than a year) beginning from the date of receiving the Policy Document in electronic form.
In case you wish to surrender within the Lock-in Period: The Fund Value (less applicable discontinuance charges) will be moved into the Discontinuance Policy Fund.
Proceeds of the discontinued policy shall be refunded only upon completion of the lock-in period.
In case you wish to surrender after the Lock-in Period: The Fund Value (Main Account + Top Up Account, if any), as available on the date of surrender of the Policy, will be paid out immediately, and the policy will be terminated.
Evaluating the product’s returns is crucial to ensure you’re selecting the right investment for your portfolio. Let’s break down the Internal Rate of Return (IRR) for the Kotak e-Invest Plus plan using a sample quote from the insurer’s portal.
A 35-year-old male opts for the Kotak e-Invest Plus with the Maximizer (Wealth Creation) Option with a sum assured of ₹ 5 Lakhs. The policy term is 20 years, and the premium paying term is 7 years. The annualised premium is ₹ 50,000.
| Male | 35 years |
| Sum Assured | ₹ 5,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 7 years |
| Annualised Premium | ₹ 50,000 |
Since the policy is focused on wealth creation, the maturity benefit is payable at the end of the 20-year term. Based on assumed returns of 4% and 8% per annum, the projected outcomes are as follows:
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 36 | 2 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 37 | 3 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 38 | 4 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 39 | 5 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 40 | 6 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 41 | 7 | -50,000 | 5,00,000 | -50,000 | 5,00,000 |
| 42 | 8 | 0 | 5,00,000 | 0 | 5,00,000 |
| 43 | 9 | 0 | 5,00,000 | 0 | 5,00,000 |
| 44 | 10 | 0 | 5,00,000 | 0 | 5,00,000 |
| 45 | 11 | 0 | 5,00,000 | 0 | 5,00,000 |
| 46 | 12 | 0 | 5,00,000 | 0 | 5,00,000 |
| 47 | 13 | 0 | 5,00,000 | 0 | 5,00,000 |
| 48 | 14 | 0 | 5,00,000 | 0 | 5,00,000 |
| 49 | 15 | 0 | 5,00,000 | 0 | 5,00,000 |
| 50 | 16 | 0 | 5,00,000 | 0 | 5,00,000 |
| 51 | 17 | 0 | 5,00,000 | 0 | 5,00,000 |
| 52 | 18 | 0 | 5,00,000 | 0 | 5,00,000 |
| 53 | 19 | 0 | 5,00,000 | 0 | 5,00,000 |
| 54 | 20 | 0 | 5,00,000 | 0 | 5,00,000 |
| 55 | 5,35,986 | 10,06,724 | |||
| IRR | 2.53% | 6.36% | |||
At 4% Return, the Fund Value is ₹5.35 Lakhs, with an IRR of 2.53% as per the Kotak e-Invest Plus Plan maturity calculator.
At 8% Return, the Fund Value is ₹10.06 Lakhs, with an IRR of 6.36% as per the Kotak e-Invest Plus Plan maturity calculator.
Note: These returns are illustrative, not guaranteed, and don’t represent the upper or lower limits of actual performance.
The projected returns are modest and fall short of the potential offered by other equity-linked investments. As a result, Kotak e-Invest Plus may not be a suitable option for those aiming for aggressive wealth accumulation through equity exposure.
Investing in low-return market-linked products often fails to deliver meaningful wealth growth. As an investor, your focus should be on instruments that offer inflation-beating returns while aligning with your financial goals.
Let’s consider a more efficient alternative to the Kotak e-Invest Plus plan using the same assumptions from our earlier illustration.
A term plan with a sum assured of ₹5 lakhs costs just ₹10,000 annually for a 20-year term (5-year premium payment term).
In contrast, Kotak e-Invest requires an annual premium of ₹50,000. By choosing term insurance, you save ₹40,000 per year, which can be strategically invested based on your risk appetite.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 5,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 5 years |
| Annualised Premium | ₹ 10,000 |
| Investment | ₹ 40,000 |
Instead of using a bundled ULIP, the saved ₹40,000 can be invested in either a low-risk product like PPF or a market-linked product like an Equity Mutual Fund. In this analysis, we’ve opted for an equity mutual fund.
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -50,000 | 5,00,000 |
| 36 | 2 | -50,000 | 5,00,000 |
| 37 | 3 | -50,000 | 5,00,000 |
| 38 | 4 | -50,000 | 5,00,000 |
| 39 | 5 | -50,000 | 5,00,000 |
| 40 | 6 | -50,000 | 5,00,000 |
| 41 | 7 | -50,000 | 5,00,000 |
| 42 | 8 | 0 | 5,00,000 |
| 43 | 9 | 0 | 5,00,000 |
| 44 | 10 | 0 | 5,00,000 |
| 45 | 11 | 0 | 5,00,000 |
| 46 | 12 | 0 | 5,00,000 |
| 47 | 13 | 0 | 5,00,000 |
| 48 | 14 | 0 | 5,00,000 |
| 49 | 15 | 0 | 5,00,000 |
| 50 | 16 | 0 | 5,00,000 |
| 51 | 17 | 0 | 5,00,000 |
| 52 | 18 | 0 | 5,00,000 |
| 53 | 19 | 0 | 5,00,000 |
| 54 | 20 | 0 | 5,00,000 |
| 55 | 18,69,496 | ||
| IRR | 10.24% | ||
Maturity Value from Equity Mutual Fund is ₹20.75 lakhs (pre-tax). After capital gains tax, the Post-Tax Value is ₹18.69 lakhs. The Post-Tax IRR is 10.24%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 20,75,852 |
| Purchase price | 3,00,000 |
| Long-Term Capital Gains | 17,75,852 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 16,50,852 |
| Tax paid on LTCG | 2,06,357 |
| Maturity value after tax | 18,69,496 |
This approach not only ensures adequate life cover through term insurance but also generates significantly higher returns compared to Kotak e-Invest Plus.
Separating your insurance and investment needs provides greater flexibility, transparency, and the potential for higher inflation-adjusted returns.
As this comparison shows, combining a pure term plan with a targeted investment strategy is far more efficient than opting for bundled products like ULIPs.
Kotak e-Invest Plus gives you the flexibility to invest in market-linked funds and tailor your maturity proceeds based on your financial goals. However, beyond this feature, it remains a typical ULIP where neither the insurance cover nor the investment performance truly benefits the policyholder.
A closer look at the projected returns reveals that it is a low-yield product with an insufficient sum assured, offering limited protection to your family.
As a result, Kotak e-Invest Plus is unlikely to help you meet your long-term financial objectives and may hinder your overall investment journey and it also has a high agent commission.
To build wealth effectively and secure your loved ones, it’s advisable to avoid bundling insurance and investment.
Instead, consider purchasing a pure term life insurance policy for comprehensive protection and investing separately in products aligned with your goals and risk appetite.
This approach offers better returns, more liquidity, and greater control over your finances than ULIPs like Kotak e-Invest Plus.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
For tailored advice, consult a Certified Financial Planner (CFP) who can help you design a personalised strategy based on your risk profile, investment horizon, and life goals.
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