Kotak Single Invest Plan Review Analysis & Details: Kotak Life Insurance

A new insurance policy has recently hit the markets. The policy is from Kotak Mahindra Old Mutual Life Insurance Company and is a Single Premium Policy i.e. you need to pay the money or premium only once. It is a Unit Linked Plan, or ULIP, so you can have a mix of Insurance as well as investments in this policy.
Since this is a single policy, you don't need to keep making repeated payments year after year. You will get a choice on investment funds, and there are many options available to switch your money from one investment option to the other.

What are the funds available for investments under Kotak Single Invest Plan?
There are many funds available for investments under Kotak Single Invest Plan. All of these funds are from Kotak Mutual Fund house or Kotak Insurance.

Kotak Opportunities Fund: This is the fund for investors who have a good risk appetite. This fund will invest in large and mid sized companies stocks.

Kotak Dynamic Floor Fund:

Kotak Dynamic Bond Fund : Suitable for more risk averse investors who are looking for more protection of their capital and limited profits rather than risky investments in equities

How can I invest in these various funds under the Kotak Single Invest Plan?
The Kotak Single Invest Plan offers you 12 different and free switches in one POLICY YEAR. Policy year means the year starting from the date of your policy. Hence, you make a single payment and keep switching your money from one fund to the other as per your will and wish. 12 such transfers or switches are free in one policy year. No details are available about whether there are any charges to be paid if any investor wants to switch more than 12 times in a year.

Is there any charge for entering or exiting from a particular fund?
This is not clear. Though they say FREE SWITCHING, but there are no details available whether there will be any charges in the name of entry load or exit load from a particular fund. Investors should ask this question before making an investment.

What is the allocation for Kotak Single Invest Plan?
It is reported that the allocation of investors capital money will be in the range of 97.75% and 99%. Actual allocation depends upon the amount of money or Single Premium invested. Rest might be taken as administrative charges or fund management charges.

Is there any tax benefit available in Kotak Single Invest Plan?
Yes. It is reported that Kotak Single Invest Plan will offer tax benefit to the investors. But there is no information about the lock in period of this investment, which should be atleast 3 years in case tax benefit is available. There are some more questions about the investment horizon, about premature withdrawal and how much charges one will have to pay if going for early withdrawal, etc