In the ambit of insurance two prominent factors are risk-cover and flexibility. Any insurance policy provides the much required risk cover in the form of a financial buffer. Taking up an insurance policy is not a one time affair. The individual's insurance needs keep changing and hence the same should be reviewed constantly. A static insurance policy amounts to ineffective financial planning and the person is consequently under-insured. Keeping the element of flexibility as the underlying factor Kotak has launched a new plan called the Kotak Flexi Plan.

• This plan provides the flexibility to the policyholder to decide that portion of money that should go towards providing for the actual risk cover and that portion that should go towards investment corpus.
• The policyholder is also given the option to decide the amount of sum assured that he/she may want on maturity.(SA1). That portion of the premium that is invested will be referred to as premium (P1). On maturity, the policyholder will receive either the SA1 (which is guaranteed), or the market value of units, whichever is higher.
• The plans offer flexibility to decide the amount of insurance cover that policyholder may want in the case of his/her unfortunate death. The amount of insurance cover selected would be referred to as the insurance sum assured or SA2. Portion of the premium corresponding to SA2 would be referred to as the insurance premium or P2. In the unfortunate event of death of the life insured, the beneficiary would receive SA2 plus the market value of the units, less unpaid P2 premiums.
• In case of any event like marriage or birth of a child or a child's education which may entail a revision in the insurance needs alteration in SA2 is permitted. Increase in SA2 may call for additional underwriting.
• This policy provides the flexibility to make lump sum injections. (Minimum is Rs.10,000 and thereafter in multiples of Rs.10,000). The plan allows the policyholder to make lump sum injection into the Supplementary Account, without affecting the sum assured. Supplementary Account is a separate account that will be set for lump sums that is injected from time to time.
• This policy offers a choice of 6 funds. Investment Premium or P1 (net of charges) would be invested in any or a combination of the funds.
• Money Market Fund invests primarily in low risk through investments in money market instruments such as treasury bills, commercial paper, call money market, etc.
• Floating Rate Fund - The fund seeks to deliver returns in line with the market interest rate, from a portfolio invested primarily in floating rate debt instruments.
• Gilt Fund invests in government securities. The fund gives the policyholder an option to invest in zero credit risk Central Government securities.
• Bond Fund seeks to invest in high-quality debt paper issued by corporates in India.
• Balanced Fund invests in high quality debt securities and listed equity.
• Growth Fund invests in listed equity and equity-related investments. Security will be enhanced through holdings in highly rated debt securities.
• The age limit for this plan: minimum age is 14 years while the maximum age is 65 years.
• This plan is for a minimum term of 10 years and a maximum term of 30 years.