Keeping in mind the fact that individuals are looking to get a guaranteed income on investments - one that yields them yearly profits - Kotak Life Insurance launched the Assured Income Accelerator Plan. With this plan, policyholders are guaranteed income every year and an increase in the payout every year. The Assured Income Accelerator basically gives you a high return on your savings, amounting to ten times the investments over the 15 year term period. The minimum investment for a year is Rs.15,000 and policyholders are assured a sum ten times the amount invested.
Customers are eligible for the Kotak Assured Income Accelerator Plan based on the age criteria when initiating the term and at the point of maturation of the term. Listed below is the age criteria to be eligible for the Kotak Assured Income Accelerator Plan.
|Plan Type||Kotak Assured Income Accelerator Plan|
|Entry age||Min: 0 7 premium paying term (PPT) - 60 years 10 PPT - 60 years 15 PPT - 55 years|
|Maturity age||Min: 18 years Maximum: 85 years|
|Minimum premium payment||Rs.15,000|
|Policy term||Min: 15 years Maximum: 30 years|
Customers subscribing to the Kotak Assured Income Accelerator Plan have the option of paying the premium either monthly, quarterly, half-yearly or annually. The sum assured is equal to 10 times the annual premium.
|Sum assured||Guaranteed income equivalent to 10 times the annual premium|
|Premium cost||Min: Rs.15,000 Maximum: No limit. Subject to underwriting.|
|Premium payment mode||Monthly, quarterly, half-yearly, annually|
|Modal Factor||Yearly - 100% of premium Half yearly - 51% of premium Quarterly - 26% of premium Monthly - 8.8% of premium|
Listed below is the coverage and the benefits that come with the Kotak Assured Income Accelerator Plan. The benefits of the Kotak Assured Income Accelerator Plan are death benefits, income booster, survival benefit and maturity benefit.
Death Benefit: The Kotak Assured Income Accelerator Plan comes with a death benefit option. In the case of untimely death of the policyholder during the term, the nominee of the policyholder will receive the sum assured irrespective of the number of premium paying years.
|Parameter||Death Benefit Details|
|For entry age less than or equal to 50 years||The nominee will receive a benefit higher of:
|Entry age above or equal to 51 years||The nominee will receive a benefit higher of:
Discretion: The nominee is liable to a sum assured minimum of 105% of the premiums paid in the case of death of the policyholder.
Survival benefit: Policyholders are promised a guaranteed income during the payout period. The guaranteed income depends on the income rate which is relative to the premium paying term. The income rate increases with the length of the term. In addition, paying a higher premium will result in you taking home a higher guaranteed income during the payout period.
|Guaranteed Income payable at inception of Payout Period|
|Annual premium* bands (Rs.)||Income Rate (% of Basic Sum Assured)|
|7 PPT||10 PPT||15 PPT|
|Rs.15,000 to Rs.24,999||7.00%||10.00%||12.50%|
|Rs.25,000 to Rs.49,999||7.25%||10.25%||12.75%|
|50,000 and above||7.50%||10.50%||13.00%|
*The premium is exclusive of modal factors
Income booster - By facilitating the help of income boosters, the income rate will increase by a certain percentage.
|7 PPT||10 PPT||15 PPT|
* Payment period is the guaranteed income during the payout period. The payout period kicks in one year after the payment term.
Maturity benefit: The maturity benefit is a calculated percentage of the sum assured after the payment term. Here, policyholders are liable to a fixed guaranteed income and the benefit is subject to the age of the policyholder, the entry and the complete policy term.
|Guaranteed Maturity Benefit (% of Basic Sum Assured)|
|Entry Age||15 and 20 years policy term||30 years policy term|
Listed below are the key features of the Kotak Assured Income Accelerator Plan.
|Grace Period||Policyholders that have agreed for the annual, half-yearly and quarterly premium payment mode are granted a grace period of 30 days to pay the premium. For those with the monthly premium payment mode, they are granted a 15 day grace period to pay the premium.|
|Lapse||If policyholders fail to pay the premium within the grace period, the policy will lapse and the individual shall not be eligible for payable benefits from that point on.|
|Surrender||Policyholders are liable to a surrender value if:
|Free look period||Policyholders are given a free look period of 15 days after the commencement of the policy. If the policyholder does not agree to the terms and conditions of the policy, he/she can return the policy within the stipulated time, after which he/she will receive a refund.|
|Nomination||Nomination under the Kotak Preferred Term Plan should comply with the provisions of Section 39 of the Insurance Act, 1938.|
|Revival / Renewal||Policyholders can revive their policy within 2 years of the last unpaid premium. By reviving the policy, individuals will be liable to all the benefits that come with the policy.|
If the policyholder commits suicide within one year of holding the policy, the nominee will receive 80% of the premium paid.
Policyholders enrolled in the Kotak Assured Income Accelerator Plan are liable for tax benefits under Section 10(10D) and Section 80C of the Income Tax Act, 1961.
Policyholders of the Kotak Assured Income Accelerator Plan are at the receiving end of several other benefits. The benefits are listed below:
|Easy premium payment terms and modes||Policyholders have the option of paying the premium either annually, half-yearly, quarterly or monthly. Policyholders can pay their premiums online on the Kotak Insurance website via their credit card, debit card, e-wallet, net banking account, etc.|
|Add-ons||To add more coverage and protection, policyholders can add these riders to their existing policy:|
|Loan Facility||Policyholders can attach a loan against 80% of the surrender value. That said, the minimum loan amount should be Rs.10,000.|
|Reduced paid-up benefit||Once the policy acquires the surrender value and the premium is not paid within the following grace period, the plan will automatically be converted into a reduced paid-up policy.|
Kotak Life Insurance Limited was formed following a joint venture between Old Mutual (South African insurance and Investment Company) and Kotak Mahindra Group. Founded in 2001, the company already has more than 15 million customers and has its presence in over 160 countries across the world. Kotak Life insurance offers its customers with a plethora of insurance products to choose from, including child insurance, retirement insurance, and various other protection plans. Now one of the leading insurance companies in the country, Kotak Life Insurance has a diverse portfolio and caters to the needs of its million customers while having a dedicated customer service team that functions round-the-clock to bring satisfaction to each and every of their customers.
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