The Kotak Assured Savings Plan is a unique savings and protection plan introduced by Kotak Life Insurance which not only lets you accomplish your financial goals but also wants to take an active role in reaching your financial objectives but also offers affordable life protection. Some of the key features of this plan include Guaranteed Maturity Benefit payable at maturity, tax benefits, options to enhance protection by taking add-on riders and more. The annual premium for this plan starts at Rs.20,000 while there is no limit on the maximum annual premium payment. You can also enhance the protection provided by the plan by opting from a choice of add-on riders such as Kotak Term Benefit Rider, Kotak Permanent Disability Rider, Kotak Life Guardian Benefit Rider, etc.
To avail the Kotak Assured Savings Plan, applicants must fall under the eligibility criteria laid down.
|Minimum Entry Age||3 years|
|Maximum Entry Age||60 years|
|Minimum Age At Policy Maturity||18 years|
|Maximum Age At Policy Maturity||75 years|
In insurance terms, sum assured, also known as overage or cover, is the guaranteed amount which an insurer will pay the insured. It is basically the total amount for which the policyholder is insured. Under the Kotak Assured Savings Plan, the minimum amount of sum assured payable will be decided subject to the minimum premium amount, age of entry into the policy, the duration of the policy and the premium payment term (PPT).
For a premium of Rs.20,000, following is the basic sum assured payable policy entry ages of 3 years and 60 years.
|Age||Policy Term||PPT||Basic Sum Assured|
|3 years||15 years||5 years||1,36,780|
|3 years||20 years||10 years||2,42,340|
|60 years||15 years||10 years||1,19,896|
Under the Kotak Assured Savings Plan, policyholders have a lot of flexibility in terms of their premium payment terms, modes and options.
· The minimum annual premium for this plan starts from Rs.20,000 and there is no cap on the maximum amount of premium, subject to underwriting norms.
· The premium payment option under the Kotak Assured Savings Plan is limited.
· Premiums payment modes allowed this policy are on a yearly, half-yearly, quarterly and monthly basis.
Policy Premium Payment Term
|Premium Payment Term||Policy Term|
|5 pay||10/15 years|
|6 pay||12/18 years|
|7 pay||14/20 years|
|10 pay||15/20 years|
The Kotak Assured Savings Plan is a protection and savings plan which allows you to not only maximize your financial capital but also provides robust life protection to you at the same time. The way this plan works is as follows:
· The policyholder will make premium payments towards the policy for the chosen policy term.
· Once the premium payment term of the policy has expired, the policy will continue to be active until it reaches maturity.
· Upon attaining maturity, the policyholder will be entitled to receive a Guaranteed Maturity Benefit (Total of Basic Sum Assured or BSA), Guaranteed Loyalty Addition (GLA) and Accrued Guaranteed Yearly Additions (GYA).
· The Basic Sum Assured (BSA), as mentioned earlier will be calculated on the basis of the policy tenure, Premium Payment Term, age of policyholder and premiums payable.
The coverage provided by the Kotak Assured Savings Plan includes Death Benefit, Maturity Benefit, Guaranteed Yearly Additions and Guaranteed Loyalty Addition. Each of these have been discussed below.
1. Death Benefit
If the life insured policyholder passes away before the expiry of the plan, their nominee will be entitled to receive the Basic Death Benefit along with Guaranteed Yearly Additions which have accumulated till the date of the insured’s death. Here, Basic Death Benefit is defined as:
|For entry age below 50 years||For entry age of 50 years and over|
|Higher of: • 11x of annual premium • Guaranteed minimum death benefit • 105% of total premiums paid (excluding any extra premiums)||Higher of: · 7x of annual premium · Guaranteed minimum death benefit · 105% of total premiums paid (excluding any extra premiums)|
Guaranteed minimum Death Benefit is calculated as a percentage of the Basic Sum Assured as shown below:
|PPT||Guaranteed min. Death Benefit (% of BSA)|
2. Maturity Benefit
When the life assured policyholder survives till the last day of the policy term, they will entitled to a Guaranteed Maturity Benefit. This benefit comprises of Basic Sum Assured (BSA), Guaranteed Loyalty Additions and Guaranteed Yearly Additions which have accumulated till the last day of the policy term.
3. Guaranteed Yearly Additions
A specific percentage of the Cumulative *Annual Premium that is paid each year will be taken as Guaranteed Yearly Additions. This amount continues to accumulate all through the premium payment term (PPT) will be paid out when the plan has matured or on the death of the life assured. The rate of these additions is fully dependent on the premium payment term that the policyholder has chosen.
|PPT||Guaranteed Yearly Additions as % of Cumulative Annual Benefits|
*Annual Premium is the premium installment (excl. Service Tax, Cess, etc.) divided by modal Factor.
4. Guaranteed Loyalty Addition
Guaranteed Loyalty Addition is calculated as a percentage of the Basic Sum Assured (BSA) and is also paid when the policy reaches maturity. The rate of this addition is dependent on the premium payment term that the policyholder has chosen.
|PPT||Guaranteed Loyalty Addition|
If you wish to enhance the coverage of your insurance plan, you can opt from a number of add-on riders that are available with this plan. The premium for the Rider will be collected along with the premium charged for the base plan. The following riders can be attached to the assured Savings Plan.
Kotak Term Benefit Rider - In the event of the death of the insured policyholder, this rider will provide a rider sum assured amount, over and above the amount of Death Benefit specified under the base policy.
Kotak Accidental Death Benefit Rider - If the insured policyholder passes away following an accident, the rider will pay a rider sum assured, in addition to the Death Benefit payable under the base policy.
Kotak Permanent Disability Benefit Rider - If the life insured policyholder is left permanently disabled following an accident, the benefits payable are given in installments.
Kotak Life Guardian Benefit Rider - In the event of the death of the policyholder (who is different from the life insured), all due premiums payable towards the policy will be waived and paid by the insurer (Kotak Life insurance).
Kotak Accidental Disability Guardian Benefit Rider - In case the insured policyholder is rendered disabled following an accident, then all unpaid will be waived and paid by Kotak Life Insurance.
|Grace Period||Policyholders will be allowed a grace period of 30 days (yearly, half-yearly and quarterly mode) or 15 days (monthly mode) counting from the due date of premium payment.|
|Reduced Paid-up Benefit||The base policy will automatically become a Reduced Paid-up policy if, after policy has acquired Surrender Value, the policyholder fails to pay the due premiums before the end of the grace period.|
|Lapse||The policy will lapse starting from date of first outstanding premium if: · First 2 policy term premium payments have not been done within the grace period (For PPT below 10 years). · First 3 policy term premiums are unpaid under the Grace Period (For PPT of 10 years).|
|Policy Revival||· If the policy has lapsed or turned into a Reduced Paid-Up policy, it can be brought back to its former state, with full benefits, if it is revived before the end of 2 years, starting from the date of the first outstanding premium. · Policy can be revived with the payment of the unpaid premiums, applicable revival charges and without medical reports if payments are done under 6 months starting from the date of the first unpaid premium. · If payments done after 6 months from aforementioned date, proof of good health will have to be produced in addition to the outstanding premiums and revival charges.|
|Policy Surrender||The policy will acquire a Surrender Value based on the number of premiums paid and the chosen premium payment term. · Policies with a PPT below 10 years - Policy will acquire Surrender Value after full premium payments have been done for 2 policy terms. · Policies with PPT of 10 years - Policy will acquire Surrender Value after full premium payments have been done for 3 policy terms.|
|Nomination & Assignment||· Policyholders can name a nominee under the policy in accordance with Section 39 of the Insurance Act, 1938. · Assignment will also be permitted under the policy in accordance with the provisions of Section 38 of the Insurance Act, 1938.|
|Free Look Period||• Policyholders are allowed a free look period of 15 days (30 days if the policy has been issued via distance marketing), counting from the date on which the policy has been received. • Cancellation of the policy must be done by the policyholder by sending the insurer a note about the same in writing, along with stating the reason for cancellation. • After the request for cancellation has been received by the insurer, they will be refunded for the premium amount they have paid, after deduction of expenses like medical examination, stamp charges, proportionate risk premium, etc.|
|Policy Loan||This policy does offer a loan facility under which the policyholder can borrow a loan for an amount that is up to 50% of the policy’s Surrender Value (minimum loan amount of Rs.10,000).|
|High Premium Benefit||· If you have chosen to pay an annual premium between the range of Rs.30,000 - Rs.74,999, you will get a 3% increase in your sum assured. · If you have opted for annual premium payments of over Rs.75,000, your Basic Sum Assured will be increased by 5%.|
Under the Kotak Assured Savings Plan, you are eligible for attractive tax benefits under Section 80C and Section 10(10D) of Income Tax Act, 1961. Benefits will be subject to terms and conditions applicable on those sections as well as to changes based on tax laws.
There are several benefits which one can avail as a part of this plan offered by Kotak Life Insurance. Some of these benefits are as follows:
· Policyholders are entitled to a Guaranteed Maturity Benefit that is paid upon the maturity of the policy.
· Policy provides you with a Basic Sum Assured amount.
· Policyholders are also entitled to Guaranteed Yearly Additions and Guaranteed Loyalty Addition, both of which accrue throughout the policy term and are payable when the policy reaches maturity.
· If you have chosen a longer premium payment term, you stand to reap greater benefits. The Guaranteed Yearly Additions and Guaranteed Loyalty Addition will go higher with an increasing premium payment term (PPT).
· With the High Premium Benefit, you get higher value for your money which translates to a higher Basic Sum Assured.
· Besides policy related benefits, customers can also avail a number of other convenience enhancing benefits offered by Kotak Life such as purchase and renew their policy online, register for policy alerts.
· For added convenience, policyholders can choose from a variety of premium payments options such as NEFT, ECS (electronic clearing services), standing instructions, direct debit, credit/debit card, online payments, IMPS, via Bill Desk, via Kotak Mahindra ATM Drop box, at Kotak Mahindra branches, postal money order or bank guarantee.
Since its inception, Kotak Life Insurance has been one of the leading insurance providers to over 4 million people in India. With a proven record of delivering quality products, the company also pays equal emphasis on maintaining itself as a customer friendly entity. Offering excellent products under the life insurance segment, Kotak Life Insurance also boasts of very impressive numbers in terms of claim settlements, which is a pure indicator of its capabilities.
*Premiums vary based on age, location, plan term and other factors
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