Kotak Classic Endowment Plan

Kotak Mahindra Old Mutual Life Insurance Ltd. is one of the pioneers in the insurance industry in India. From time to time, they have offered excellent insurance products for their customer’s well-being. From mutual funds and life insurance to stock broking and investment banking, Kotak Mahindra offers it all. Their insurance products are designed to offer protection for individuals and families. While there are many insurance plans that offer protection to the insured person, there are few innovative plans that offer an opportunity for savings and wealth accumulation. Kotak Classic Endowment Plan is one such product.

Kotak Classic Endowment Plan is a long-term protection cum savings insurance scheme by Kotak in which policyholders get protection benefit and can earn bonuses during the term of the policy. Under this plan, the policyholders will be allowed to select the sum assured they receive when the policy matures. At maturity, the policyholders will get the sum assured plus accrued bonus, if any. Also, under this plan, the policyholders will have 2 premium payment options, namely regular pay and limited pay.

Eligibility – Who is the Kotak Classic Endowment Plan for?

To be eligible to purchase the Kotak Classic Endowment Plan, individuals will have to meet the below mentioned eligibility criteria:

Parameter	Details
Plan Type	Protection cum savings plan
Minimum Entry Age	0 years
Maximum Entry Age	If you choose the regular premium payment plan, the maximum entry age is 55 years. For limited premium payment plan, the maximum entry age is 60 years. Whereas for the premium payment plan for 15 or 7 years policy term, the maximum entry age is 58 years.
Minimum Age at Maturity	18 years
Maximum Age at Maturity	75 years
Policy Term	15 years to 30 years

Sum Assured and Premium Range – What you get and what it costs?

When purchasing the Kotak Classic Endowment Plan, individuals can choose from 2 sub-options, namely regular pay and limited pay. The premium payments towards a Kotak Classic Endowment Plan can be made on a monthly/quarterly/semi-annual/annual basis. Following are the sum assured and premium details of the Kotak Classic Endowment Plan:

Parameter	Details
Sum Assured	There is no fixed minimum and maximum sum assured under the Kotak Classic Endowment Plan. Please note that the sum assured will be determined based on the minimum premium amount paid by the policyholder, entry age of the insured, policy term, premium payment plan, and other such factors.
Premium Payment Option	Regular and limited pay
Premium Payment Term	In case of regular pay policies, the premium payment term will be equal to the policy term. In case of limited pay policies, the premium payment term will be 7 pay for policy of 15 years.
Premium Range	Minimum premium for regular pay is Rs.7,000. Minimum premium for limited pay is Rs.7,000 (except for PT/PPT combination of 15/7 years). Minimum premium for policy term and premium payment plan combination of 15/7 years is Rs.12,000. There is no maximum limit on premiums paid. It is subject to the underwriting rules.
Premium Payment Mode	Monthly/Quarterly/Semi-Annual/Annual

Please note that premiums vary based on age, location, plan term and other factors

Plan Coverage – What the Kotak Classic Endowment Plan Covers?

Following are the benefits offered by the Kotak Classic Endowment Plan:

Death Benefit	In case of unfortunate death of the insured person during the policy term, the nominee will receive the sum assured plus accrued bonuses, if any. The death benefit provided will be subject to a minimum of 105% of total premiums which are paid till the date of death of the insured. Also, the sum assured on death is 11 times the annual premium.
Maturity Benefit	The Kotak Classic Endowment Plan also offers maturity benefit. If the policyholder survives till the end of the policy term, maturity benefit will be paid. The maturity benefit paid under the Kotak Classic Endowment Plan is the sum assured amount, accrued reversionary bonus, if any, and terminal bonus, if any.

Riders/Add-On Plans – Additional Coverage under the Kotak Classic Endowment Plan:

The Kotak Classic Endowment Plan offers six additional riders that can increase the value of the policy, namely Kotak Term Benefit Rider, Kotak Accidental Death Benefit Rider, Kotak Permanent Disability Benefit Rider, Kotak Critical Illness Benefit Rider, Kotak Life Guardian Benefit Rider, and Kotak Accidental Disability Guardian Benefit Rider. If the policyholder feels that the base plan is not adequate, they can choose one of the additional coverage options available. For more details on the add-on plans under this policy, read on.

• Kotak Term Benefit Rider: If a policyholder opts this rider, they will get additional protection which is over and above the death benefit provided under the base plan. Policyholders looking for added protection, can choose this rider.
• Kotak Accidental Death Benefit Rider: As the Kotak Classic Endowment Plan does not pay a lump sum amount in the event of any eventuality, policyholders can attach Kotak Accidental Death Benefit Rider to enjoy that benefit. Once the policyholders attach this rider to their base plan, they will get a lump sum amount in case of accidental death of the insured. This lump sum amount will be paid in addition to the death benefit paid under the base plan.

• Kotak Permanent Disability Benefit Rider: If this rider is attached to the base plan, 120% of rider sum assured will be paid out over a period of 5 years in case of permanent disability to the insured due to an accident.

• Kotak Critical Illness Benefit Rider: under this rider, if the policyholder is diagnosed with any one of the critical illnesses mentioned in the policy document, the sum assured under the rider will be payable.

• Kotak Life Guardian Benefit Rider: If this rider is attached to the base policy, in case of death of the insured, the remaining premiums payable will be paid by the insurer on behalf of the policyholder.

• Kotak Accidental Disability Guardian Benefit Rider: If this rider is attached to the base policy, in case of accidental disability, the remaining premiums payable will be paid by the insurer on behalf of the policyholder.

Other Key Features of Kotak Classic Endowment Plan:

Following are some of the other key features of the Kotak Classic Endowment Plan:

Surrender Value	Under the Kotak Classic Endowment Plan, a guaranteed surrender value will be given to policyholders. The guaranteed surrender value depends on the premium payment term chosen by the policyholder at the times of purchasing the plan and the number of premiums paid. The guaranteed surrender value is a percentage of the total premiums paid by the policyholder d (excluding Service Tax & Cess, as applicable, Rider premium and Extra Premium, if any) plus the value of subsisting bonuses, if any. Policies with premium payment term of less than 10 years attract a guaranteed surrender value after payment of full premiums for two consecutive years. Policies with premium payment term of 10 years or more attract a guaranteed surrender value after payment of full premiums for three consecutive years.
Grace Period	The Kotak Classic Endowment Plan has a grace period of 30 days from the due date for premium payment in case of quarterly, semi-annual and annual modes. In case of the monthly mode, the grace period will be 15 days.
Lapse	In case of Limited Premium paying policies, if the premium payment term is less than 10 years, and the premiums for the first two policy years remain unpaid within the grace period and for premium payment terms of 10 years or more, if the premiums for the first three policy years remain unpaid within the grace period, the policy will lapse from the due date of the first unpaid premiums and the customer will not be eligible for any benefits.
Revival / Renewal	A lapsed policy can be reinstated for full benefits by reviving it within two years from the date of the first unpaid premium. Please note that the policy can be revived without providing the evidence of good health on payment of the outstanding balance by paying revival charges, if the payment is made within 6 months from the date of first unpaid premium. Currently, the revival charges are 9%p.a of the outstanding premiums. If a lapsed policy is not revived during the revival period, the policy will be terminated and no benefits will be payable.
Free Look Period	Customers who purchase this policy have the option to return it within 15 days if they are not satisfied with the terms and conditions of the same. If the policy is purchased through distance marketing channels, the free look period will be 30 days.
Policy Loan Facility	Under the Kotak Classic Endowment Plan, policyholders can avail loans up to 80% of the surrender value subject to a minimum loan amount of Rs.10,000.
Assignment	Assignments are allowed under the Kotak Classic Endowment Plan. It should comply with provisions of Section 38 of the Insurance Act, 1938.
Nomination	Nominations are allowed under the Kotak Classic Endowment Plan. It should comply with the provisions of Section 39 of the Insurance Act, 1938.
Reduced Paid-up Benefit	If premiums are not paid within the grace period right after the policy acquired surrender value, the policy will be converted into a reduced paid-up policy automatically. In this case, along with the reduced paid-up benefit sum assured, all subsisting reversionary bonuses that are already attached to the policy will be payable at maturity.
Discount for High Sum Assured on Maturity	Policyholders will get a premium discount for sum assured on maturity of Rs.5 lakhs and above. The discount will be Rs.2 per Rs.1,000 sum assured on maturity.
Modal Factor (% of annual premium)	The following modal loadings will be used to calculate the instalment Premium. Yearly - 100% Half yearly- 51% Quarterly - 26% Monthly - 8.8%
Simple Reversionary Bonus	Under the Kotak Classic Endowment Plan, policyholders will benefit from three types of bonuses. One of it is the simple reversionary bonus. At the end of every financial year, the insurer may offer a bonus expressed as a percentage of the sum assured on maturity. These bonuses will be accrued from the first policy year onwards and till the end of the policy term. It will be payable either on maturity or death of the insured.
Interim Bonus	In the event of a claim, before completing a financial year or before declaration of the simple reversionary bonus for the financial year in which such a claim is intimated, an interim bonus may be payable at such rate as may be decided by the Company, only if it is applicable.
Terminal Bonus	In case of death of an insured after 10 full policy years, the insurance company may decide to give terminal bonus. This bonus will be payable on maturity and will be a percentage of the sum assured on maturity. Please note that this bonus will not be applicable on policies which are converted to reduce paid-up policies or surrendered policies.

Exclusions – What is excluded from the Kotak Classic Endowment Plan?

There is one exclusion under the Kotak Classic Endowment Plan which is the suicide exclusion.

Suicide exclusion: If the life insured commits suicide within one year from the date of issue of the insurance policy, 80% of the premiums paid will be payable. If the insured commits suicide within one year from the date of revival of the policy and if the policy is revived within 6 months from the first missed payment, suicide exclusion will not be applicable and death benefit will not be paid. However, if the insured commits suicide within one year from the date of revival of the policy and if the policy is revived after 6 months from the first missed payment, the benefit payable will be 80% of premiums paid or equal to the surrender value at the date of claim event.

Tax Benefits – How You Can Save with the Kotak Classic Endowment Plan?

Policyholders who have purchased the Kotak Classic Endowment Plan will enjoy tax benefits under Section 10(10D) and Section 80C of the Income Tax Act, 1961.

Why You Should Choose the Kotak Classic Endowment Plan?

Kotak Mahindra Old Mutual Life Insurance Ltd. is one of the leading insurance providers in India. It is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual Plc. The company offers a wide range of insurance products which are specially designed to meet individual requirements from various sectors. The company caters to more than 15 million people across the country. They have over 232 branches in around 167 cities and towns in India. Currently, the company has more than 32 listed products which include 9 group products, 10 ULIPs, and 18 rider options.