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  • Kotak Guaranteed Savings Plan

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

     The Guaranteed Savings Plan is a non-linked, non-participating life insurance plan offered by Kotak Life Insurance. It is a single life policy that can be applied for by anyone between 3 years and 60 years of age. Kotak Life savings plan offers life protection with guaranteed benefits. Policyholders can increase the protection by adding any of the following riders to this plan:

    • Kotak Accidental Death Benefit Rider.
    • Kotak Term Benefit Rider.
    • Kotak Permanent Disability Benefit Rider.
    • Kotak Accidental Disability Guardian Benefit Rider.
    • Kotak Life Guardian Benefit Rider.

    Premium for this policy starts from Rs.20,000* p.a. Apart from death benefit and maturity benefit, policyholders can enjoy tax benefits under Section 10(D) and Section 80C of the Income Tax Act, 1961.

    *Premiums vary based on age, location, plan term and other factors.

    Eligibility -Who is the Kotak Guaranteed Savings Plan for?

    To apply for the Kotak Guaranteed Savings Plan, you have to meet the following eligibility requirements:

    Plan Type Non-linked, non-participating life insurance plan with Guaranteed benefits.
    Minimum Age at Entry 3 years
    Maximum Age at Entry 60 years
    Maximum Age at Maturity Minimum – 18 years Maximum - 75 years

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

    Sum Assured is the amount that you will receive from the policy. The Sum Assured for Kotak Guaranteed Savings Plan is calculated on the basis of age, premium, Policy Term and Premium Payment Term. Apart from the Sum Assured, you will also get Guaranteed Additions and Guaranteed Loyalty Additions from the plan.

    Premium, on the other hand, is the amount that you have to pay to avail the plan. The minimum and maximum premium of Kotak Guaranteed Savings Plan is mentioned below:

    Minimum Premium Rs.20,000 p.a.
    Maximum Premium No Limit.

    The plan has fixed Policy Terms and limited premium payment options, which are:

    Premium Payment Term Policy Term
    7 years 14 years
    8 years 16 years
    10 years 15 years
    10 years 20 years

    The premium can be paid on a yearly, half-yearly, monthly and quarterly basis. The following premium modal factors are used for deriving the instalment premium for the different payment modes:

    • Yearly – 100%
    • Half-yearly – 51%
    • Quarterly – 26%
    • Monthly – 8.8%

    Note - Premiums vary based on age, location, plan term and other factors.

    Plan Coverage - What the Kotak Guaranteed Savings Plan covers?

    Kotak Guaranteed Savings Plan offers death benefit and maturity benefit to the policyholders.

    Death Benefit If the life insured dies during the Policy Term, then his/her nominee will receive the Sum Assured plus the Accrued Guaranteed Additions. Here, the Sum Assured will be the higher of the following:
    • Basic Sum Assured + Guaranteed Loyalty Additions.
    • 11 times of the Annualised Premium (inclusive of extra premium).
    • 105% of all the premiums paid (inclusive of extra premium) until the date of death.
    The following conditions are applicable to death benefit:
    • If the life insured dies during the grace period, then any premium that is due until date of death will be deducted from the death benefit.
    • Death benefit will reduce if there are outstanding loans. It includes the interest on that loan as well.
    • If the Premium Payment Mode is not yearly, then the balance premium for the policy year and unpaid premium (if any) will be deducted from the death benefit.
    Note: Guaranteed Additions are accrued after the Premium Payment Term is completed. The rates of Guaranteed Additions are a percentage of the Annualised Premium and vary based on the Premium Payment Term and Policy Term.
    • For 7 pay/14 year Policy Term, the Guaranteed Addition rate is 25% of the Annualised Premium.
    • For 8 pay/16 year Policy Term, the Guaranteed Addition rate is 30% of the Annualised Premium.
    • For 10 pay/15 year Policy Term, the Guaranteed Addition rate is 32% of the Annualised Premium.
    • For 10 pay/20 year Policy Term, the Guaranteed Addition rate is 35% of the Annualised Premium.
    The duration of accrual for Guaranteed Additions are:
    • End of 8th policy year – end of 14th policy year for 7 pay/14 year Policy Term.
    • End of 9th policy year – end of 16th policy year for 8 pay/16 year Policy Term.
    • End of 11th policy year – end of 15th policy year for 10 pay/15 year Policy Term.
    • End of 11th policy year – end of 20th policy year for 10 pay/20 year Policy Term.
    Policyholders are advised to select a longer term to avail higher Guaranteed Additions.
    Maturity Benefit If the life insured is alive during the end of Policy Term, then he/she will receive the following Guaranteed Maturity Benefit: Basic Sum Assured + Guaranteed Loyalty Additions + Accrued Guaranteed Additions. Note: Guaranteed Additions are explained above. Guaranteed Loyalty Additions are a percentage of the Annualised Premium and are paid on the date of maturity. The rates of Guaranteed Loyalty Additions are based on the Policy Term, Premium Payment Term and Annualised Premium band. The rates are as follows:
    Annualised Premium Band Guaranteed Loyalty Addition Rates
    7/14 years 8/16 years 10/15 years 10/20 years
    Below Rs.50,000 100% 110% 115% 120%
    Rs.50,000 and above to below Rs.1 lakh 135% 148% 155% 162%
    Rs.1 lakh and above 150% 165% 172% 180%
    Policyholders can avail higher Guaranteed Loyalty Additions if they opt for a longer tenure and higher amount.

    Riders / Add-On Plans – Additional coverage under the Kotak Guaranteed Savings Plan:

    Kotak Guaranteed Savings Plan holders can add the following riders to their policies:

    Kotak Accidental Death Benefit Rider This rider offers a lump sum benefit in case of death by accident. It is offered in addition to the death cover offered by the plan.
    Kotak Life Guardian Benefit Rider This rider waives off all the future premiums in case of death of the policyholder and let the base plan continue with the benefits.
    Kotak Permanent Disability Benefit Rider It pays 120% of the Rider Sum Assured in case of permanent disability caused by accident. The amount is spread out and paid within 5 years.
    Kotak Accidental Disability Guardian Benefit Rider It waives off all the future premiums and let the base plan continue without changes in case of disability caused by accident.
    Kotak Term Benefit Rider This rider provides additional death cover over and above the death benefit offered by the plan to the life insured.

    Exclusions - What the Kotak Guaranteed Savings Plan doesn’t cover?

    Suicide Exclusion – In case the life insured dies by suicide within a period of 12 months from the date of policy commencement, then the nominee will receive 80% of the total premiums. If the life insured commits suicide after 12 months of policy commencement, then the following will apply:

    • If the life insured commits suicide within 1 year from the policy revival date and the plan was revived within a period of 6 months of the 1st unpaid premium date, then the suicide exclusion will not apply and death benefit will be paid to the nominee.
    • If the life insured commits suicide within 1 year from the policy revival date and the plan was revived after 6 months of the 1st unpaid premium date, then the higher of the following will be paid:
      • 80% of total premiums paid (inclusive of extra premium).
      • Surrender Value on date of claim.

    Other Key Features – Free Look Period, Surrender Values, Grace Period, etc.

    Kotak Guaranteed Savings Plan has the following features:

    Particulars Details
    Vesting (minors) If the life insured is a minor, then the policy will vest automatically on him/her after he/she completed 18 years of age. On the date he/she turns 18, the life insured will become the policyholder.
    Grace Period 30 days for all modes except monthly mode. 15 days for monthly mode.
    Surrender Value A plan with 7 and 8 years Premium Payment Terms will get the surrender value after the full premium of 2 successive policy years has been paid. A plan with 10 years Premium Payment Term will get the surrender value after the full premium of 3 successive policy years has been paid. In case of policy surrender, the highest of the following will be paid:
    • Guaranteed Surrender Value.
    • Special Surrender Value will be paid.
    The Guaranteed Surrender Value will be a percentage of the total paid premiums (inclusive of extra premium) plus value of the Guaranteed Additions that have been accrued. Special Surrender Value is decided by the company.
    Policy Loan Policyholders can get up to 50% of the Surrender Value as loan from the policy. At present the interest rate is 12.5%, which is compounded half-yearly. Note – The interest rate can change at any time at the company’s discretion.
    Reduced Paid-Up Policy Once a policy gets the Surrender Value, the premiums that follow are not paid during the grace period, but the policy becomes a Reduced Paid-Up Policy. After becoming Reduced Paid-Up, it will accrue Reduced Guaranteed Additions and Reduced Guaranteed Loyalty Additions. In this case, the benefits will also reduce and will be as follows:
    • Reduced Guaranteed Additions = (Total Premiums paid/Total premiums payable over the Policy Term) x Guaranteed Additions.
    • Reduced Paid-Up Sum Assured = (Total Premiums paid/Total premiums payable over the Policy Term) x Basic Sum Assured.
    • Reduced Guaranteed Loyalty Additions = (Total Premiums paid/Total premiums payable over the Policy Term) x Guaranteed Loyalty Additions.
    Payouts will be given as follows:
    • On Maturity – Reduced Paid-Up Sum Assured + Reduced Guaranteed Loyalty Additions + Accrued Reduced Guaranteed Additions.
    • On Death – On life insured’s death, the nominee will receive the Reduced Paid-Up Sum Assured on Death plus Accrued Reduced Guaranteed Additions. Here, Reduced Paid-Up Sum Assured on Death = Sum Assured on death on the date the policy became Reduced Paid-Up x (Total Premiums paid/ Total premiums payable over the Policy Term)
    If the Reduced Paid-Up policy is also surrendered, then the surrender value (if there is any) for Rider and Base Policy will be calculated as per the terms and conditions. Reduced Paid-Up policies can be revived within a period of 2 years from the 1st unpaid premium date.
    Revival Policy can be revived within 2 years from the 1st unpaid premium date.
    Free Look Period 15 days (30 days, if sold through Distance Marketing Channel).
    Nomination It is allowed as per the provisions mentioned in Section 39 of the Insurance Act of 1938.

    Tax Benefits – How you can save with the Kotak Guaranteed Savings Plan?

    Kotak Guaranteed Savings Plan holders can avail tax benefits under the following 2 Sections of the Income Tax Act of 1969:

    • Section 80C.
    • Section 10D.

    Other Benefits – How you can save with the Kotak Guaranteed Savings Plan?

    Apart from the above, Kotak Guaranteed Savings Plan offers many other benefits. Some of them are:

    Particulars Details
    Customer Care Policyholders can contact the company’s customer care team 24x7 for any policy or claim related queries.
    Calculators Policyholders can use the online calculator present on company’s website to make any policy related calculations.
    Online Premium Payment Policyholders can easily pay their premium online on the company’s website.

    Why you should buy the Guaranteed Savings Plan from Kotak?

    Buying the Guaranteed Savings Plan can be beneficial because Kotak Life Insurance is one of the most trusted insurance companies in India. Over 4 million Indians own policies sold by the company. It is known for its customer service, which customers can access 24x7 for any claim or policy related queries. The company uses the latest technology to fasten the claims process and to ensure complete transparency. Kotak Guaranteed Savings Plan is one of the most popularlife insurance productssold by the company.

    This Insurance Company has not partnered with BankBazaarInsurance.com. For more details, please visit its website/branch office. The trademarks, logos and other subject matters of intellectual property belong to their respective owners.