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:
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.
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 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:
Note - Premiums vary based on age, location, plan term and other factors.
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:
|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.
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:
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.|
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:
Kotak Guaranteed Savings Plan has the following features:
|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:
|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:
|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.|
Kotak Guaranteed Savings Plan holders can avail tax benefits under the following 2 Sections of the Income Tax Act of 1969:
Apart from the above, Kotak Guaranteed Savings Plan offers many other benefits. Some of them are:
|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.|
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 popular life insurance products sold by the company.
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