Kotak Permanent Disability Benefit Rider
- Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
- Convenient payment options - annual, half-yearly, quarterly or monthly premium payments
- Do more with plans that offer pure protection, retirement planning and investment options
The Permanent Disability Benefit Rider offered by Kotak Mahindra Old Mutual Life Insurance Ltd. provides financial support to the policyholder as well as his/her family in case of contingencies that arise out of total and permanent disability resulting from an accident. The rider will be have to attached to the base plan of any policy you wish to purchase from the company, thereby increasing the protection already offered by the base plan. Customers can purchase the rider either at the start of the policy or at any policy anniversary.
The Kotak Permanent Disability Benefit Rider is quite affordable and gives customers the flexibility to make premium payments as per their convenience through Single, Regular and Limited Pay options. The rider also offers comprehensive protection until the end of the base plan’s policy term, and pays out 120% of the Rider Sum Assured over a five- year period. The Rider Sum Assured will be paid out in five equal annual instalments of 12% upon the settlement of claims, and the remaining 60% will be paid out in a lump sum at the end of the fifth year.
The Kotak Permanent Disability Benefit Rider does not offer any death benefit, but in case of the demise of the life assured over the course of the benefit payment period, the discounted value of outstanding benefit, if any, shall be paid out as a lump sum and the rider benefits shall then cease.
Eligibility – Who is the Kotak Permanent Disability Benefit Rider for?
The Kotak Permanent Disability Benefit Rider can be added to any base policy to enhance the level of protection and increase financial security. To purchase the rider, individuals must adhere to certain age restrictions. Following are the eligibility criteria associated with the Kotak Permanent Disability Benefit Rider:
| Particulars | Details |
| Minimum Entry Age | 18 years |
| Maximum Entry Age | 60 years, or maximum entry age of base policy, whichever is lower |
Sum Assured and Premium Range – What you get and what it costs?
Individuals who add the Kotak Permanent Disability Benefit Rider will have to insure their policies for a certain amount, and make premium payments to receive the benefits on offer. Following are some of the important details regarding the sum assured and premium payments for the Kotak Permanent Disability Benefit Rider:
| Particulars | Details |
| Minimum Rider Sum Assured | Rs.50,000 |
| Maximum Rider Sum Assured | Rs.50 lakhs (as a combination of all policies of the Life Insured under the Permanent Disability that arises as a result of an accident with the company. The maximum sum assured of the Kotak Permanent Disability Benefit Rider cannot be more than the sum assured under the base plan. |
| Premium | Dependent on theat rider sum assured, benefit term of the rider and premium payment term. |
| Premium Payment Options | Single Pay, Limited Pay and Regular Pay. The premium payment mode as well as the premium payment option of the Kotak Permanent Disability Benefit Rider shall depend on the mode and option of the base plan. |
| Rider Benefit Term | In case of Regular and Single Pay policies, the minimum rider benefit term will be five years and the maximum will be 40 years. In case of Limited Pay policies, the minimum rider benefit term will be six years and the maximum will be 40 years. |
| Premium Payment Term | In case of Regular Pay policies, the rider premium payment term will be the same as the rider benefit term. In case of Limited Pay policies, the premium payment term will be a minimum of five years and a maximum of 39 years. In case of Single Pay policies, there will be only one single premium payment to be made. |
| Premium Payment Mode | The premium payment mode for Regular and Limited Pay policies can either be annual, semi-annual, quarterly or monthly. In case of Single Pay policies, the premium payment mode will be one single premium payment. |
Exclusions – What the Kotak Permanent Disability Benefit Rider does not cover?
Kotak Mahindra Old Mutual Life Insurance Ltd. will not pay out the total and permanent disability benefit rider in case disability occurs in one of the following instances:
- Attempted suicide, self-inflicted injuries, immorality and insanity, being under the influence of drugs or alcohol, or breaching any law.
- Injuries incurred from war, hunting, terrorism, mountaineering, invasion, any type of motor racing, other dangerous activities or hobbies, or being on duty in any police, military, security or paramilitary organisation.
- Engaging in aeronautics or aviation apart from as a passenger on a licensed commercial aircraft that is flying on a scheduled route.
- Nuclear contamination of a hazardous, explosive or radioactive nature or property contaminated by nuclear fuel materials or any accidents that arise from a nature of this sort.
- Injuries resulting from accidents that are caused by outward, visible and violent means.
Other Key Features of the Kotak Permanent Disability Benefit Rider:
Following are some of the other key features of the Kotak Permanent Disability Benefit Rider:
| Grace Period | Apart from the monthly premium payment mode, a grace period of the 30 days will be granted for all other premium payment modes. The grace period for the monthly mode will be 15 days. Single Premium policies have no grace period. Rider premiums must be paid together with the premium for the base policy. |
| Lapse | For policies with premium payment terms less than 10 years, in case premium are discontinued during the first two policy years, the rider benefit will lapse at the completion of the grace period. Under such circumstances, no benefit shall be payable. In case of policies with premium payment terms exceeding 10 years, in case the premium are discontinued during the first three policy years, the rider benefit will lapse at the completion of the grace period. Under such circumstances, no benefit will be payable. In case of Single Pay policies, the rider benefit shall not lapse. In case of Regular Pay policies, the rider shall lapse in case the due premium has not be paid until the end of the grace period. Moreover, in case the base plan lapses, the rider benefits will lapse automatically. |
| Revival | The revival of the Kotak Permanent Disability Benefit Rider cannot be done independently. The rider can only be revived when the base policy is being revived. Revival will be subject to the Board Approved Underwriting Principles. When renewing the base plan, the rider can be renewed by paying the due premiums. |
| Loan | No loan facility is available with the Kotak Permanent Disability Benefit Rider. |
| Surrender Benefit | In case a customer plans to surrender the rider, following is the availability and formula to calculate surrender value: In case of Limited Pay policies for which the premium payment term is less than 10 years, the surrender value shall be acquired following the payment of two full years’ rider premiums, and in case of Limited Pay policies for which the premium payment term is in excess of 10 years, the surrender value shall be acquired following the payment of three full years’ rider premiums. In case of Single Pay policies, the surrender value shall be acquired immediately following the payment of the single premium. In case of Regular Pay policies, there will be no surrender benefit. |
| Surrender Value | In case of Limited Pay policies, the surrender value shall be 75% x total rider premium paid (not including the first year rider premium) x ((rider benefit term – rider premium payment term) / rider benefit term) x (balance rider benefit term to run / rider benefit term) In case of Single Pay policies, the surrender value shall be 75% x total rider premium paid x ((rider benefit term – 1) / rider benefit term) x balance rider benefit term In case of Regular Pay policies, there will be no surrender value. |
| Reduced Paid-Up | The availability of the Reduced Paid-Up option is subject to the non-payment of rider premiums of Limited Premium Payment Rider, and the rider must have acquired a surrender value. The Kotak Permanent Disability Benefit Rider can be made Reduced Paid-Up only in case the base plan is converted to Reduced Pay. The rider benefit will be based on Reduced Paid-Up rider sum assured. Reduced Paid-Up Rider Sum Assured = (Total rider premiums paid / Total rider premiums payable) x Rider sum assured |
| Alteration | The addition of the Kotak Permanent Disability Benefit Rider can be added to a base plan either at the start of the policy or on any policy anniversary of the base policy subject to Board Approved Underwriting Principles and the terms and conditions of the rider. |
| Nomination | Nomination can be done based on the provisions of Section 39 of the Insurance Act, 1938. |
| Assignment | Assignment can be done based on the provisions of Section 38 of the Insurance Act, 1938. |
| Free Look Period | Customers who are not happy with the terms and conditions of the Kotak Permanent Disability Benefit Rider can return the policy to the company within 15 days of receipt if the policy was purchased through all channels but not Distance Marketing channel. Policies that have been purchased through the Distance Marketing channel can be returned to the company within 30 days of receipt. |
| Service Tax and Cess | Service Tax and Cess shall be levied on rider premiums based on the current tax laws and/or other laws as applicable. The Government of India may also levy taxes for statutory levies, duties, cess, etc. from time to time. |
Tax Benefits – How you can save with the Kotak Permanent Disability Benefit Rider?
Customers who purchase the Kotak Permanent Disability Benefit Rider are eligible to tax benefits subject to conditions prevailing under Section 80C and Section 10(10D) of the Income Tax Act, 1961. Please note that tax laws may be amended from time to time, thereby affecting benefits.
Why you should choose the Kotak Permanent Disability Benefit Rider?
The Kotak Permanent Disability Benefit Rider is a valuable addition to any life insurance policy you purchase from Kotak Mahindra Bank Ltd. A joint venture between Kotak Mahindra Bank Ltd., its affiliates and Old Mutual plc, Kotak Mahindra Old Mutual Life Insurance Ltd. has grown into one of India’s biggest and best insurance providers. The company offers a multitude of products that have been designed keeping in mind the extensive requirements of a diverse customer base. Apart from the fact that the company offers products that are sure to meet your financial requirements, you can also be assured that its customer service, which operates round the clock, will help in resolving any issues you may face or concerns you may have regarding their products.
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