Kotak Premier Endowment Plan
- 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
Kotak Premier Endowment Plan is a combination of savings cum protection by Kotak Life Insurance and it’s a long term investment option to build a substantial corpus over time. The plan offers guaranteed additions during the first five years of the plan itself and it starts accumulating bonuses right from the sixth year. So if you plan to stay invested for a long period, the Kotak Premium Endowment Plan would just be the right option for you.
Eligibility – Who is the Kotak Premier Endowment Plan for?
To be eligible for Kotak Premier Endowment Plan, you need to meet the below mentioned criteria:
| Minimum age at entry | 18 years |
| Maximum age at entry | 60 years |
| Maximum age at maturity | 70 years |
Sum Assured and Premium Payment Term - What you get and what it costs?
| Premium payment term for regular pay | Same as the term period of the policy | ||
| Premium payment term for limited pay | 5,7,10, and 15 years | ||
| Policy term for regular pay | 10 to 30 years | ||
| Policy term for limited pay | 5 Payments | 7 and 10 Payments | 15 Payments |
| 10 to 30 years | 15 to 30 years | 20 to 30 years | |
| Minimum premium amount |
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| Sum assured at maturity | Depends on the chosen premium amount and the premium payment term | ||
| Premium payment mode | Yearly, half-yearly, quarterly, and monthly | ||
Pay-out options under Kotak Premier Endowment Plan:
- The policy accrues bonuses in the form of simple reversionary bonus, interim bonus and terminal bonus
- Death benefits are offered to the nominees of the policyholder and they can choose to accept it as a lump sum or in installments
- On survival of policyholder till the end of the policy term, he/she shall receive maturity benefits which will include basic sum assured, guaranteed additions, accrued reversionary bonuses and terminal bonus.
Plan Coverage - What the Kotak Premier Endowment Plan covers?
The plan offers you financial independence by acting as a long term savings and protection option. At the time of purchasing the policy, you can choose the basic sum assured, policy term, and premium payment term. The benefits will paid out on maturity of the policy or in the event it death of the policyholder. Refer to the below table for features and other benefits of Kotak Premier Endowment Plan.
| Sum Assured | This is the minimum amount guaranteed by the insurer on maturity of the policy. Your premiums are calculated on the basis of basic sum assured, policy term, premium paying term, and the age of the policyholder. |
| Maturity Benefits | The following benefits shall be paid on survival of policyholder till the end of the term period:
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| Options for settlement | The plan offers you the flexibility of choosing the benefits either as lump sum payouts or in installments. If you choose the installment option, then 50% of the maturity/death benefits shall be paid immediately and the remaining will be paid in equal installments over a period of time chosen by the individual or their beneficiary. |
| Death benefits | In the event of death of the policyholder, the company shall pay out the following benefits to the nominee:
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General Exclusion:
- In case the life insured commits suicide within one year of policy inception, his/her beneficiaries shall receive an amount equal to 80% of the total premiums paid by the policyholder till his death.
- If the policyholder commits suicide within one year after revival of the policy—where revival is done within 6 months from the date of first unpaid premium—the beneficiaries shall receive the death benefits offered under the plan and no suicide exclusions shall be applicable.
- If the policyholder commits suicide within one year after revival of the policy—where revival is done after 6 months from the date of first unpaid premium—the beneficiaries shall receive the death benefits offered under the plan and no suicide exclusions shall be applicable.
Riders/Add-On Plans – Additional coverage under the Kotak Premier Endowment Plan:
To increase the level of your protection, Kotak Premier Endowment Plan offers the following riders:
| Kotak Term Benefit Rider | It offers an additional coverage over and above the minimum basic sum assured chosen by the policyholder |
| Kotak Accidental Death Benefit Rider | It’s an additional lump sum benefit paid to the nominees on accidental death of the policyholder |
| Kotak Permanent Disability Benefit Rider | The rider payout a particular sum in instalments if the policyholder becomes disabled following an accident |
| Kotak Critical Illness Benefit Rider | Up to 50% of the basic sum assured is paid to the policyholder on diagnosis of any of the critical illnesses mentioned in the policy contract. |
| Kotak Life Guardian Benefit Rider | On death of the policyholder, the remaining premiums will be paid by the company on their behalf. |
| Kotak Accidental Disability Guardian Benefit Rider | If the policyholder is disabled due to an accident, the remaining premiums will be paid by the company on their behalf. |
Other Key Features – Free Look Period, Surrender Values, Grace Period etc.
Some additional features of the Kotak Premier Endowment Plan are described below:
| Free Look Period | The policy offers a free look period of 15 days for all channels except distance marketing. For policies sold through distance marketing mode, the free look period shall be 30 days. Distance marketing includes the following:
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| Grace Period | The company provides a grace period of 30 days in case you are not able to pay the premiums on time. Failure to pay the premiums even after the grace period can result in policy lapse. |
| Surrender Value | The Gross Surrender Value (GSV) of a policy depends on the payment term chosen by the policyholder and the number of premiums paid by them.
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| Policy Loans | The policy offers loans at the rate of 12.5% compounding half-yearly. The maximum loan amount sanctioned will be equal to 80% of the Guaranteed Surrender Value (GSV). The minimum loan amount a policyholder can avail is Rs.10,000. |
| Policy Revival | A policy once lapsed can be revived within two years from the date of first unpaid premium. While reviving a policy, the policyholder will be required to clear the outstanding premiums and the handling charges. |
Tax Benefits – How you can save with the Kotak Premier Endowment Plan?
Policyholders can avail tax benefits under Section 10(10D) and Section 80C of the Income Tax Act, 1961. The tax laws are subjected to change from time-to-time and therefore, customers are advised to consult a tax advisor before purchasing the plan.
Why should you buy the Kotak Premier Endowment Plan?
People who need a steady income or a lump sum amount should consider buying Kotak Premier Endowment Plan as it offers the right financial security they seek. It helps you deal with unforeseen events and assures you a stable financial future. Kotak is known for its customer-centric products and their efficient claim settlement mechanism. The company, in a very short span, became one of the leading players in the insurance market.
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