The Kotak Premier Life Plan is a limited premium, non-linked, participating whole life insurance plan that offers coverage to policyholders up to 99 years. The plan provides basic life coverage as well as helps the policyholder secure his/her dependents’ future. Policyholders can also build their wealth through the simple annual reversionary bonus that is declared following the end of the premium paying term.
The policy offers individuals a choice of policy terms as well as a discount on the premium payable in case of high sum assured amounts.
The policy offers adequate coverage in the event of an unfortunate situation, with the minimum sum assured amount being Rs.2 lakh.
One of the features of this policy is the choice of benefit pay-out. Policyholders can choose to receive their survival benefit either as a cash payout or as a paid-up additions option, which would increase the payout received by the policyholder. This amount would be added to the death benefit, thus increasing the amount received.
The Kotak Premier Life Plan is an ideal plan for those looking for long term protection and the opportunity to build their wealth through the policy bonuses paid out. The plan is also ideal for those who wish to bolster the death benefit amount payable through the survival benefit options provided.
The plan is held singly and coverage is extended to the holder only.
Policyholders who are looking at investing in this plan are required to meet the following criteria:
|Entry age||8 year premium paying term: 3-55 years 12 year premium paying term: 3-53 years 15 year premium paying term: 50 years 20 year premium paying term: 45 years|
|Maturity age||99 years|
|Premium paying term||8, 12, 15 or 20 years|
|Policy term||99 years minus the entry age|
|Minimum Sum Assured||Rs. 2 lakh|
The Sum assured amount under the Kotak Premier Life Plan that is payable on maturity is Rs.2 lakh. The plan does not specify a ceiling for the sum assured amount.
The plan allows for the payment of policy premiums either monthly, quarterly, half-yearly or annually, based on the policyholder’s convenience. The minimum amount payable as premium would depend on the sum assured amount selected, the policyholder’s age at entry, the premium payment term as well as other factors such as gender etc.
When calculating the amount of premium payable through the various modes, the company uses the following modal factor:
The Kotak Premier Life Plan coverage is as follows:
The coverage under the plan is as listed in the below table:
|Death benefit||In the event of the policyholder’s death during the premium payment term and provided all premiums thus far have been paid, the following will be paid to the nominee:
|Maturity benefit||The maturity benefit payable under the policy is as follows:
|Survival benefit||If the policyholder survives till the policy term ends, the bonus (as selected at the time of policy purchase) will be paid out, which is either of the following:
|Paid-up additions||Policyholders who choose to receive their bonus in the form of paid-up additions will have their cash bonus and accrued simple reversionary bonus used to buy paid-up additions. These are additional benefits that will be payable on the policyholder’s death or at policy maturity. The paid-up additions can be encashed up to 6 times in a policy year while the balance will part of a participating fund.|
Additional coverage under the Kotak Premier Life Plan:
Kotak gives its policyholders the opportunity to enhance the life coverage received under their insurance plans through additional cover in the form of add-ons or riders. The Kotak Premier Life Plan is one such plan where policyholders can enhance coverage by opting for specific additional coverage based on their needs. The riders can be added to the base plan at the time of purchasing the plan or at the end of a policy year. The following is the list of riders available under this plan:
The Kotak Premier Life Plan provides policyholders with a number of features and benefits. However, there are some exclusions, in which case the company will not provide coverage or benefits to the policyholder. The exclusions under this policy are as follows:
The features and benefits provided by the Kotak Premier Life Plan are as follows:
|Free look period||If the policyholder is not satisfied with any of the conditions or provisions of the policy, he/she may return the policy during the free look period and not incur any penalties. The free look period is 15 days from the date of receipt of the physical policy document. For distance marketing policies, it is 30 days from the date of receipt of the policy.|
|Grace period||Policyholders who default on a premium instalment are provided with a 30 day grace period within which the premium amount can be paid with no penalties.|
|Lapse of policy||The policy will lapse if a certain number of premiums are not paid during the grace period. The number of premiums to be paid is as mentioned below:
|Policy revival||Policyholders can revive a policy that has lapsed or is reduced paid-up by fulfilling the below requirements:
|Surrender value||The policy will acquire a Guaranteed Surrender Value (GSV) if the minimum required premiums as per the premium paying term are paid. The surrender value calculated would be a percentage of total premiums paid and any additions in the form of bonuses and paid-up additions. The value of these would depend on the year of surrender and range from 30%-85%.|
|Loan against policy||The policy allows policyholders to take out a loan against the policy up to 80% of the surrender value of the policy. If the loan is not repaid, the policy will be terminated and no benefits will be paid out.|
|Reduced paid-up||After acquiring surrender value, the policy will be converted into a reduced paid-up by default if premiums are not paid. On acquiring reduced paid-up, the following will occur:
|Policy termination||The policy will be terminated under the following circumstances:
The Kotak Premier Life Plan offers policyholders tax benefits through investing in the policy, enabling them to receive life coverage as well as save on tax. The tax benefits offered to policyholders are as listed below:
It is to be noted that tax exemptions are subject to change. It is advisable to consult with a tax advisor for information on current exemptions.
The Kotak Premier Life Plan provides policyholders with myriad benefits and features, as listed above. In addition to these, Kotak provides a host of services and perks that help the policyholder save, some of which are mentioned below:
Kotak Mahindra Old Mutual Life Insurance Ltd. is one of the most trusted names in the field of life insurance. Set up in the year 2001, the company is a joint venture between the Kotak Mahindra Group and the South African banking conglomerate Old Mutual plc. The company brings together expertise in the fields of banking and insurance, which is evidenced in their insurance products. Catering to various diverse groups, the company’s insurance offerings provide life coverage solutions to suit the needs of working professionals, pensioners, women, children as well as the rural sector. The company’s commitment to excellence and providing the best service is seen through their stellar customer service and quick claims processing. The company has been recognised for their innovative practices and emphasis on customer satisfaction, which have contributed to making them one of the most sought after brands in insurance.
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