Kotak Premier Moneyback Plan is a participating savings plus protection plan that offers a lump sum payout regularly. The payout depends on the policy term and the sum assured chosen by the policyholder at the inception of the policy. The plan also offers reversionary bonuses and maturity addition that are paid out at the time of policy maturity. In some cases, bonuses are declared under the plan from the end of the first policy year. The Kotak Premier Moneyback Plan can be enhanced using an additional cover for accidental death.
The Kotak Premier Moneyback Plan can be bought by an applicant if he/she fulfills certain eligibility criteria with respect to his/her age and the number of years of insurance required. These eligibility conditions are tabulated below:
|Minimum Entry Age||2 years|
|Maximum Entry Age||59 years for policy term of 16 years 55 years for policy term of 20 years 51 years for policy term of 24 years|
|Maximum Maturity Age||75 years|
|Policy Term||Choice of 16 years, 20 years, or 24 years|
|Premium Payment Term||8 years for policy term of 16 years 10 years for policy term of 20 years 12 years for policy term of 24 years|
The Kotak Premier Moneyback Plan offers several benefits such as Death Benefit, Maturity Benefit, and Accidental Death Benefit. The minimum sum assured under the plan is Rs.1,50,000. There is no limit on the maximum sum assured.
The policyholder will have to pay premiums at predefined intervals towards the policy, as described below:
|Minimum Premium (Rs.)||Depends on the minimum sum assured|
|Maximum Premium (Rs.)||Depends on the level of sum assured|
The modal loadings used to calculate the installment premium are as follows:
For yearly premium payment frequency - 100%
For half-yearly premium payment frequency - 51%
For quarterly premium payment frequency - 26%
For monthly premium payment frequency - 8.8%
The Kotak Premier Moneyback Plan provides the following coverage:
|Maturity Benefit||On the date of policy maturity, the sum of the following amounts will be paid out to the policyholder:
|Death Benefit||If the life assured dies during the policy tenure due to natural causes (and not in an accident), the nominee receives the Sum Assured at Death plus Accrued Reversionary Bonus and Terminal Bonus. The Sum Assured at Death is as follows:
|Accidental Death Benefit||If the life assured dies in an accident, an additional basic sum assured is paid along with the death benefit.|
If the suicidal death was within 1 year of policy revival, and the revival was done within 6 months from the unpaid premium due date, the suicide exclusion is not relevant. In this case, the death benefit is paid out.
If the suicidal death was within 1 year of policy revival, and the revival was done after 6 months from the due date of the unpaid premium, the death benefit is the highest amount among the following:
The salient features of the Kotak Premier Moneyback Plan are described below:
|Regular payouts||The plan provides cashback on a regular basis. The cashback is a percentage of the basic sum assured at equal intervals. This is also based on the chosen policy term. The remaining sum assured is paid out at maturity.
|Maturity Addition||In addition to the maturity payout, a lump sum Maturity Addition is payable to the policyholder if the policy is in-force. Maturity Additions are a percentage of the basic sum assured and will change based on the policy term.
|Reduced Paid-up Benefit||After the policy reaches surrender value, if the policyholder stops paying premiums, the policy is converted into a Reduced Paid-up plan. The life assured will continue to enjoy the benefits under the policy in this scenario.|
|High Sum Assured Rebate||The policyholder gets a premium discount if he/she opts for a high sum assured. The discount is Rs.2 per Rs.1000 sum assured, if the total sum assured opted for is Rs.5 lakh and above.|
|Simple Reversionary Bonus||The insurance company may declare a bonus at the end of each financial year. This bonus is expressed as a percentage of the sum assured. The bonuses accrue from the first year onwards and is paid either at death or policy maturity.|
|Interim Bonus||If a claim is raised mid-way through a financial year or before the Simple Reversionary Bonus is declared, an Interim Bonus may be paid by the insurer.|
|Terminal Bonus||The insurance company may pay a Terminal Bonus at the death of the life assured, as long as all premiums have been paid. The bonus is paid along with the Maturity Benefit and will be a percentage of the sum assured. Policies that are Reduced Paid-up or surrendered will not be eligible for the Terminal Bonus.|
|Vesting if the life assured is a minor||If the policy is taken on the life of a minor, it vests when he/she reaches 18 years of age. The life assured will become the policyholder from that date onwards.|
|Grace Period||The insurer offers a grace period of 30 days from the premium payment due date for policies with yearly, half-yearly, and quarterly premium payment frequencies. The grace period for policies with monthly frequency is 15 days. The policyholder can pay the due premiums within the grace period and retain the policy benefits.|
|Policy lapse||The policy will move into lapsed status when the following conditions are met:
|Revival of policy||A Reduced Paid-up or lapsed policy can be revived within 2 years from the unpaid premium due date.
|Surrender of policy||
|Reduced Paid-up Policy||After the policy attains surrender value, if the premiums are discontinued, then the policy is moved to Reduced Paid-up status when the grace period ends.
|Free-look Period||Once the policyholder receives the policy documentation, he/she can review the terms and conditions within. If the policyholder disagrees to any of these terms, he/she can return the policy back to the insurance company within 15 days. This interval is referred to as the free-look period. The free-look period for policies that were purchased through distance marketing channels is 30 days. The policyholder will also have to state relevant reasons for the return of the policy. Once the insurer receives the returned policy, it will provide a refund to the policyholder. The value of the refund will be the sum of the paid premiums minus the expenses incurred by the policyholder on medical examination and stamp duty.|
|Additional rider protection||The Kotak Premier Moneyback Plan can be enhanced through any of the 3 riders provided by Kotak Life Insurance.|
Under Sections 80C and 10(10D) of the Income Tax Act, premiums paid towards the plan and benefits received are eligible for tax benefits. The customer should, however, take the advice of a tax consultant to understand the latest provisions.
Kotak Mahindra Old Mutual Life Insurance Ltd. is a joint venture between Kotak Mahindra Bank Ltd. and Old Mutual Plc.
Kotak Mahindra is a leading banking and financial services organisation in India, offering an extensive range of financial services for the varied needs of customers. The company is associated with commercial banking, mutual funds, stock broking, investment banking, and life insurance. Old Mutual Plc is an international group associated with savings, investment, and protection. The company is listed on JSE and the London Stock Exchange as well.
The partners in the joint venture have immense global and local exposure in the insurance domain. Kotak Life Insurance is known to settle claims with the shortest turnaround time, as the company places a lot of focus on the claim settlement process. The insurer has also been delivering quality services to customers for several years.
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