Kotak Premier Moneyback Plan

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.

Eligibility - Who is the Kotak Premier Moneyback Plan for?

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:

Parameter	Eligibility
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

Sum Assured and Premium Range - What you get and what it costs?

Sum Assured:

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.

Premium:

The policyholder will have to pay premiums at predefined intervals towards the policy, as described below:

Parameter	Yearly	Half-yearly	Quarterly	Monthly
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%

Plan Coverage - What the Kotak Premier Moneyback Plan covers?

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: 40% of the sum assured (This is the balance sum assured amount that remains after the regular payouts under the plan) Maturity Addition Accrued Reversionary Bonus, if applicable Terminal Bonus, if applicable
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: When the entry age of the life assured is less than or equal to 45 years, it is the highest among the following: 11 times the annual premium, or Basic sum assured When the entry age of the life assured is greater than 45 years, it is the highest among the following: 7 times the annual premium, or Basic sum assured The minimum death benefit will be 105% of the total paid premiums till the death of the life assured.
Accidental Death Benefit	If the life assured dies in an accident, an additional basic sum assured is paid along with the death benefit.

Exclusions - What the Kotak Premier Moneyback Plan doesn’t cover?

1. Suicide Exclusion - If the life assured faces death due to suicide within 1 year of policy issuance, 80% of the paid premiums is payable to the nominee.

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:

• 80% of the paid premiums
• Surrender value as on the date of claim

1. Exclusions under the in-built Accidental Death Benefit cover - The following exclusions pertain to the Accidental Death Benefit cover under the plan:
   1. Attempted suicide or self-inflicted injury, irrespective of the sanity of the life assured.
   2. The life assured being under the influence of alcohol, drugs, or narcotics.
   3. Invasion, war, hostilities, civil war, rebellion, mutiny, riot, civil commotion, revolution, or strikes.
   4. Participating in a military, air force, police, or naval operation.
   5. Participating in a flying activity other than as a passenger in a commercial aircraft.
   6. The life assured participating in an unlawful act with criminal intent.
   7. The life assured’s participation in a hazardous sport, such as diving, riding, other underwater activities, martial arts, mountaineering, hunting, bungee-jumping, or parachuting.
   8. Injuries or illnesses due to nuclear contamination.

Other Key Features – Freelook Period, Surrender Values, Grace Period etc.

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. When the policy term is 16 years: At the end of the 4th year, 20% of the basic sum assured is paid out. At the end of the 8th year, 20% of the basic sum assured is paid out. At the end of the 12th year, 20% of the basic sum assured is paid out. At the end of the 16th year, 40% of the basic sum assured is paid out. This is the maturity payout. When the policy term is 20 years: At the end of the 5th year, 20% of the basic sum assured is paid out. At the end of the 10th year, 20% of the basic sum assured is paid out. At the end of the 15th year, 20% of the basic sum assured is paid out. At the end of the 20th year, 40% of the basic sum assured is paid out. This is the maturity payout. When the policy term is 24 years: At the end of the 6th year, 20% of the basic sum assured is paid out. At the end of the 12th year, 20% of the basic sum assured is paid out. At the end of the 18th year, 20% of the basic sum assured is paid out. At the end of the 24th year, 40% of the basic sum assured is paid out. This is the maturity payout.
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. When the policy term is 16 years, the Maturity Addition is 10% of the basic sum assured. When the policy term is 20 years, the Maturity Addition is 20% of the basic sum assured. When the policy term is 24 years, the Maturity Addition is 30% of the basic sum assured.
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: For a policy term of 16 years, if the premiums for the first 2 policy years are not paid within the grace period. For policy term of 20 and 24 years, if the premiums for the first 3 policy years are not paid within the grace period. Once the policy lapses, no benefits will be payable.
Revival of policy	A Reduced Paid-up or lapsed policy can be revived within 2 years from the unpaid premium due date. If the policyholder pays all due premiums and handling charges within 6 months, the revival will take effect without having to produce evidence of good health. If the policyholder pays all due premiums and handling charges after 6 months, the revival will take effect only after the policyholder produces evidence of good health. He/she may also be required to pay extra premiums based on underwriting guidelines. During the period the policy is in lapsed status, it will not accrue any of the declared bonuses. The benefits will, however, be reinstated once the policy is revived. If the lapsed policy is not revived within the revival period, it will be terminated without any payouts. If a policy in Reduced Paid-up status is not revived within the revival period, it will continue in that status till it reaches maturity.
Surrender of policy	If the policy tenure is 16 years, the policy will reach surrender value when all the premiums for 2 consecutive years are paid. For policies with tenure of 20 and 24 years, the surrender value is acquired when the premiums for 3 consecutive years have been paid. The surrender value is the highest among the Guaranteed Surrender Value and the Special Surrender Value. The surrender value is paid as a lump sum amount and the policy terminates following this payout.
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. The policy will then not be eligible for any future bonuses. The rider benefits may or may not cease. This is based on the rider features. When the policy is in Reduced Paid-up mode, survival benefits are not payable. The sum assured under the plan will be the Reduced Paid-up Sum Assured, and is calculated as follows: Reduced Paid-up Sum Assured = Basic sum assured * (Total paid premiums/Total premiums payable throughout the term) A Paid-up policy may be reinstated within 2 years. The maturity benefit payable will be the Reduced Paid-up Sum Assured minus the survival benefits already paid out plus Accrued Reversionary Bonuses. The death benefit payable is the Reduced Paid-up Sum Assured plus the Death Benefit mentioned above in the plan coverage section.
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.

Tax Benefits – How you can save with the Kotak Premier Moneyback Plan?

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.

Other Benefits – How you can save with the Kotak Premier Moneyback Plan?

• Kotak Life Insurance offers the SMS Alert facility using which customers can access their insurance details easily. After registering to this service, customers can receive updates on premium payment due dates, unit link statement, renewal notice, etc.
• The insurer’s website also enables policyholders to pay premiums online. Premium payments can be done through the following methods:
  • Payment through NEFT
  • Payments through direct debit
  • Payments through standing instructions
  • Credit card payments
  • Debit card payments
  • Electronic Clearing Services
  • Mobile - Immediate Payment Service
  • Payments can also be made at the branch offices of the insurer
  • Payments through Kotak Mahindra Bank ATM Drop boxes
  • Pay through Bill Desk
• Customers can also request for a callback from the customer service team of the insurer.

Why you should buy the Kotak Premier Moneyback Plan from Kotak Life Insurance?

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.