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Investment Plans 721 views December 30, 2020
Kotak Assured Income Accelerator is an income anticipated endowment insurance plan that offers guaranteed income every year during the payout period but also raises it year on year. This is due to the Income Boosters that increase the guaranteed income between 5-7% every year. Along with the guaranteed income, you will get benefits such as death benefit, guaranteed maturity benefit and tax benefits. Let’s read this page below and know about the Kotak Assured Income Accelerator plan from Kotak Life Insurance in detail.
Table of Contents
Kotak Assured Income Accelerator Benefits
Death Benefit
If you die during the policy term, your nominee will receive a death benefit irrespective of whether you have got the guaranteed income. And the payable sum assured on death will be as follows:
| Entry Age <= 50 Years | Entry Age 51 Years & More |
|---|---|
| Sum Assured on Death will be the highest of the following: 11X Annual Premium Basic Sum Assured Guaranteed Maturity Benefit | Sum Assured on Death will be the highest of the following: 7X Annual Premium Basic Sum Assured Guaranteed Maturity Benefit |
Note: Sum Assured on Death is subject to a minimum of 105% of the total paid premiums excluding the extra premiums if any.
Survival Benefit
When the payout period starts after the completion of 1 year or after the end of the premium payment term, you will receive a guaranteed income each year till the date of maturity. To know whether you have a higher guaranteed income or not, check the below table.
| Annual Premium Bands in (INR) | Income Rate for 7 Year Premium Payment Term | Income Rate for 10 Year Premium Payment Term | Income Rate for 15 Year Premium Payment Term |
|---|---|---|---|
| 15,000 to 24,999 | 7.00% | 10.00% | 12.50% |
| 25,000 to 49,999 | 7.25% | 10.25% | 12.75% |
| 50,000 & above | 7.50% | 10.50% | 13.00% |
Note: The premium shown in the table above is exclusive of loading for modal factors, extra premium, rider premiums and GST. You could see a higher guaranteed income on paying a greater premium.
Income Booster
The survival benefit income rate will increase by a simple percentage every year as follows with the help of an income booster.
| Premium Payment Term | Income Rate |
|---|---|
| 7 | 5.00% |
| 10 | 6.00% |
| 15 | 7% |
Maturity Benefit
A percentage of the Basic Sum Assured will be paid to you if you have survived till the end of the policy term. Check out the table below to know how it may vary as per your entry age and policy term.
| Age at Entry | Percentage of Base Sum Assured for Policy Term 15 & 20 years | Percentage of Base Sum Assured for Policy Term 30 years |
|---|---|---|
| 25 | 32.50% | 33.50% |
| 30 | 32% | 32.75% |
| 35 | 31.00% | 32.00% |
| 40 | 27.25% | 27.00% |
Tax Benefits
Under Section 10(10D) and Section 80C of the Income-tax Act, 1961 you are eligible to claim a tax deduction on your premium payments and maturity benefits.
Additional Feature & Benefits of Kotak Assured Income Accelerator
Convenient Premium Payment Term & Modes
Your Kotak Assured Income Accelerator plan premium payment term is as follows:
| Premium Payment Term | Policy Term |
|---|---|
| 7 | 15 |
| 10 | 20 |
| 15 | 30 |
Here, you will have the option to pay your premiums from yearly, half-yearly, quarterly or monthly modes and as per your convenience change the premium payment mode on a policy anniversary year.
Additional Protection
For an extra cover for you and your family, choose any of the following riders at a nominal premium besides the base policy premium.
| Kotak Term | Kotak Accidental Death | Kotak Permanent Disability | Kotak Life Guardian | Kotak Accidental Disability Guardian | Kotak Critical Illness Plus |
|---|---|---|---|---|---|
| Rider Sum Assured will be paid in addition to the death benefit. (if the life assured dies) | Rider Sum Assured will be paid in addition to the death benefit. (if the life assured dies due to an accident) | Rider benefits are paid in installments. (if the life assured is disabled due to an accident) | Outstanding premiums are waived. (if the policyholder dies) | Outstanding premiums are waived. (if the policyholder is disabled due to accident) | Rider Sum Assured will be paid if the life assured is diagnosed with any of the 37 covered critical illnesses. |
Policy Loan Facility
You can avail of loans up to 80% of Kotak Assured Income Accelerator Surrender Value, subject to a minimum loan of INR 10,000.
Reduced Paid-Up Benefit
When Kotak Assured Income Accelerator acquires a Surrender Value, and the life assured does not pay the premium within the Grace Period, it will convert into a Reduced Paid-Up policy by default.
And this Reduced Paid-Up Kotak Assured Income Accelerator plan will impact your benefits such as:
- Rider Benefit will be available as per Reduced Paid-Up Sum Assured.
- Surrender Value will be higher than Guaranteed Surrender Value and Special Surrender Value.
- Guaranteed Income is going to be paid as the percentage of Reduced Paid-Up Basic Sum Assured.
- Payout at maturity- Upon survival till the maturity date, you will get a payout at a certain percentage of the Reduced Paid-Up Basic Sum Assured.
- The payout on Death upon the death of the life insured the death benefit will be paid as a Reduced Paid-Up Sum Assured.
Reduced Paid-Up Basic Sum Assured – (Total Paid Premiums/Total Payable Premiums over the policy term) X Basic Sum Assured.
Reduced Paid-Up Sum Assured on Death – (Total Paid Premiums/Total Payable Premiums during the policy term) x Sum Assured on Death.
Eligibility for Kotak Assured Income Accelerator
- Entry age 0-60 years
- Maturity ag 18-85 years
- Policy term 15-30 years
- The minimum annual premium is INR 15,000
- The premium payment option is limited
- Basic Sum Assured is 10X Annual Premium
- Free Look Period of 15 days and 30 days (if policy obtained via distance marketing mode)
- A 30-day grace period
- Suicide exclusion will apply if the life assured dies within one year from the date of issuance or revival