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Investment Plans 782 views December 5, 2020
Kotak Assured Saving Plan is a non-participating endowment assurance plan from Kotak Life to offer protection for your loved ones at attractive premiums and helps accumulate wealth to meet your financial goals. The insured will receive guaranteed benefits at maturity, including the Basic Sum Assured, Accrued Guaranteed Yearly Additions, and Guaranteed Loyalty Addition. And Guaranteed Yearly Additions will add to your policy every time you pay the premium and are payable at maturity or death, whichever happens earlier. Add more value for money via high premium benefit into higher Basic Sum Assured. The customer will also have an option to enhance protection through Riders. At last, you can avail of tax benefits as per the prevailing income tax law. Read the page further and know more about the Kotak Assured Saving Plan.
Table of Contents
Kotak Assured Saving Plan
| Particulars | Details |
|---|---|
| Entry Age | 3-60 years |
| Maturity Age | 18-75 years |
| Policy Term | 20 years |
| Premium Payment Term | 5, 6, 7, and 10 years |
| Premium Payment Option | Limited |
| Premium Payment Mode | Yearly, Half-yearly, Quarterly, and Monthly |
| Grace Period | 30 days (Yearly, Half-yearly, and Quarterly) 15 days (Monthly) |
| Loan | Up to 50% of the Surrender Value |
| Free Look Period | 15 days (for all channels except distance marketing) 30 days (for distance marketing) |
Benefits of Kotak Assured Saving Plan
Know the benefits provided by the plan in detail.
Maturity Benefit
If the policy is in force and all due premiums paid, and you survive till the term-end, you will receive a maturity benefit, which comes as –
The Basic Sum Assured + Accrued Guaranteed Yearly Additions + Guaranteed Loyalty Additions
Death Benefit
In case of the Life Assured’s unfortunate death, the company pays a Basic Death Benefit with the Accrued Guaranteed Yearly Additions (as on the date of death) to the nominee. In this, the Basic Death Benefit is the highest of the following:
If the entry age is less than 50 years
- 11X annualized premium
- Minimum Guaranteed Death Benefit that comes as a percentage of the Basic Sum Assured
- 105% of total paid premiums, except for any extra premiums
If the entry age is 50 years or above
- 7X annualized premium
- Minimum Guaranteed Death Benefit as a percentage of the Basic Sum Assured
- 105% of total paid premiums, except for any extra premiums
Guaranteed Yearly Additions
It is a percentage of the Cumulative Annualized Pad Premium for each year that accrues throughout the premium payment term and is payable at Maturity or on Death. And the rate of such addition is based on your Premium Payment Term (PPT), which is –
- 7% for 5 years
- 8% for 6 years
- 9% for 7 years
- 10% for 10 years
Guaranteed Loyalty Addition
It is a percentage of the Basic Sum Assured payable at Maturity. And the rate of such addition is based on your PPT, which is –
- 10% for 5 years
- 12% for 6 years
- 14% for 7 years
- 20% for 10 years
Note – The benefits are Guaranteed if the policy is in force and all due premiums are paid.
High Premium Benefit
On your life insurance plan, you can avail of additional benefits such as a Higher Basic Sum Assured if your annualized premium falls under the below-mentioned criteria:
| Annualized Premium | Increase in the Basic Sum Assured |
|---|---|
| < INR 30,000 | NIL |
| INR 30,000-74,999 | 3% |
| > = INR 75,000 | 5% |
Riders
To enhance your protection under Kotak Assured Saving Plan, you can add the below-mentioned riders:
Kotak Term Benefit: A Rider Sum Assured becomes payable besides the death benefit under the base plan if the Life Assured dies during the policy term.
Kotak Accidental Death Benefit: A Rider Sum Assured becomes payable in addition to the death benefit of the base plan if the Life Assured dies due to an accident during the policy term.
Kotak Permanent Disability Benefit: Monthly installments are payable to the Life Assured if he/she suffers from permanent disablement due to an accident.
Kotak Life Guardian Benefit: All outstanding premiums will be waived and paid by Kotak Life Insurance upon the death of the policyholder, other than the life assured, during the policy term.
Kotak Accidental Disability Guardian Benefit: All outstanding premiums will be waived and paid by Kotak Life Insurance in the case of accidental disability.
Kotak Critical Illness Plus Benefit: A Rider Sum Assured shall be payable to the Life Assured if he/she gets admitted to the hospital due to any one of the 37 covered critical illnesses.
Exclusion
If you commit suicide within 12 months of the policy risk commencement, your nominee will receive 80% of the total paid premiums. In the case of suicide within 1 year of the date policy when the revival is made within 6 months from the date of first unpaid premium, the exclusion may not apply and the nominee will receive the applicable Death Benefit. However, in the case of suicide within 1 year of the policy revival, when the revival is made after 6 months from the date of first unpaid premium, the nominee will get either an 80% of Total Paid Premium or the Surrender Value (if any), whichever is higher, on the date of death.
Tax Benefits
As per the prevailing income tax law, you can avail of deductions on Kotak Assured Saving Plan premium payment under section 80C and 10(10D) of the income tax act, 1961. Under Section 80C, the Life Assured can claim a deduction of up to INR 1,50,000. However, in section 10(10D), the sum assured plus any bonus, which the insurer pays to the Life Assured or Nominee at maturity, surrender or death amount, will be tax-free for the claimant. In case the payable premium increases by 20% of the sum assured in any year, the payable benefits will be taxable.