Investment Plans 213 views January 5, 2022

Kotak Classic Endowment Plan is a savings insurance policy that helps you protect your family financially. The highlights of this endowment insurance policy are –

  • Maturity Benefit
  • Death Benefit
  • Rider Benefit
  • Bonus

You can learn more about the benefits of the Kotak Classic Endowment Plan on this page below.

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Benefits of Kotak Classic Endowment Plan

Kotak Life Insurance provides you and your nominee the below-mentioned benefits under the plan.

Death Benefit In Case of Your Demise During the Policy Term

If you die before the maturity date and after the risk commencement, the insurance company will pay the following to your nominee –

i. Sum assured on death
ii. Accrued simple reversionary bonuses (if any)
iii. Terminal bonus (if declared by the company)
The sum assured on death is higher of –
i. Sum Assured on maturity
ii. 11X the annualized premium.+ extra premium (if any)
iii. 105% of total paid premiums (excluding extra premium, if any)

Maturity Benefit Payable Upon Survival till the End of the Policy Tenure

When you survive till the end of the policy term, the company will pay you the following –

i. Sum assured on maturity (Guaranteed amount payable on maturity if all the due premiums have been paid in full)
ii. Accrued simple reversionary bonuses (if any)
iii. Terminal bonus (if declared by the company)

Customization Options Under Kotak Classic Endowment Plan

The insurance company allows you to add any of the following riders to the Kotak Classic Endowment Plan to enhance your coverage.

  • Kotak Accidental Death Benefit
  • Kotak Permanent Disability Benefit
  • Kotak Term Benefit
  • Kotak Life Guardian Benefit
  • Kotak Accidental Disability Guardian Benefit
  • Kotak Critical Illness Plus Benefit

Your rider plan term is as mentioned in the document and is subject to the base policy premium payment term and policy term, and maturity age. And you can’t add Kotak Life Guardian Benefit and Kotak Accidental Disability Guardian Benefit Rider if the sum of –

  • Age of the Proposer
  • Premium Payment Term

is more than the maximum maturity age allowed under the riders. These rider terms will be the same as the outstanding premium payment term of the base plan, subject to a maximum of five years. Riders will cease at the end of the grace period based on their terms and conditions. You need to pay the rider premium along with the basic premium. The sum assured under each rider shouldn’t exceed the base policy sum assured. The sum of all rider premiums, excluding Kotak Critical Illness Plus Benefit Rider, shouldn’t be more than 30% of the base premium. You can add a rider to the Kotak Classic Endowment Plan either at inception or anniversary.

Bonuses Declared by the Kotak Mahindra Life Insurance

Under the Kotak Classic Endowment Plan, the following benefits are available –

Simple Reversionary Bonus – At the end of every financial year, it is declared by the company. This is expressed as a percentage of the sum assured on maturity. And you should know that these types of bonuses are not guaranteed. These depend on the profits emerging in the participating fund set up by the insurance company. You can get the bonus if you have paid all your due premiums.

No simple reversionary bonuses are declared on Reduced Paid-Up policies as they do not participate in the future profits of the company. However, accrued bonuses before the reduced paid-up status will be payable to either on death or maturity, whichever is earlier.

Terminal Bonus – In case of your death, your nominee will get a terminal bonus too, provided all due premiums have been paid in full for at least 10 years. This may be declared for all policies maturing, as a percentage of sum assured on maturity. You won’t get this bonus if your policy is in reduced paid-Up status or surrendered.

Eligibility Criteria for Kotak Classic Endowment Plan

The minimum age at entry is 0 years under the Kotak Classic Endowment Plan, and the minimum maturity age is 18 years. And the maximum entry and maturity age is shown in this table below.

Premium Payment OptionsPremium Payment Term (In Years)Maximum Entry
Age (In Years)
Maximum Maturity
Age (In Years)
Regular Premium 155470
165370
15 to 3070 - Policy Term70
Limited Premium 75873
Policy Term - 56073

Free Look Period

In case you do not accept the policy terms and conditions, you can return it stating the reasons within 15 or 30 days of the free look period. To submit the cancellation request, go to your nearest Kotak Life Insurance branch, or send it directly to the Head Office.

Upon getting the letter along with the original policy document, the company refunds the paid premium after deducting the proportionate risk premium, medical expenses and stamp duty.

You can’t revive, reinstate or restore the policy after the cancellation. If you buy the Kotak Classic Endowment Plan through Insurance Repository (IR), the free look period of 15 or 30 days will commence from the date you’ll receive an email from the IR.

Whereas, in the case of distance marketing, the free look period is 30 days. Distance marketing modes include –

  • SMS
  • Email
  • Internet and interactive television (DTH)
  • Postal mail, newspaper and magazine inserts

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