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Investment Plans 2342 views December 30, 2020
Kotak Guaranteed Savings Plan is a non-linked non-participating life insurance plan that provides guaranteed additions after the limited premium payment term. This is a savings and protection oriented plan with guaranteed benefits. So, be assured of your life with Kotak Guaranteed Savings Plan. With this life insurance, you will get a guaranteed loyalty addition at the end of the policy term. Let’s read this page and know more about this savings cum life insurance policy.
Table of Contents
Kotak Guaranteed Savings Plan Benefits
Guaranteed Additions
When the Premium Payment Term completes, the Guaranteed Additions will start accruing from the end of the next policy year annually till the end of the last policy year. Guaranteed Additions are a percentage of the annualized premium. So, the rates shall vary as per your Premium Payment Term & Policy Term, such as:
| Premium Payment Term | Policy Term | Guaranteed Addition Rate |
|---|---|---|
| 7 | 14 | 25% |
| 8 | 16 | 30% |
| 10 | 15 | 32% |
| 10 | 20 | 35% |
Accrual Duration for the Guaranteed Addition:
| Premium Payment Term | Policy Term | Guaranteed Addition Duration |
|---|---|---|
| 7 | 14 | From the End of the 8th Policy Year till the End of the 14th Policy Year |
| 8 | 16 | From the End of the 9th Policy Year till the End of the 16th Policy Year |
| 10 | 15 | From the End of the 11th Policy Year till the End of the 145th Policy Year |
| 10 | 20 | From the End of the 11th Policy Year till the End of the 20th Policy Year |
Tip – Choose a longer policy term to get higher Guaranteed Additions.
Guaranteed Loyalty Addition
Guaranteed Loyalty Addition is a percentage of the annualized premium and is payable to you at maturity. And the Guaranteed Loyalty Addition rates are based on your Annualised Premium band, Premium Payment Term and Policy Term.
| Annualized Premium Band | Premium Payment Term | Policy Term | Guaranteed Loyalty Addition |
|---|---|---|---|
| < INR 50,000 | 7 | 14 | 100% |
| >= INR 50,000 & < INR 1 Lakh | 8 | 16 | 148% |
| > = INR 1 Lakh | 10 | 15 | 172% |
| > = INR 1 Lakh | 10 | 20 | 180% |
Tip – Save a higher amount for a longer tenure and get a higher Guaranteed Loyalty Addition.
Maturity Benefit
Basic Sum Assured + Accrued Guaranteed Additions + Guaranteed Loyalty Addition at the end of the policy term.
Death Benefit
Your nominee will get the Sum Assured on Death + Accrued Guaranteed Addition if you die during the policy term. Here, the Sum Assured on Death is the highest of the following: 11X Annualized Premium + Extra Premium), if any, Basic Sum Assured + Guaranteed Loyalty Addition or 105% of all paid premiums + Extra Premium, if any.
Riders
You can enhance your life cover by adding any of the following riders to Kotak Guaranteed Savings Plan.
Kotak Term: It allows an additional death cover on your life besides the base plan Death Benefit.
Kotak Accidental Death: The company pays a lump sum to the nominee when you die due to an accident. And this amount will be in addition to the Death Benefit under the base plan.
Kotak Permanent Disability: If an accident leads you to permanent disability, 120% of the Rider Sum assured will be paid to you over five years.
Kotak Life Guardian: When the Policyholder dies during the policy term, future premiums will be waived off and the base policy will continue with the same benefits.
Kotak Accidental Disability Guardian: In case of an accidental disability of policyholder/life insured, all the future premiums will be waived off and the base plan will continue as it is without any change.
Tax Benefits
Under Section 80C and Section 10(10D) of the Income Tax Act, 1961, you will get tax benefits as per the prevailing tax laws.
Kotak Guaranteed Savings Plan Eligibility
- The entry age for the policy is as on your last birthday, which ranges from 3-60 years
- The maturity age for the policy will be as on your last birthday and it ranges from 18-75 years.
- The policy term is fixed for the Kotak Guaranteed Savings Plan, and you can choose from 14 years, 15 years, 16 years and 20 years.
- A minimum premium for this life insurance plan is INR 20,000 per annum.
- Premium Payment Term (PPT) is 7 years, 8 years, 10 years and 10 years for Kotak Guaranteed Savings Plan.
- The policy allows yearly, half-yearly, quarterly and monthly premium payment modes.
- The following modal loadings are going to be used to calculate installment premium: yearly – 100%, half-yearly – 51%, quarterly – 26% and monthly – 8.8%.
- If Kotak Guaranteed Savings Plan has been taken on the life of a minor, it will automatically vest on him/her with effect from the date of completion of 18 years of age and after that, the life insured will become the policyholder.
- A grace period of 30 days is allowed if you have yearly, half-yearly, quarterly premium payments. Otherwise, a 15 day grace period on monthly premium payment. A grace period is a time that you get to pay your premium after its due date.
- Loans can be borrowed against this plan up to 50% of its Surrender Value limit.
- If the life assured commits suicide and dies during the 1 policy year from the date of commencement or revival, the nominee will receive either 80% of the paid premiums or the policy surrender value as on the date of death, whichever is higher.
- A free look period of 15 days is provided to you where you can review the terms and conditions of Kotak Guaranteed Savings Plan. This free look period can extend to 30 days if your policy has been sourced via distance marketing.