Kotak POS Bachat Bima Plan is a non-linked, non-participating Life Insurance Plan that offers guaranteed maturity benefits and helps fulfill your long-term goals. Along with that, it protects your family’s future if you die during the policy term. Besides, there are several other benefits like flexible premium payment terms that you can enjoy. Amidst all these benefits, there comes a certain exclusion which you need to be mindful of. Let’s read this page further to know all.
What are the Key Benefits of Kotak POS Bachat Bima Plan?
Kotak POS Bachat Bima Plan comes with the following benefits –
- Kotak POS Bachat Bima Plan comes with two options – Life & Life Plus
- With the life option, you will get coverage for death due to any reason, while the Life Plus option will provide coverage against death due to any reason along with accidental death benefit which will be equal to the sum assured on death in case the policyholder dies due to an accident.
- The basic sum assured for both the options will be different for the same premium amount, so you should keep this in mind while choosing the plan option for you.
- Individuals will keep getting guaranteed yearly additions throughout the policy term chosen by you. 15% of the one annualized premium will accumulate at the end of each policy year.
- With the Kotak POS Bachat Bima Plan, the company will provide guaranteed loyalty additions at the time of maturity of your policy. So, with this plan, you can fulfill your savings goals along with safeguarding your family’s future.
- You can get tax benefits for the premiums payable under Section 80C and Section 10(10D) of the Income Tax Act, 1961. Also, tax benefits can change from time to time, so you need to be watchful of tax-related developments that take place.
- For the fixed policy term of 16 and 20 years, you will need to pay the premium amount for 8 and 10 years according to your convenience. Also, you can pay the premium in installments from the frequency options of Yearly, Half-yearly, Quarterly, and Monthly.
- For this policy, the company has fixed a waiting period of 90 days from the inception of the policy. However, a waiting period does not apply to death due to an accident.
Let’s Check Kotak POS Bachat Bima Plan Benefits in Detail
Now that you have understood some of the key advantages of the Kotak POS Bachat Bima Plan, you should also know them in detail. Read further to know the same.
On the survival of the policyholder till the end of the policy term, the company will pay a lump sum amount to him/her as a maturity benefit. That lump sum amount will be the sum of the following amounts.
- Basic Sum Assured for your Plan
- Accumulated Guaranteed Additions at the end of each policy year
- Guaranteed Loyalty Additions
In case the policyholder dies during the policy term, the company will pay a death benefit to the nominee. The death benefit will also depend on the waiting period. Following are the death benefits that a nominee will receive.
For Life Option –
Sum assured on Death plus Accumulated Guaranteed Yearly Additions during the Policy Term
For Life Plus Option –
If the Death happens for any reason (other than due to an accident) – Sum Assured on Death plus Accumulated Guaranteed Additions at the end of each policy year will be given.
If the Death Happens because of an accident – (2 x Sum Assured on Death) plus Accumulated Guaranteed Additions at the end of each policy year. The sum assured will be the highest of the following amounts –
- 11 times of Annualized Premium
- Basic Sum Assured plus Guaranteed Loyalty Additions
- 105% of all premium amount paid as on the date of death
- Absolute amount assured to be payable on the date of death (Basic Sum Assured)
Guaranteed Yearly Additions
Policyholders will also receive guaranteed additions at the end of each policy year throughout the policy term. The additions will accumulate at 15% of the One Annualized Premium amount.
Guaranteed Loyalty Additions
If you stick to the Kotak POS Bachat Bima Plan for a longer period, the company will also pay you loyalty additions at maturity. This addition will be a percentage of one annualized premium and will depend on the policy term chosen by you. For the policy term of 16 years, it will be 150% of the One Annualized premium, while for the policy term of 20 years, the guaranteed additions will be 175% of the one annual premium.
What is the Eligibility Criteria of Kotak POS Bachat Bima Plan?
- The entry age ranges from 12 to 45 years, while the maturity age can range from 28- 65 years. It means an individual can be a maximum of 65 years at the time of maturity.
- The policy term is fixed for 16 or 20 years, for which policyholders can choose to pay a premium for 8 and 10 years, respectively.
- The premium amount can be as low as INR 15,000 per annum. However, the maximum amount will depend on the basic sum assured (maximum of INR 10 lakh).
- The premium modal factors will vary according to the frequency options chosen by you and usually ranges from 8.8% to 100%.
- The basic sum assured will depend on several factors such as Policyholder’s age, Policy Term, Plan Options, and Maximum Basic Sum Assured.