Investment Plans 328 views December 5, 2020

With the Kotak Premier Income Plan from Kotak Life, you can get a guaranteed second income to fulfill your dream and aspirations of your family. This plan can help you in achieving your savings goals as well as protection for your loved ones in case you are not around. One of the best features of this plan is its guaranteed income returns that you get immediately after the premium payment term. This is a limited pay participating life insurance plan that also provides different kinds of bonuses at the end of the policy term. Let’s read this article to know more about this insurance plan.

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What are the Key Benefits of Kotak Premier Income Plan?

Want to choose the Kotak Premier Income Plan for yourself? Well, before that, you should know some of the key benefits of this plan that are mentioned below. Have a look!

  1. With the Kotak Premier Income Plan, individuals will start to receive guaranteed income right after the completion of their premium payment term. So, an individual can start getting income as soon as the 9th year of the policy.
  2. Female Policyholders and individuals who choose to pay a higher premium will get rewarded in the form of an enhanced sum assured rate up to 8%.
  3. Individuals will receive different kinds of bonuses that will be accumulated throughout the policy term chosen by them. These bonuses are Simple Reversionary Bonus, Interim Bonus and Terminal Bonus.
  4. If you want to maximize your benefits, you can also opt for the additional riders such as Term Rider, Accidental Death Benefit Rider, Permanent Disability Benefit Rider, Guardian Benefit and Accidental Disability Guardian Benefit Rider.
  5. With the Section 80C and Section 10(10D) of the Income Tax Act, 1961, you can also enjoy tax benefits up to INR 1,50,000.
  6. Kotak Life also provides flexibility in premium payment towards your policy; you can choose to pay it in different modes such as Yearly, Half-yearly, Quarterly and Monthly.

Benefits of Kotak Premier Income Plan in Detail

You saw some of the key benefits of Kotak Premier Income Plan in the previous section. In this section, we are explaining those benefits in detail so that you can understand them better.

Death Benefit

During the policy term, if a policyholder dies due to an unfortunate event, the company will pay the following as a death benefit to the nominee.

  1. Accumulated Simple Reversionary Bonus (if any)
  2. Interim Bonus (if any)
  3. Terminal Bonus (if any)
  4. Current Value of Outstanding Guaranteed Monthly Income for the remaining policy year (if you have chosen the monthly frequency as the guaranteed income payout)

Sum Assured on Death will be highest of the following amounts –

  1. 11 times the annualized premium (premium payable in a year) including extra premium (if any)
  2. 105% of the all premium towards your policy including extra premium (if any) as on the date of death
  3. Absolute amount assured to be paid on death (Basic Sum Assured amount)

Maturity Benefit

At the end of the policy term i.e. maturity, the individual will receive an accumulated simple reversionary bonus along with a terminal bonus. The Simple Reversionary Bonus would come as a percentage of the sum assured. This amount will start to accumulate from the end of the first policy year throughout the policy term, and it will be paid either on maturity or death. You will get the terminal bonus, which accounts for a percentage of the sum assured, at the end of the policy term. Besides, you will get an Interim Bonus, which comes as a percentage of the sum assured.

Additional Increase in the Sum Assured Rates

For female policyholders and individuals who will pay a higher premium amount, Kotak Life will provide enhanced sum assured rates. This increase will be a percentage of the base sum assured rate. You can check the rate below.

Premium BandsIncrease percentage in the Base Sum Assured
Male PolicyholdersFemale Policyholders
Annualised Premium less than INR 40,000NIL2%
Annualised Premium between INR 40,000 & less than INR 75,0002%4%
Annualised Premium of INR 75,000 or more6%8%

Kotak Premier Income Plan Eligibility Criteria

A Policyholder can choose Kotak Premier Income Plan only if he/she fulfills a set of conditions that you can see below.

  1. The minimum entry age for this policy is 3 years; while the maximum age will depend on the premium payment term, it can be 50 or 55 years
  2. The maximum age for entry into the policy ranges from 18 years to 78 years
  3. The policy term for Kotak Premier Income Plan is fixed, and an individual can choose from different policy term options of 15, 19, and 23 years for a premium payment term of 8, 10 and 12 years, respectively.
  4. The minimum premium amount stands at INR 25,000 for a 12-year premium payment term, while for an 8 & 10-year premium payment term, this amount can be INR 30,000. However, there is no maximum limit on this amount.
  5. The sum assured amount will depend on different factors such as the Premium amount, age of policyholders, their gender, premium payment term and policy term.
  6. Individuals can choose to pay the premium amount at any of these intervals – Yearly, Half-yearly, Quarterly,and Monthly. The modal factor will be 100%, 51%, 26% and 8.8% respectively.

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