Investment Plans December 30, 2020

Kotak Premier Endowment Plan is a long-term saving cum protection plan that helps you cope with unfortunate contingencies and save your future financial needs. Under this plan, the life assured gets guaranteed additions at 5% per annum of the basic sum assured in the first 5 policy years and bonuses from the sixth year onward. Here, you can select from multiple premium payment terms and can get additional protection through a wide range of riders. Let’s read this page and know more about this Kotak Endowment life insurance plan.

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Kotak Premier Endowment Plan Benefits

Life Assured can claim several benefits during and at the end of the policy term which is as follows:

A maturity benefit will be payable to you at the end of the policy term, and this Kotak Endowment life insurance plan provides you the flexibility of receiving your maturity benefit either as a lump sum or a part of the maturity up to 50% in a lump sum and the balance in equal installments over 5 or 10 years.

If you die during the policy term, your nominee becomes eligible to claim a death benefit from the Kotak Premier Endowment Plan. Here, the nominee has an option to take up the death benefit in a lump sum payout of up to 50% and the balance in equal installments over the next 5 or 10 years.

When all your due premiums have been paid, the Minimum Death Benefit during the policy term will be as follows as per your age at entry:

Note – The maturity & death benefit equal installments will be inclusive of an interest rate of 4% p.a.

Additional Features & Benefits from Kotak Premier Endowment Plan

We all love some extra coverage, discount or features. Thankfully, this endowment plan from Kotak has that in plenty. Let’s take a look!

Convenient Premium Payment Term and Mode

You can choose the premium paying term and mode from 5 years, 7 years, 10 years, 15 years or throughout the policy term. And you can pay these premiums annually, half-yearly, quarterly or monthly. You will have the option to change the payment mode on policy anniversaries.

Optional Riders

  1. Kotak Term: An additional protection over and above your base policy Minimum Death Benefit.
  2. Kotak Accidental Death: A lump sum is payable in case of accidental death of the life assured.
  3. Kotak Permanent Disability: Installment payment upon admission of a claim if the life assured becomes disabled due to accident.
  4. Kotak Critical Illness: A part of your Basic Sum Assured up to 50% will be payable on the admission of a claim on critical illness.
  5. Kotak Life Guardian: Once the policyholder dies, the remaining premiums on Kotak Premier Endowment Plan will be waived off.
  6. Kotak Accidental Disability Guardian: Remaining premiums will be waived on behalf of the policyholder in case of an accidental disability.

Loan Facility

You can borrow a loan against this Kotak Endowment Life Insurance Plan up to 80% of its surrender value.

Reduced Paid-Up (RPU)

If the Kotak Premier Endowment Plan acquires a surrender value and the subsequent premiums are not paid within the grace period of the policy, it will be converted into a Reduced Paid-Up policy by default. And this may impact your benefits such as:

The payout on maturity: The payable benefit at maturity will be the Reduced Paid-up Basic Sum Assured plus the accrued Guaranteed Additions & bonuses if any.

Reduced Paid-Up Basic Sum Assured = Basic Sum Assured × [(Total Paid Premiums/Total Payable Premiums the entire policy term)].

The payout on death: On the death of the life insured, the payable benefit will be the Reduced Paid-up Death Benefit plus the accrued Guaranteed Additions & bonuses, if any.

Reduced Paid-Up Death Benefit is Total paid premiums/Total payable premiums, during the entire policy term) x Minimum Death Benefit.

Discount on High Sum Assured

A premium discount is provided to the life assured for Basic Sum Assured of INR 5 lakhs & above. And the discount rate will be INR 2 per INR 1,000 Basic Sum Assured.

Bonuses

  1. Simple Reversionary Bonus: The company declares a bonus at the end of each financial year as a percentage of the Basic Sum Assured. These bonuses are starting to accrue from the sixth policy year till the end of the Policy Term. It will be payable to you either with your maturity or death benefit.
  2. Interim Bonus: In case of a claim, part-way through a financial year or before the declaration of the Simple Reversionary Bonus, the claim is payable to you with an interim bonus (if applicable) at a rate as decided by the company.
  3. Terminal Bonus: Kotak Life Insurance may decide to pay a Terminal Bonus in case of death after ten full policy years. The terminal bonus may also be payable on maturity and it will be calculated as a percentage of the Basic Sum Assured. Terminal Bonuses aren’t payable on paid-up or surrendered policy.

Kotak Premier Endowment Plan Eligibility

  1. Your entry age should be between 18-60 years
  2. Your maturity age can be a maximum of 70 years at the time of policy maturity.
  3. The policy term is 10-30 years for this Kotak Endowment Life Insurance Plan.
  4. The minimum premium amount for regular pay is INR 8,000, whereas it is INR 15,000 for limited pay.
  5. A 30-day grace period will apply if you have annually, half-yearly, quarterly premium modes. Otherwise, a 15 day grace period will apply when you have a monthly premium mode.
  6. A 15-day free look period to review the terms and conditions of this Kotak Endowment Life Insurance Plan. On the other hand, if this policy is sourced via distance marketing mode, the free look period will be 30 days.
  7. The nominee will get either 80% of the paid premiums or surrender value of the policy if the life assured dies due to suicide within one year from the date of policy commencement or revival.

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