Investment Plans 231 views December 4, 2020

Kotak Premier Life Plan is a limited premium paying non-linked participating whole life plan that offers you financial protection till the age of 99 years. Under this plan, you will get a simple reversionary bonus starting from the first policy year till the end of the premium payment term and a cash bonus after the term expires. You have an option to either accumulate or receive the bonus payouts, besides enhancing the protection value by adding riders to the Kotak Premier Life Plan. You can get more value for money via a premium discount on High Sum Assured at maturity and for female lives. The policyholder is also eligible for tax benefits as per the prevailing income tax laws.

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Benefits of Kotak Premier Life Plan

Check the list of benefits of Kotak premier life plan

Maturity Benefit

If you survive till the end of the policy term, you will receive a handsome amount at Maturity. The Sum Assured on maturity includes bonus and additions like Cash Bonus, Accrued Paid-Up Additions, and Terminal Bonus (if any).

Survival Benefit

Your Kotak Premier Life Plan survival benefit will depend on your chosen bonus option at the time of policy inception. You can change the bonus option at inception by giving a written request to the insurer within 3 months before the end of the premium payment term.

Cash Bonus Option

If you choose this option, an accrued Simple Reversionary Bonus will be payable to the insured person at the end of the premium payment term. Further, after the expiry of the premium payment term, Cash Bonus becomes payable till the policy term, death, or surrender, whichever is earlier.

An accrued Simple Reversionary Bonus is utilized to purchase Paid-Up Additions under this option. And, at the end of each policy anniversary after the premium payment term, a Cash Bonus is going to be utilized to purchase Paid-Up Additions (PUA).

In Kotak Premier Life Plan, a Paid-Up Addition is an additional guaranteed benefit that is payable on death or maturity. The formula for calculating Paid-Up Addition is –

Paid-Up Addition Factor x Accrued Simple Reversionary Bonus/Cash Bonus

You can encash the accrued Paid-up Additions as and when required. And the balance of Paid-Up Additions will continue to participate in future profits (Maturity & Death benefit). The encashment is available to an insured from the expiry of the premium payment term till the end of the policy term.

Death Benefit

In case you die in an unfortunate event during the premium payment term, the nominee will receive Sum Assured on Death plus the Accrued Simple Reversionary Bonuses and Terminal Bonus (if any) as per the terms and conditions of the policy. However, in the case of an unfortunate event of the insured death after premium payment term but under the policy term, the nominee will get the Sum Assured on Death plus Accrued Paid-Up Additions and Terminal Bonus (if any).

Kotak Premier Life Plan Sum Assured on Death is the highest of the following:

  1. 11X Annualized Premium
  2. Sum Assured on Maturity
  3. 105% of paid premiums paid till the date of death (except for the applicable GST, cess applicable, and rider premium, if any)

Riders

For customer convenience, Kotak Life provides you an option to customize the protection plan with the below mentioned optional Riders:

  1. Kotak Term Benefit: Additional protection over and above the Death Benefit of the base plan.
  2. Kotak Accidental Death Benefit: A lump sum amount is payable if the insured dies due to an accident.
  3. Kotak Permanent Disability Benefit: You will receive installments of claim if you have become disabled due to an accident.
  4. Kotak Life Guardian Benefit: If you die, the remaining premiums will be paid on your behalf.
  5. Kotak Accidental Disability Guardian Benefit: The remaining premiums will be paid on your behalf in the case of an accidental disability.

Suicide Exclusion

80% of your paid premium is entitled to the nominee if you die due to suicide within 12 months of inception. And in case you revive your policy within 6 months from the date of the first unpaid premium and if you commit suicide and die during this period, the nominee will receive the death benefit as usual. However, if you have done revival after 6 months from the date of the first unpaid premium, the nominee will receive any of the following, whichever is higher:

  1. 80% of the total paid premium till the date of death
  2. Or the policy surrender value (if any)

Important Notes-

  1. Entry Age: 3-65 years
  2. Premium Payment Term: 8, 12, 15, and 20 years
  3. Premium Payment Mode: Yearly, Half-yearly, Quarterly, Monthly
  4. Policy Term: 99 years minus Entry Age
  5. Free Look Period: 15 days if the policy is sold through all channels except for Distance Marketing. And 30 days if the policy is sourced through Distance Marketing.
  6. Tax Benefit: You are eligible for Tax benefits under section 80(C) and 10(10D) of the Income Tax Act, 1961.
  7. Grace Period: 30 days is provided (Yearly, Half-yearly, Quarterly mode) to you where you can pay the due premium without any late charge. However, this period will be 15 days if you have been using a monthly payment mode.

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