Overview
Human beings strive and work hard primarily for one reason, survival and sustenance. Our lives are often intertwined with others, where how we live defines how others around us live. Protecting ourselves and our families is a prime goal we hope to achieve, a goal which is aided by life insurance. Kotak Assured Income Accelerator is a plan designed for hardworking individuals who wish to earn a regular saving every year, helping them grow every step. This is a guaranteed income anticipated endowment insurance plan which ensures finance doesn't stop you and your family from accomplishing certain dreams.
Eligibility Criteria of Kotak Assured Income Accelerator Plan
|
Entry Age |
Minimum – 0 years Maximum – This varies according to the premium payment term (PPT)
|
|
Maturity Age |
Minimum – 18 years Maximum – 85 years |
|
Basic Sum Assured |
10 times the annual premium |
|
Annual Premium |
Minimum – Rs 15,000/- Maximum – No upper limit |
Key Features of Kotak Assured Income Accelerator Plan
|
Type |
Guaranteed income anticipated endowment insurance scheme/plan |
|
Coverage |
Death Benefit – In the event of death of life insured during policy term, the nominee receives the Sum assured which varies depending on the entry age of an individual. This Sum Assured is the higher of basic sum assured, guaranteed maturity benefit or 11 times the annual premium in case the entry age is under 50 years. In cases where the entry age is over 50 years, this sum assured will be the higher of either the basic sum assured, guaranteed maturity benefit or 7 times the annual premium. Survival Benefit – Individuals are entitled to a guaranteed income every year of this plan. This income depends on the income rate and varies according to the premium payment term. Maturity Benefit – A certain percentage of the Basic Sum Assured is given as the Guaranteed Maturity Benefit. This amount varies according to the entry age of a policyholder and the policy term. |
|
Basis |
Individual |
|
Premium paying term |
7 pay for 15 years 10 pay for 20 years 15 pay for 30 years |
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Premium paying modes |
Monthly, quarterly, half-yearly and yearly |
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Payout period |
7 PPT – 8 annual payouts, beginning from the end of 8th policy year 10 PPT – 10 annual payouts, beginning from the end of 11th policy year 15 PPT – 15 annual payouts, beginning from the end of 16th policy year |
|
Renewability |
Lapsed policies can be renewed within 2 years of first unpaid premium by paying late payment charges and clearing all outstanding premium payments. |
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Grace period |
Yearly, half yearly and quarterly mode – 30 days Monthly mode – 15 days |
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Loans |
Loans upto 80% of surrender value can be obtained under this policy. |
|
Free Look Period |
A 15 day period is provided (30 days in case of policy sold through distance marketing) as free look period wherein a policyholder can return the policy if he/she does not agree with any terms and conditions of the plan. |
Advantages of Kotak Assured Income Accelerator Plan
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Tax Benefits |
Policyholders get tax benefits on paid premiums under Section 80C of IT Act. Benefits received are also eligible for certain tax exemptions under Section 10 (10D). |
|
Assured Income |
Policyholders get assured income every year during the payout term. |
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Income Boosters |
Policyholders get a 5-7% increase in their assured income every year. |
|
Death Benefit |
Death Benefit will be paid, even if Assured/guaranteed income is already paid. |
|
Customization |
Policyholders can choose to customise their policies with additional riders. |
How The Plan Works
Policyholders are required to pay premiums every year for the premium payment term opted by them. These premiums are used to determine the Basic Sum Assured and the Guaranteed Income they are eligible for. The guaranteed income will be paid on the expiry of premium period term during the payout period. Policyholders will receive the guaranteed maturity benefit on Maturity, which will be paid along with the final guaranteed income installment.
For example, Mr. Kumar, aged 35 opts for this plan with an annual premium of Rs 60,000 with a premium payment term of 15 years. Under this plan he will receive a guaranteed income from the 16th year onwards at an interest of 13%, as indicated in the table below.
|
Year |
Income (Rs) |
|
16 |
78000 |
|
20 |
99840 |
|
25 |
127140 |
|
30 (last installment + maturity benefit) |
346440 |
Premium Payment
|
Guaranteed Maturity benefit (% of sum assured) |
||
|
Entry Age (Years) |
15 & 20 years policy |
30 years policy term |
|
25 |
32.50% |
33.50% |
|
30 |
31.75% |
32.75% |
|
35 |
31.00% |
32.00% |
|
40 |
27.25% |
27.00% |
Riders
Kotak Life Assured Income Accelerator plan comes with different riders, which can be availed according to individual preferences.
- Kotak Term Benefit – In the event of death of life insured, an additional rider sum would be paid over and above the death benefit.
- Kotak Accidental Death Benefit – In case of accidental death of life insured, additional sum assured will be paid over and above the death benefit.
- Kotak Permanent Disability Benefit – This offers a benefit (in installments) in case of permanent disability of life insured due to an accident.
- Kotak Life Guardian Benefit – All outstanding premiums will be waived and paid by Kotak Life Insurance in case of death of policyholder.
- Kotak Accidental Disability Guardian Benefit – All outstanding premiums are waived off and paid by Kotak Life Insurance in case of accidental disability.
Rider premium will need to be paid additionally in order to avail these benefits.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017
