Kotak Assured Income Plan

Overview

The Kotak Assured Income Plan is a traditional non-participating money back plan from Kotak and has death benefits and maturity benefits. This kotak life plan works well as a life insurance as well as a second source of income post a certain period after payment of premiums. It is an investment worth making for the financial security of the loved ones and the insured, since there are assured incomes paid as well as a maturity benfit also paid out at the end of the term which is 30 years. It is a win-win situation plan, where special benefits acan be acquired through 4 attracive riders.

Eligibility Conditions for Kotak Assured Income Plan

The requirements for applying for the Eligibility are:

Entry Age

0 - 60 years

Maximum Maturity Age

90 years

Premium Premium Payment Term (PPT)

Min: `15,000 p.a. Max: No Limit

Policy Term

10 years /30 years

Basic Sum Assured

10 times of Annual Premium

Premium Payment Mode

Yearly, Half yearly, Quarterly, Monthly

Premium Modal Factor

The following modal loadings will be used to calculate the installment Premium: annually – 100%, Half yearly – 51%, Quarterly – 26%, Monthly – 8.8%

Key Features of Kotak Assured Income Plan

Type

Traditional Non-Participating Money Back Plan

Basis

Individual

Coverage

  • Guaranteed Payout offered each year for a 20 year period as survival benefit.
  • In the case the insured dies prior to the policy tenure end, the sum assured is paid regardless amount is paid in full or the policy is terminated, as death benefit. I
  • The sum assured is paid to the insured when the policy matures at 104%-110%, as Maturity Benefit. It is based on the Age at Entry and is computed as 110% - 0.1% X Insured’s Age at Entry.
  • premiums paid to Rs.1,00,000 are considered for tax deduction under section 80C, every year.
  • There are 4 additional riders with this plan

Premium range

Minimum premium payable is Rs 10,000 however it also varies on the time paid in i.e. monthly, quarterly, half-yearly or annually.

Premium paying term

15 years

Premium paying frequency

Monthly, quarterly, half-yearly or annually

Surrender Value

After three years of policy completion, policy is eligible for a Guaranteed Surrender value of 30% of the premiums paid to the date of surender. This amount excudes the first year’s remiumas well as premiums paid for rider benefits. An additional amount may be paid, but it is based on sole discretion of the insurance provider.

Freelook period

The insured is offered 15 days as freelook period on policies sold through any channel except for Direct Marketing channels as per policy guidelines and will have 30 day free look period instead from the reciept date of the polcy. The polcy can be returned within 15 days / 30 Days of the receipt in the case that he/she does not agree with certain terms and conditions of the policy. He/she will be entitled for a refund amount of the premium paid after deduction of expenses on medical tests, stamp duty and as well as premium for proportionate risk for the time period of cover.

Grace period

One time premium policy, does not have a grace period.

Reinstatement

The lapsed policy can be reinstated within two years based on payment of outstanding premiums along with handling charges. If done within a period of six months there is no requirement for ‘proof of good health’unless its over six months.

Exclusion

If the insured person commits suicide within a year of the policy, the nominee will be paid upto 80% of the single premium paid.

Riders

There are four riders that can be used for extended benefits on this plan.

Benefits of Kotak Assured Income Plan

Here are the basic benefits of the policy:

  • The policy offers a Guaranteed Payout each year for a period of 20 years
  • This plan also offers 104% to 110% of the Sum Assured as Maturity Benefit
  • Death benefit includes the Sum Assured paid ou to the nominee, regardless of the amount paid during the tenure
  • There are additional riders available with this plan

How the Plan Works?

The plan requires the policy holder to pay premiums for 15 years straight although the policy continues for 30 years. But from the 10th policy year a percentage of the amount considered for Sum Assured is paid out to the policy holder till the policy term is over and the policy holder does not die. The Survival Benefit is based on the Annual Premium paid. A maturity benefit is paid to the insured of 104% to 110% of the amount Assured when the policy term ends. The death benefit is paid out immediately at the event of the polic holder’s death and the policy is terminated. The death benefit is based as the sum assured for the policy. an option of 4 riders are available in case the individual wishes to add more benefits.

Premium Payment

The follwoing is a basic idea of how the premium payment amount and the eligible amounts iassured as well as payouts are:

Age (Years)

30

35

25

Annual Premium (Rs.)

20000

40000

80000

Half Yearly# Premium (Rs.)

10200

20400

40800

Basic Sum Assured (Rs.)

200000

400000

800000

Cumulated Assured Annual Income (Rs.)

273000

576000

1212000

Maturity Benefit (Rs.)

214000

426000

844000

Sum Assured on death (Rs.)

214000

426000

848000

Riders

There are four riders available on this plan for added benefits:

  • Kotak Accidental Death Benefit (ADB, UIN: 107B001V02) - In the case the of an accidental death, the insured’s nominee is paid an lump sum amount.
  • Kotak Permanent Disability Benefit (PDB, UIN: 107B002V02) - Installments shall be paid incase the injured is permanently disabled resulting from an accident.
  • Kotak Life Guardian Benefit (LGB, UIN: 107B012V02) - Future premiums will be paid by post death of insured.
  • Kotak Accidental Disability Guardian Benefit (ADGB, UIN: 107B011V02) - Future premiums will be paid by Kotak Life Insurance post permenant disability of the insured.

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