Overview
The Kotak Premier Moneyback Plan is a plan that doesn’t just provide life insurance cover, but also provides regular payouts that make this a good plan to use in case of planned major expenses. It also has no upper limit on the sum assured under this kotak life insurance plan which means that as long as you can afford the premium, you can take any cover amount that you like. It also brings the policyholder tax benefits and the advantage of maturity bonuses that end up in a total payout of 110% to 130% of the basic sum assured.
Eligibility Conditions of Kotak Premier Moneyback Plan
|
Minimum age |
|
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Maximum maturity age |
The maximum maturity age is 75 years. |
Key Features of Kotak Premier Moneyback Plan
|
Type |
This is a limited pay participating savings and protection plan. |
|
Sum assured |
|
|
Coverage |
Death benefits: In case of the death of the policyholder, the sum assured according to age will be paid. It will be about 105% of the premiums paid.
Maturity benefits: The plan provides regular payments throughout the tenure of the policy. When the policy matures, the policyholder will get the balance of the basic sum assured in addition to acquired reversionary bonus, terminal bonus and maturity additions. |
|
Basis |
Individual policy |
|
Premiums |
The premiums will depend on the sum assured. |
|
Premium paying term |
8 years, 10 years and 12 years |
|
Premium paying modes |
Annual, half yearly, quarterly and monthly |
|
Premium modal factor |
This is how the annual premium payable will be calculated based on the paying mode:
|
|
Policy validity |
The policy validity will be the policy term provided all premiums are paid. |
|
Renewability |
NA |
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Bonuses |
|
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Other features |
|
|
Add-on covers / Riders |
This policy can be couples with 3 additional riders. |
Benefits/Advantages of Kotak Premier Moneyback Plan
Some of the advantages of taking this policy are:
- The premiums paid for the policy are eligible for tax benefits under section 80C of the IT Act.
- The death/maturity benefits received from this policy are eligible for tax benefits under section 10(10D) of the IT Act.
- There is a discount, on the premiums, of Rs. 2 for every Rs. 1,000 of the sum assured if the sum assured is in excess of Rs. 5 lakhs.
- Once the policy has reached surrender value if additional premiums are not paid, the policy gets converted to a paid up one at a reduced value instead of lapsing.
How the Plan Works?
This is a savings plan that pays the policyholders at regular intervals. The payment intervals will depend on the tenure of the policy but it generally ends up paying 110% to 130% of the premiums paid by the investor, over the duration of the policy. It also has two aspects to the benefits; one is the guaranteed benefits and the other is the non-guaranteed benefits. This can be best understood through an example.
Mr. Raj is 25 years old and wants to invest in this plan and is looking for a sum assured of Rs. 10 lakhs. He prefers to pay the premium annually via cheques and has chosen the policy term of 16 years which means that his premium paying term will be 8 years. he is also not a smoker, nor does he consume any other form of tobacco. Based on these details, his annual premium comes up to Rs. 1,44,450. The detailed breakup of his policy will look like so:
|
Details |
Guaranteed benefits |
Non-guaranteed benefits |
||||||||||
|
Benefits at 4% |
Benefits at 8% |
|||||||||||
|
End of Year |
Annualized Premium |
Sum Assured |
Survival Benefits |
Maturity Additions |
Accrued Reversionary Bonus |
Terminal Bonus |
Total Survival Benefits^ |
Total Death benefit |
Accrued Reversionary Bonus |
Terminal Bonus |
Total Survival Benefits^ |
Total Death benefit |
|
1 |
1,44,450 |
15,88,950 |
0 |
0 |
9,000 |
0 |
0 |
15,97,950 |
30,000 |
0 |
0 |
16,18,950 |
|
2 |
1,44,450 |
15,88,950 |
0 |
0 |
18,000 |
0 |
0 |
16,06,950 |
60,000 |
0 |
0 |
16,48,950 |
|
3 |
1,44,450 |
15,88,950 |
0 |
0 |
27,000 |
0 |
0 |
16,15,950 |
90,000 |
0 |
0 |
16,78,950 |
|
4 |
1,44,450 |
15,88,950 |
2,00,000 |
0 |
36,000 |
0 |
2,00,000 |
16,24,950 |
1,20,000 |
0 |
2,00,000 |
17,08,950 |
|
5 |
1,44,450 |
15,88,950 |
0 |
0 |
45,000 |
0 |
0 |
16,33,950 |
1,50,000 |
0 |
0 |
17,38,950 |
|
6 |
1,44,450 |
15,88,950 |
0 |
0 |
55,125 |
0 |
0 |
16,44,075 |
1,83,750 |
0 |
0 |
17,72,700 |
|
7 |
1,44,450 |
15,88,950 |
0 |
0 |
65,250 |
0 |
0 |
16,54,200 |
2,17,500 |
0 |
0 |
18,06,450 |
|
8 |
1,44,450 |
15,88,950 |
2,00,000 |
0 |
75,375 |
0 |
2,00,000 |
16,64,325 |
2,51,250 |
0 |
2,00,000 |
18,40,200 |
|
9 |
0 |
15,88,950 |
0 |
0 |
85,500 |
0 |
0 |
16,74,450 |
2,85,000 |
0 |
0 |
18,73,950 |
|
10 |
0 |
15,88,950 |
0 |
0 |
95,625 |
0 |
0 |
16,84,575 |
3,18,750 |
0 |
0 |
19,07,700 |
|
11 |
0 |
15,88,950 |
0 |
0 |
1,06,875 |
0 |
0 |
16,95,825 |
3,56,250 |
0 |
0 |
19,45,200 |
|
12 |
0 |
15,88,950 |
2,00,000 |
0 |
1,18,125 |
0 |
2,00,000 |
17,07,075 |
3,93,750 |
0 |
2,00,000 |
19,82,700 |
|
13 |
0 |
15,88,950 |
0 |
0 |
1,29,375 |
0 |
0 |
17,18,325 |
4,31,250 |
0 |
0 |
20,20,200 |
|
14 |
0 |
15,88,950 |
0 |
0 |
1,40,625 |
0 |
0 |
17,29,575 |
4,68,750 |
0 |
0 |
20,57,700 |
|
15 |
0 |
15,88,950 |
0 |
0 |
1,51,875 |
0 |
0 |
17,40,825 |
5,06,250 |
0 |
0 |
20,95,200 |
|
16 |
0 |
15,88,950 |
4,00,000 |
1,00,000 |
1,65,375 |
36,800 |
7,02,175 |
17,54,325 |
5,51,250 |
1,61,600 |
12,12,850 |
21,40,200 |
* These figures are indicative. Actual return and benefits under this plan may depend on the market situation and performance.
Premium Payment
Going with the example provided above of a premium payment of 8 years has been illustrated below.
|
End of Year |
Annualized Premium |
|
1 |
1,44,450 |
|
2 |
1,44,450 |
|
3 |
1,44,450 |
|
4 |
1,44,450 |
|
5 |
1,44,450 |
|
6 |
1,44,450 |
|
7 |
1,44,450 |
|
8 |
1,44,450 |
Riders
There are three riders that can be taken with this policy. They are:
- Kotak Term Rider
The Kotak Term Rider can be used to enhance the sum assured provided the parent policy.
- Kotak Life Guardian Benefit
This rider provides for the payments towards the policy in case the policyholder passes away before all the premiums are paid.
- Kotak Accidental Disability Guardian Benefit
This is a rider similar to the Life Guardian Benefit, in that if the policyholder is left disabled by an accident then the remaining premiums towards the policy will be paid by Kotak life insurance.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017
