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  • Kotak Premier Moneyback Plan

    Kotak Life Insurance

    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

    • The minimum entry age is 2 years
    • The maximum entry age depends of the policy tenure
      • For 16 years the maximum age is 59 years.
      • For 20 years the maximum age is 55 years.
      • For 24 years the maximum age is 51 years.

    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

    • The minimum sum assured is Rs. 1.5 lakhs.
    • There is no limit on the maximum 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.

    • The sum assured for entry at less than 45 years of age will be 11 time the premium or a basic sum assured.
    • The sum assured for entry at an age greater than 45 years will be 7 times the annual premium or a basic sum assured.

    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:

    • Annual - 100%
    • Half yearly - 51%
    • Quarterly - 26%
    • Monthly - 8.8%

    Policy validity

    The policy validity will be the policy term provided all premiums are paid.

    Renewability

    NA

    Bonuses

    • Accrued reversionary bonus
    • Terminal bonus

    Other features

    • Free look period - 15 to 30 days from receiving the policy document
    • Grace period - 30 days for all payment modes except monthly. For monthly payment the grace period is 15 days.
    • If the policy lapses due to unpaid premiums, it can be revived within two years.
    • The policy also offers a surrender value which becomes payable after the payment of premiums for 2 to 3 years.

    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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