Times are uncertain and we have to do our best to be prepared for those times. Kotak Income Protection Plan helps you secure your family’s future in the most efficient way. The plan provides a monthly income which increases at a 6% compounding interest per annum for the remaining term of the policy in the event of your death. A lump sum amount will be paid to your family as well so that they can take care of immediate requirements.
Features of Kotak Income Protection Plan
- The plan ensures that the monthly income that you have chosen increases at 6% per annum compounding. This simply means that the monthly income will grow 106% every year end from the end of the 1st policy year.
- Preferred rates are available for female lives and non-smokers.
- 15 days free look period is offered and 30 days for policy solicited through distance marketing channels to return the policy if you are not happy with it.
- You can choose riders to enhance your benefits.
- The premium payment term is regular and limited pay of 12 and 15 years.
- The premiums can be paid on a yearly, half-yearly, quarterly and on a monthly basis.
- You get 30 days grace period to pay the premium due if the premium is to be paid on a yearly, half-yearly or on quarterly basis. If the premiums are to be paid on a monthly basis, you get 15 days grace period to pay the premium.
- Limited premium policies that are surrendered will be converted to reduced paid up policy.
Benefits of Kotak Income Protection Plan
- Guaranteed pay outs are offered for monthly income of 5 years.
- Assured benefit that is equal to 12 times the increased monthly income is paid to your dependent in the event of your untimely death.
- Riders are available with this term plan. They are Kotak Accidental Disability Guardian Benefit and Reduced Paid-up Benefit.
- Death benefit offered is the total assured benefit and increased monthly income payout and the higher of 10 times the annualised premiums or 105% of the premiums paid till the death.
- Assured benefit paid on death is followed by increased monthly income.
- Limited premium policies can be surrendered.
- You can avail tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.
Eligibility Criteria of Kotak Income Protection Plan
The eligibility criteria for this Kotak term plan are as follows:
- The minimum age at entry is 18 years and the maximum age at entry is 60 years.
- The maximum age at maturity is 70 years.
- Minimum annual premium is based on the monthly income chosen by you, your age, gender, smoking status, policy term and the premium payment option that you chose.
- The maximum premium limit is subject to the underwriting consideration.
- Policy term for regular pay is 10 to 30 years. For 12 pay option, the term is 17 to 30 years and for 15 pay option the term is 20 to 30 years.
Example of Kotak Income Protection Plan
Mr.Jai, is a 30 year old professional and he want to provide monthly income for his family in her absence. He chooses the Kotak Income Protection Plan. He is a non-smoker and he chooses for a monthly income of Rs.50,000 for a term of 20 years. His annualised premiums will be Rs.12,330. In the event he dies in the beginning of the 7th policy year, the assured benefit that will be received in lump sum is Rs.8,51,112.
- What are the policy term offered in this plan?
The policy term offered for regular pay is 10 to 30 years. For 12 pay option, the term is 17 to 30 years and for 15 pay option the term is 20 to 30 years
- What is the minimum monthly income level offered?
The minimum monthly income level offered is Rs.2,000.
- What are the death benefits offered by Kotak Income Protection Plan?
A. The death benefit offered is the total assured benefit and increased monthly income payout and the higher of 10 times the annualised premiums or 105% of the premiums paid till the death.
- Can I convert this policy to a reduced paid-up policy?
Yes, you can convert the policy to reduced paid-up policy after it acquires surrender value.
- Can I surrender my Kotak Income Protection Plan policy?
Yes, you can surrender the policy if you have chosen the limited premium payment option.
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GST of 18% is applicable on life insurance effective from the 1st of July, 2017