Kotak Life Insurance offers a range of insurance plans to its customers, ranging from protection plans to wealth creation plans. One of the popular insurance plans from the company is Kotak Assured Savings Plan. It is a good option for people looking for affordable protection while accumulating wealth to achieve future financial goals. The policyholder stands to receive guaranteed benefits, such as Guaranteed Yearly Additions, Guaranteed Loyalty Additions, etc. These benefits accrue during the policy term and are paid at maturity or death.
Kotak Assured Savings Plan: Review and Features
Kotak Assured Savings Insurance Plan is a savings and investment plan offered by the company. Here are some of the key features of this insurance plan.
- Guaranteed Maturity Benefit:If the policyholder survives the policy term, he/she is eligible to receive the guaranteed maturity benefit at the end of the term. It is the sum of basic sum assured, accrued guaranteed yearly additions and guaranteed loyalty a
- Guaranteed Yearly Additions:The life insured is eligible to receive guaranteed yearly additions every year during the policy term. It is calculated as a percentage of the cumulative annual premium and accrues through the premium payment term. The guaranteed yearly additions are paid out at death or maturity as a part of the maturity or death benefit.
- Guaranteed Loyalty Addition: All Kotak Assured Savings Plan policyholders are eligible for the Guaranteed Loyalty Additions. It is expressed as a percentage of the cumulative annual premium and is directly proportional to the policy term. Guaranteed loyalty addition is paid as a part of the maturity or death benefit.
- Higher Benefits for Longer Premium Commitment:The guaranteed yearly additions and guaranteed loyalty addition increase with the increase in the Premium Payment Term (PPT). You stand a chance to get higher benefits if you go for a longer premium commitment. You can also enjoy tax benefits under Section 10 (10D) and Section 80C of the Income Tax Act, 1961.
- Enhance Protection by Choosing Insurance Riders:You can choose to enhance the level of protection offered by an insurance plan by adding one or more insurance riders. There are five insurance riders from the company that you can add to the Kotak Assured Savings Plan. They are Kotak Term Benefit Rider, Kotak Accidental Death Benefit Rider, Kotak Permanent Disability Benefit Rider, Kotak Life Guardian Benefit Rider and Kotak Accidental Disability Guardian Benefit Rider.
Kotak Assured Savings Plan: Details
| Particulars | Details |
| Policy Name | Kotak Assured Savings Plan |
| Policy Type | Savings and Investment Plan |
| Entry Age | 3 years-60 years |
| Policy Term |
|
| Maturity Age | 75 years |
| Sum Assured | Determined on the basis of minimum premium amount, entry age, Policy Term (PT) and Premium Payment Term (PPT) |
| Premium Paying Term | 5, 6, 7, 10 years |
| Premium Payment Modes | Yearly, Half-yearly, Quarterly, Monthly |
| Annual Premium | Rs. 20,000 |
| Premium Modal Factors |
|
| Riders for Additional Benefits |
|
Kotak Assured Savings Plan: Benefits and Eligibility
Here are some of the major benefits associated with the Kotak Assured Savings Plan.
Maturity Benefit: If the policyholder survives the policy term, he/she is eligible to receive the Guaranteed Maturity Benefit if the all the due premiums have been paid.
Guaranteed Maturity Benefit = Basic Sum Assured + Accrued Guaranteed Yearly Additions + Guaranteed Loyalty Addition
Death Benefit: In the case of the death of the Life Insured before the end of the policy term, the nominee will receive the death benefit from the insurer.
Death Benefit = Basic Death Benefit + Guaranteed Yearly Additions (as on the date of death)
If the age of the policyholder is less than 50 years at entry, the Basic Death Benefit is the higher of:
- 11 times the Annual Premium
- Guaranteed Minimum Death Benefit
- 105% of the premiums paid (till the date of death)
If the age of the policyholder is greater than or equal to 50 years at entry, the Basic Death Benefit is higher of:
- 7 times the Annual Premium
- Guaranteed Minimum Death Benefit
- 105% of the premiums paid (till the date of death)
| Premium Payment Term | Guaranteed Minimum Death Benefit (as % of Basic Sum Assured) |
| 5 years | 110% |
| 6 years | 112% |
| 7 years | 114% |
| 10 years | 120% |
Guaranteed Yearly Additions: If you opt for the Kotak Assured Savings plan, you will be paid Guaranteed Yearly Addition every year during the premium payment term. It is calculated as a percentage of the cumulative annual premium paid every year and the rate is based on the premium payment term. Guaranteed Yearly Additions accrue during the policy term and are paid at maturity or death.
| Premium Payment Term | Guaranteed Yearly Additions(as % of Cumulative Annual Premium) |
| 5 years | 7% |
| 6 years | 8% |
| 7 years | 9% |
| 10 years | 10% |
Loan Facility: You can avail a loan of up to 50% of the Surrender Value of the policy subject to a minimum of Rs. 10,000. The policy is unconditionally and fully assigned to Kotak Life Insurance as security for the loan and interest repayments during the loan. Currently, the interest rate for this loan facility is 12.5% compounding half-yearly.
Guaranteed Loyalty Addition: Guaranteed Loyalty Addition is a benefit paid to the policyholder at maturity of the insurance plan. The rate is based on the opted Premium Payment Term (PPT) and is calculated as a % of the Basic Sum Assured.
| Premium Payment Term | Guaranteed Loyalty Addition |
| 5 years | 10% |
| 6 years | 12% |
| 7 years | 14% |
| 10 years | 20% |
FAQs
Q1. Can I avail a loan against my Kotak Assured Savings Plan?
Ans. Yes. You can avail a loan of up to 50% of the surrender value of your Kotak Assured Savings plan. The minimum limit for the loan is Rs. 10,000. The interest rate is 12.5% compounding half-yearly at present and is revised from time to time subject to the IRDA approval. When you avail the loan facility, your policy is fully assigned to the company as security for the loan and interest repayments during the period of the loan. Any benefit payouts before the end of the term or maturity are paid only after deducting the outstanding loan amount or payable interest.
Q2. What happens if the policyholder commits suicide?
Ans. If the life insured commits suicide within a year of the date of issue of the policy, 80% of the premiums paid will be payable. However, if the policyholder commits suicide within one year of the date of revival of the policy (and revival is done within 6 months of the first unpaid premium) then the suicide exclusion is not applicable.
Q3. What is a Reduced Paid-up Policy?
Ans. Once an insurance plan has acquired a surrender value and the subsequent due premiums are not paid on time or within the grace period then the Base policy along with Riders is converted into a Reduced Paid-Up Policy. The policyholder is not eligible for Guaranteed Loyalty Addition and Guaranteed Yearly Additions. However, rider benefits will be available subject to terms and conditions
Q4. Can I calculate my insurance premium for the Kotak Assured Savings Insurance Plan online?
Ans. Yes, you can calculate your insurance premium online. Just visit the company’s website at www.insurance.kotak.com and follow the steps mentioned here:
- Go to the Kotak Life Insurance official website
- Click on the ‘Insurance Plans’in the header
- Then, select the ‘Tools & Calculators’ option
- Select the option ‘Traditional Plans’from the Product Category drop-down
- Select the option ‘Kotak Assured Savings Plan’ from the Product drop-down
- Click on ‘Proceed to BI’
- Provide the necessary details on the form and then Click on ‘Continue’
- You will get an estimated value of insurance premium excluding the modal factor loading
Q5. What happens if there is no nomination for an insurance policy?
Ans. If there is no nomination effected in an insurance policy then the benefit payout is made to the legal heirs. If the nominee dies during the term then also the benefit payout is made to the legal heir.