Kotak E-Assured Savings Plan is an online life insurance plan that is designed to help individuals achieve their financial goals together with protection. This savings cum insurance plan enables users to accumulate wealth to fulfil various financial objectives. This plan offers basic sum assured, accrued guaranteed yearly addition as well as guaranteed loyalty addition.
About Kotak Mahindra Life Insurance Company Ltd.: Kotak Life Insurance is a subsidiary of Kotak Mahindra Bank Ltd. The insurance company provides world-class products with high customer empathy. It is among the fastest growing insurers in India, providing solutions to more than 20 million lives across the globe, as on 31st March 2018.
(Note – All the information contained in this page has been sourced from the official website of Kotak Mahindra Life Insurance Company.)
The features of Kotak e-Assured Savings Plan are as follows:
How Kotak e-Assured Savings Plan Works: A policyholder has to pay premiums every year for the chosen premium payment term. Once the premium payment term expires, the policy shall continue till maturity. At maturity, the insured will receive guaranteed maturity benefit i.e. total of basic sum assured, accrued guaranteed yearly additions and guaranteed loyalty addition. The basic sum assured shall be based on the premium, policy period, premium payment term and the life insured's age. Death Benefit: In the event of the life assured’s demise during the policy period, the nominee will receive the following:
| PPT | Guaranteed Minimum Death Benefit (% of Basic Sum Assured |
|---|---|
| 5 years | 110% |
| 10 years | 120% |
Maturity Benefit: If the life assured survives the policy term, guaranteed maturity benefit shall be paid. This benefit comprises of:
| PPT | Guaranteed Yearly Additions as % of Cumulative Annual Premium |
|---|---|
| 5 years | 7% |
| 10 years | 10% |
| Criteria | Eligibility |
|---|---|
| Entry Age | Minimum - 3 years Maximum - 60 years |
| Entry Age | Minimum - 3 years Maximum - 60 years |
| Policy and Premium Payment Term | PPT Policy Payment Term 5 pay 10 / 15 years 10 pay 15 / 20 years |
| Annual Premium | Minimum: Rs. 20,000 Maximum: No limit, subject to underwriting |
| Premium Payment Option | Limited only |
| Premium Payment Option | Monthly, Quarterly, Half Yearly and Yearly |
| Modal Factor | Yearly - 100% Half Yearly - 51% Quarterly - 26% Monthly - 8.8% |
| Additional Features | Benefits | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| Convenient premium payment term & modes | Premiums can be paid on yearly, half-yearly, quarterly or monthly basis. There is an option to change the premium payment mode on the policy anniversary | ||||||||
| Additional Protection | |||||||||
| Policy Loan Facility | Loans can be availed up to 50% of Surrender Value, subject to a minimum loan amount of Rs. 10,000. | ||||||||
| Reduced Paid-Up Benefit | Once the policy acquires Surrender Value (if subsequent premiums are not paid within the grace period), the base plan along with riders (if any) will be converted into a Reduced Paid-Up | ||||||||
| High Premium Benefit | The insurer rewards policyholders paying higher premium by increasing Basic Sum Assured.
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An individual will have to submit certain documents to avail Kotak e-Assured Savings Plan. The documents include:
If the life assured commits suicide within a year from the date of policy issue, 80% of the premiums paid will be payable. If the suicide occurs within a year from the date of the policy’s revival when the revival is done within six months from the date of first unpaid premium, suicide exclusion shall not apply and the death benefit will be paid.
In case of suicide within a year from the date of revival, when the revival is done after six months from the date of first unpaid premium, the benefit paid shall be the higher of 80% of premiums paid or surrender value, if any, at the date of claim event.
Kotak e-Assured Savings Plan gives users the potential to grow their wealth, thereby enabling them to achieve various future financial goals. It provides affordable protection and helps individuals accumulate wealth through guaranteed benefits.
What are the premium payment modes for Kotak e-Assured Savings Plan?
Premiums toward Kotak e-Assured Savings Plan can be paid on a monthly, quarterly, half yearly or yearly basis.
What are the tax benefits of availing Kotak e-Assured Savings Plan?
Tax deduction of up to Rs. 1,50,000 can be claimed under Section 80C of the Income Tax, 1961, for the premiums paid toward Kotak e-Assured Savings Plan. The proceeds from policy are tax-free in the hands of the receiver under Section 10(10D) of the Income Tax Act, 1961.
Under what condition does insurance cover of Kotak e-Assured Savings Plan lapse?
For PPT of 5 years, the policy shall lapse if the premiums for the first two policy years are not paid within the grace period. For PPT of 10 years, the policy shall lapse if the premiums for the first three policy years are not paid within the grace period.
What is the policy loan facility on Kotak e-Assured Savings Plan?
One can avail loans up to 50% of surrender value, subject to a minimum loan amount of Rs. 10,000. The company will assess the interest rate from time to time. At present, the interest rate is 12.5% compounding half-yearly. However, it can be revised from time to time subject to the insurance regulator’s approval.
Which riders can be taken with Kotak e-Assured Savings Plan?
Kotak e-Accidental Death Benefit Rider is an add-on that can be availed with Kotak e-Assured Savings Plan. In the event of the demise of the life assured due to an accident during the benefit term of the rider, the rider sum assured shall be paid in lump sum to the nominee or legal heir. With the Kotak Term Benefit Rider, one can enhance the existing protection available under base plan at affordable rates. In case of the life assured’s death during the rider term, the sum assured will be paid in lump sum to the nominee or legal heirs.
What is the free look period of Kotak e-Assured Savings Plan?
The insured is offered a free look period of 30 days from the date of the policy's receipt. If the policyholder does not agree with any of the terms and conditions of the policy, the individual can choose to return the policy within 30 days. He or she will be entitled to a refund of the premium paid, after adjustment for the expenses related to stamp duty, medical examination and proportionate risk premium for the period of cover.
When does Kotak e-Assured Savings Plan acquire surrender value?
The insurance policy acquires a surrender value on the basis of the premium payment term chosen as well as the number of premiums paid:
