Kotak Assured Income Accelerator Plan

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Introduction/Overview

Kotak Assured Income Accelerator Plan is a traditional Endowment Assurance plan with increasing guaranteed incomes to provide peace of mind in future and to secure the family through life insurance coverage

Key Features

  • It is a non-participating plan with limited premium payment option
  • Guaranteed Payouts from the end of the PPT to the end of the policy term at an increasing rate

Benefits

  • Guaranteed Incomes increasing every year @ 5%, 6% or 7 % depending on the PPT and premium amount is paid every year after the expiry of PPT
  • The rate of Guaranteed Income ranges from 7% to 13% of the base SA
  • On maturity, Guaranteed Maturity Benefit as a % of basic SA depending on the entry age and policy term is paid to the policyholder
  • On death of the policyholder , the Sum Assured on Death is paid subject to a minimum of 105% of all premiums paid till death
  • The Sum Assured on death is higher of 11 or 7 times (depending on age)the annual premium or the Basic SA or the Guaranteed Maturity Benefit
  • Income tax benefit on the premium paid as per Section 80C and on the claims received as per Section 10(10D) of the Income Tax Act.

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

0 years

60 years for 7 & 10 PPT

55 years for 15 PPT

Maturity Age (Last Birthday)

18 years

85 years

Policy Term (PT) in years

15, 20 and 30

Premium Paying Term (PPT) in years

7, 10, 15

Premium Paying Frequency

Annual, half-yearly, quarterly, monthly

Yearly Premium

15,000

No limit

Sum Assured

10 * Annual Premium

 

Details About Premium

Annual premium in Rupees

 

Age

30 years

40 years

Premium

25,000

50,000

Sum Assured

250,000

500,000

Total Guaranteed Incomes received till Maturity

325,440

666,750

 

Policy Details

Grace Period: 15 days’ grace period is allowed for premium payment in monthly mode and 30 days in other modes. If policyholder fails to make payment within the grace period, the policy lapses

Policy Termination or Surrender Benefit: Policyholder is allowed to surrender the policy provided 2 or 3 years’ full Premium has been paid. The Surrender Value will be higher of the Guaranteed Surrender Value or the Special Surrender Value.

GSV = GSV Factor * Basic premiums paid excluding the Guaranteed Incomes already paid

Free Look Period: If you would not be pleased with the coverage, and terms and conditions of the policy, you have the option of canceling the policy within 15 days of receipt of the policy documents, provided there has been no claim.

Inclusions

  • Loan is available under the plan to a maximum of 80% of the Surrender Value and for a minimum amount of Rs.10,000

Additional Features or Riders

  • There are 4 riders available under the plan:
  1. Kotak Term Benefit
  2. Kotak Accidental Death Benefit
  3. Kotak Life Guardian Benefit’
  4. Kotak Accidental Disability Guardian Benefit

Exclusions

  • In case of suicide committed within 12 months of policy inception only 80% of premiums paid are returned to the nominee. In case of suicide within 12 months of revival, higher of 80% of premiums paid or acquired Surrender Value is paid

Documents Required

Policyholder has to fill up an ‘Application form/ proposal form’ with accurate medical history along with the address proof and other KYC documents. Medical examination may be required in some cases, based on the sum assured and the age of the person.