Kotak Life Early Defined Guaranteed Earnings Plan

Eligibility Criteria for Kotak Life Early Defined Guaranteed Earnings Plan

Features of the Early Defined Guaranteed Earnings Plan

Here are the key features of the plan:

• Guaranteed Income: The plan offers guaranteed income payouts over the policy term, as long as the policy conditions and premium payments remain in effect.
• Two Plan Options: Policyholders have a choice of:
• Insta Income: It involves initial cashback and income disbursements.
• Early Income: The income payouts following the deferment.
• Early Income Start: Guaranteed income will be provided since the 13th policy month or after the deferment period.
• Insta Cashback: The Insta Income feature offers cashback of up to 50% of the annualised premium, payable shortly after the policy is issued.
• Long-Term Income: Depending on the chosen income benefit period, income can be paid for up to 40 years.
• Accrual Facility: Policyholders can accumulate guaranteed income and draw it back later in life. The balance accrues interest at the RBI reverse repo rate.
• Life Insurance Cover: The policy will ensure the nominee receives financial security in the event of the policyholder's death during the policy period.
• Health and Well-being Benefits: Value-added services, including telemedicine, health consultation, and wellness programs, are provided at no additional cost.

Kotak Life investment plans offer flexible options to suit different risk profiles and investment horizons.

Benefits of the Early-Defined Guaranteed Earnings Plan

Below are the benefits of this plan:

1. Survival Benefit

   • Insta Income Option: Insta Cashback would be paid upon issuing policies. Guaranteed income is paid at the expiry of the deferment period, continuing until the policy terminates.
   • Early Income Option: Guaranteed income if not utilised during a deferment period commences at the end of the deferment period and lasts for the chosen income period.

2. Maturity Benefit

   In case of survival till maturity by the life insured:

   • Sum Assured on Maturity, plus
   • Accumulated Guaranteed Income (when accrual option is selected)

3. Death Benefit

   The nominee is entitled to the maximum of: in the event of death during the policy term, the sum will be paid:

   • Sum Assured on Death + accumulated guaranteed income (when taken as accrued)
   • 105% of total premiums paid
   • Surrender value

Riders Under the Early-Defined Guaranteed Earnings Plan

Policyholders can enhance protection with optional riders:

• Kotak Term Benefit Rider: Provides additional life cover.
• Kotak Accidental Death Benefit Rider: Pays a lump sum on accidental death.
• Kotak Permanent Disability Benefit Rider: Pays benefits if permanent disability results from an accident.
• Kotak Life Guardian Benefit Rider: Waives future premiums if the policyholder dies.
• Kotak Accidental Disability Guardian Benefit Rider: Waives premiums if accidental disability occurs.
• Kotak Critical Illness Plus Benefit Rider: Pays benefits upon diagnosis of specified critical illnesses.

Policy Details of the Early Defined Guaranteed Earnings Plan

The following is the policy details of the Early Defined Guaranteed Earnings Plan:

1. Grace Period:

   It allows payment of overdue premiums at 15 days (monthly mode) and 30 days( other modes) and keeps the policy active.

2. Revival:

   A reduced or lapsed paid-up policy may be renewed for 5 years against the first unpaid premium, with payment of dues and interest.

3. Free Look Period:

   A 30 day time is given to the policyholder to re-examine and cancel the policy in case of dissatisfaction.

4. Surrender:

   Guaranteed Surgery Value (GSV) is available after 2 years of premium payments. After 1 year, the Special Surrender Value (SSV) can be taken. At the time of surrender, the GSV or SSV rate is paid.

5. Loan:

   This is usually a loan up to 80% of the surrender value, subject to policy conditions.

   The best investment plans support wealth creation, retirement planning, and tax efficiency goals.

Exclusions Under the Early Defined Guaranteed Earnings Plan

Suicidal Cover

If the life insured dies due to suicide within 12 months from policy commencement or revival, the insurer will pay 80% of the premiums paid or the surrender value, whichever is higher, subject to policy conditions.

Total Permanent Disability (TPD)

TPD benefits apply only if the Permanent Disability Benefit Rider is selected and are subject to rider terms.