Kotak Premier Endowment Plan

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Kotak Premier Endowment plan is a traditional Endowment plan developed with a long term perspective to build a strong corpus for the policyholder and his family. This Endowment plan also provides life insurance coverage.

Kotak Premier Endowment Plan - Key Features

  • It is a non-participating plan with regular and limited premium payment option
  • Guaranteed Additions are paid annually for the first five policy years
  • Bonuses accrue from the 6th policy year onwards
  • Interim Bonus, Simple Reversionary Bonus, Terminal Bonus and the Guaranteed Additions increase the corpus substantially. 

Kotak Premier Endowment Plan - Benefits

  • Guaranteed Additions @ 5% of Sum Assured are paid in the first five policy years
  • On death of the policyholder, the Minimum Death Benefit plus accrued Guaranteed Additions + accrued Reversionary Bonuses + Terminal Bonus, if any, is paid.
  • The Minimum Death Benefit is higher of the basic SA or 11 or 7 times (depending on age) the annual premium or 105% of all premiums paid till date of death.
  • On Maturity, basic SA + accrued Guaranteed Additions + accrued Reversionary bonuses + Terminal Bonus, if any, is paid.
  • Under the Settlement option, 50% of the Maturity Benefit can be availed on maturity, and the balance can be taken in a series of regular instalments over a period of 5 or 10 years.
  • The nominee can also exercise the Settlement Option in case of unfortunate demise of the life insured.
  • 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. 

Kotak Premier Endowment Plan - Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

18 years

60 years 

Maturity Age (Last Birthday)

-

70 years

Policy Term (PT) in years

10

30

Premium Paying Term (PPT) in years

Regular Pay – equal to policy term

Limited Pay – 5, 7, 10, 15

Premium Paying Frequency

Annual, half-yearly, quarterly, monthly

Yearly Premium

Regular Pay - 8,000

Limited Pay – 15,000

No limit

Sum Assured

Depends on premium, age, term and PPT

 

Details About Premium

Annual premium in Rupees

Age

Policy Term

Premium

Sum Assured

18 years

10 years

8000

63,755

18 years

30 years

8000

200,904

60 years

10 years

8000

61,317

 

Kotak Premier Endowment Plan - Policy Details

Grace Period: 15 days’ grace period is allowed for premium payment in monthly mode and 30 days in other modes.

The policy lapses if the insured surpasses the grace period to make payments.

Policy Termination or Surrender Benefit: Policy taker is allowed to surrender the policy provided that he or she pays the complete premium for 2 or 3 years’.

The Surrender Value will be higher of the Guaranteed Surrender Value or the Special Surrender Value.

GSV = GSV Factor * Basic premiums paid including GSV of the accrued Guaranteed bonuses and Additions.

Free Look Period:

Those who have opted for the policy, but are not yet sure about the terms and conditions of the policy have fifteen days so as to know the policy thoroughly before confirming. After this period the policyholder can also cancel the policy if they have yet not claimed any amount.

Inclusions

The loan is provided under the plan to a maximum of 80% of the Surrender Value with a minimum amount of Rs.10,000.

Add-ons or Riders

There are six riders available under the plan:

  • Kotak Term / Preferred Term Benefit
  • Kotak Accidental Death Benefit
  • Kotak Permanent Disability Benefit
  • Kotak Critical Illness Benefit
  • Kotak Life Guardian Benefit’
  • Kotak Accidental Disability Guardian Benefit 

There is a discount in premium for choosing high coverage of 5 lakhs and above @ 0.2% of the SA

Exclusions

The nominee gets only 80% of the premium if the policyholder commits suicide within 12 months of the taking up the policy. Moreover, in another case, if the policyholder commits suicide within 12 months of revival, then the user gets to receive higher of the Surrender Value or premiums paid. 

Documents to take the policy

To take the policy, you need to fill up a proposal or an Application form along with accurate medical history as well as documents supporting your address and other KYC documents. You might also require medical examination in certain cases depending on the age of the person opting for the policy or the sum assured.

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Frequently Asked Questions:

1: What are the Guaranteed Additions offered by the policy?

During first five years of the policy, Guaranteed Additions at 5% per annum on the Basic Sum will be added; this is paid at the time of death or on maturity.

2: From which year I get to avail the Bonuses? 

You get to avail the bonuses from the sixth year onwards.

3:  What is the premium payment term?

Following is the premium payment term:

  • Regular Pay: Same as policy term
  • Limited Pay: 5, 7, 10 & 15 years

4:  What is the entry age?

The policy allows people lying in the age slot of 18-60 years to take up the policy.

5:  What are the different modes of Paying the Premium?

There are four modes of paying the premium such as Yearly, Half-yearly, Quarterly, and Monthly.

6: What is the Premium Modal Factor?

Premium Modal factor is categorized as: Yearly - 100%, Half yearly - 51% , Quarterly - 26% , Monthly - 8.8%

7:  Is there a discount offered for choosing high premiums?

Yes, there is a discount for choosing high coverage’s such as 5 Lakhs and above @0.2 % of the sum assured. 

8: What if the policyholder commits suicide within one year of taking the policy?

In such cases, the nominee receives 80% of the premiums paid by the policyholder. However, if the suicide is committed after the revival of the period, then the higher of the sum assured or 80% of the premium is paid.

9: What if I wish to discontinue the policy after a month of taking up the policy?

The policy offers a free-look period of 15 days and after this period you are allowed to quit. Wherein, this is not feasible after a month.

10: Can we choose from different premium payment term offered by the plan?

Yes, you have the leverage to choose among limited premium or regular premiums payment for 5, 7, 10 or 15 years for numerous Term combinations.