Kotak Smart Life Plan

Life insurance policies have been the cornerstone of financial planning among Indians, helping to sail through various life stages. Along the journey of life, you will encounter unexpected and planned financial commitments.

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Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

Kotak SmartLife Plan will steer you through the journey. Whether supporting your planned obligations like children’s education, their marriage, and retirement planning for your golden years, you can rely on the plan to deliver. Kotak SmartLife Plan will not only nurse your dreams and aspirations but will protect your near and dear ones in your absence.

What is Kotak’s Smart Life Plan?

Kotak SmartLife Plan is a limited pay participating endowment scheme with unique features making it a standout life insurance product. The plan offers flexible options to receive an annual cash bonus right from the end of the first policy year to meet your interim financial obligations. Alternatively, you can utilize the cash bonuses to accumulate wealth for bigger future goals and lead a stress-free, financially independent life when your income stream dries up. Listed below are some of the plan’s critical advantages.

  • It offers you protection for up to 75 years.

  • Conveniently choose the Cash Payout or the Paid-up Addition in cash bonuses.

  • Avail of the preferred cash bonus option from the first policy year onwards.

  • Enhance your coverage with tailored but optional riders at an additional premium.

Kotak SmartLife Plan - Eligibility

Parameters Particulars
Entry Age Minimum: 3 years (insured’s last birthday)
Maximum: (insured’s last birthday)
  • 6-pay and 15-pay: 50 years
  • 8-pay and 10-pay: 55 years
  • 12-pay: 54 years
Maturity Age 75 years (insured’s last birthday)
Policy Term 75 years minus the insured’s age at entry
Basic Sum Assured Minimum: Rs.2.5 Lakhs
Maximum: No limit, subject to underwriting acceptance
Premium Payment Term 6, 8, 10, 12, and 15 years
Premium Levels Minimum: . Maximum
6-pay: Rs. 40120 No limit, subject to underwriting acceptance
8-pay: Rs. 30955
10:pay: Rs. 26175
12-pay: Rs. 22778
15-pay: Rs. 19505
Premium Payment Mode Yearly, Half-yearly, Quarterly, and Monthly
Premium Modal Factor Yearly: 100%
Half-yearly: 51% Quarterly: 26%
Monthly: 8.8%

How Does Kotak Smartlife Work

The plan contours are flexible, involving you in every aspect of its design. Accordingly, you fix the basic sum assured, premium payment term, and frequency. Then, the plan takes shape based on your inputs and determines your payable premium. In addition, you give the final form to the insurance plan by choosing bonus options between Cash Payout and Paid-up Addition. Finally, your insurance plan delivers the following once your design is ready.

  • Cash Payout: Cash bonus is payable every year from the end of the first policy year until maturity, death, or surrender, whichever is earlier.

  • Paid-up Addition: The cash bonus component is Paid-up Addition, which accumulates during the policy term for a handsome corpus. In addition, you can redeem the accumulated value in cash, subject to the policy’s terms and conditions.

  • Maturity: You receive the basic sum assured plus the accrued Paid-up Addition, Cash Bonus, and Terminal Bonus depending on your chosen bonus option.

Kotak SmartLife Plan - Benefits

Let us study the various benefits of Kotak SmatLife Policy after clearly understanding the plan’s fundamentals.

  1. Death Benefit

    A lump-sum amount is payable to the nominee, provided the policy is not in default.

    • Cash Bonus Payout Option: The amount payable on the policyholder’s death is the sum assured, plus interim and terminal bonuses. In addition, five outstanding monthly cash bonus for choosing the monthly Cash Bonus option.

    • Paid-up Addition Option: The payout comprises the sum assured on death, accrued Paid-Up Addition, terminal, and interim bonuses, if available.

  2. Maturity Benefit

    The maturity value becomes payable in a lump sum after the life insured survives the policy term, and the policy terminates after payment.

    • Cash Bonus Payout Option: The payable maturity amount comprises the sum assured, the cash bonus, and the terminal bonus.

    • Paid-up Addition Option: You receive the sum assured, plus the accrued Paid-up Addition, Cash, and terminal bonus.

  3. Survival Benefit

    The Kotak SmartLife Plan offers survival benefits under all Cash Bonus options to the policyholder. In addition, the plan provides you with the flexibility to change the preferred Cash Bonus option at inception and switch to the Paid-up Addition from Cash-Payout.

  4. Premium Discount

    The Kotak SmartLife Plan offers several discounts to ease your purchase. For example, you get discounted premiums against the Basic Sum Assured in the following bands.

    • BSA Band-1: Rs.2.5 Lakhs to under Rs.5 Lakhs

    • BSA Band-2: Rs.5 Lakhs to under Rs.7 Lakhs

    • BSA band-3: Rs.7 Lakhs to under Rs.10 Lakhs

    • BSA Band-4: Rs. 10 Lakhs and above

    In addition, you get an additional discount of 1% per Rs.1000 BSA if the policy covers female life.

  5. Additional Rider Protection

    You can enhance the coverage of your Kotak SmartLife Policy by choosing from the wide range of riders on offer against an additional premium. Below is the list of critical optional riders to make your coverage stronger.

    • Kotak Term Rider: The rider provides an additional death benefit cover to the policyholder over and above the base plan’s death benefit.

    • Kotak Accidental Death Benefit: The rider ensures an additional lump sum payment over and above the death benefit if the life insured suffers an accidental death.

    • Kotak Permanent Disability: The insurer pays the premium installments on accepting a claim from the life insured for getting disabled in an accident.

    • Kotak Life Guardian Benefit: A waiver applies to premium payment on the policyholder’s demise without impacting the plan benefits.

    • Kotak Accidental Disability Guardian Benefit: The rider comes into play when the life insured suffers disability due to an accident. A future premium waiver applies, and the policy continues without affecting the plan benefits.

    • Kotak Critical Illness Plus Benefit: You receive the sum assured or in part if diagnosed with any of the listed critical illnesses. However, the payout is subject to complying with the policy’s underlying conditions.

  6. Tax Benefits

    Income tax exemption applies to all life insurance policy premiums during a financial year. Therefore, you can claim a deduction up to Rs.1.5 Lakhs under Section 80C of the Income Tax Act, 1961, towards the premium paid for Kotak SmartLife Policy. In addition, all the benefit proceeds are tax-exempt under Section 10 (10D), subject to complying with the underlying conditions.

Kotak SmartLife Plan – Suicide Exclusion

The following rules apply to Kotak SmartLife in the event of the life insured’s demise due to suicide.

  1. Within 12 Months: For suicidal death of the life insured within twelve months of the policy inception, 80% of the paid premiums till the incident is payable.

  2. After 12 Months: The following clauses come into play when the claim is for the policyholder’s suicidal death after 12-months from the commencement of the policy.

    • The death benefit is applicable without any reduction if the policyholder’s suicidal death occurs within 12-months from policy revival and within 6-months from the premium default.

    • In contrast, the amount payable is 80% of the cumulative premium until the incident of the policyholder’s suicidal death within 12-months of the policy revival. Then, however, claim within 6-months from the premium default.

FAQ's

  • Q: Does the Kotak SmartLife Policy offer a free look period?

    Ans: Yes, you can return the policy in the case of disagreement within 15 days of policy receipt. However, the period extends up to 30-days if you purchase the policy through distance marketing.
  • Q: What is the governing rule for vesting in the case of minor life in Kotak SmartLife Insurance Policy?

    Ans: The minor life insured becomes the policyholder with the vesting automatically transferred upon turning 18. Therefore, the life insured becomes the policyholder from such date.
  • Q: How much is the grace period for Kotak SmartLife policy renewal

    Ans: You get 30-days from the policy date to renew under all premium payment frequencies, barring monthly. The grace period is 15-days for policies with monthly premium frequency.
  • Q: What is the procedure to change the Cash Payout option to Paid-up Addition in Kotak SmartLife Policy?

    Ans: You can change the option on any policy anniversary but only once during the policy term. You must request in writing within three months before the anniversary date for the insurer to accept the change.
  • Q: What is the effect on death benefit for life insured’s demise during the grace period?

    Ans: The nominee gets the reduced death benefit to the extent of the due premium for a claim during the grace period.

˜Top 5 plans based on annualized premium, for bookings made through https://www.policybazaar.com in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

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Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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