Kotak Saral Suraksha Plan

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Introduction/Overview

Kotak Saral Suraksha is a pure term life insurance policy that provides high life coverage at very low and affordable rates. It is an extremely simple insurance plan where the nominee receives a Death Benefit if the Life Insured passes away during the policy term, but no benefits are given if the Life Insured survives the policy term. The policy offers the Sum Assured as the Death Benefit, which is paid to the nominee, thus protecting the loved ones in case of the sad demise of the policyholder.

Key Features

  • The policy is a pure term insurance plan offering high life cover at very low costs.
  • The policy offers a choice of two policy terms, of five or ten years.
  • The policyholder has a choice to pay premiums as a single payment or over a period of five years.
  • The process for the purchase of the policy is hassle free and convenient for the policyholders with minimum paperwork and without the need for medical examinations.

Benefits

  • In the unfortunate event of the demise of the policyholder, the nominee receives a Death Benefit.  The Death Benefit in the case of the five year premium paying policy is the higher of:
  1. The Base Sum Assured, or
  2. Ten times the annualized premium, or
  3. 105% of all the premiums paid until the date of death.

The Death Benefit for Single Premium policies is the higher of:

  1. The Base Sum Assured, or
  2. 1.25 times the Single Premium.
  • Tax benefits are available on the premium paid and Death Benefit as per sections 80(C) and 10 (10D) of the Income Tax Act.

Product Specification:

 

Minimum

Maximum

Entry Age of the Life Assured (Last Birthday)

18 years

55 years

Maturity Age (Last Birthday) of the Life Assured

23 years

65 years

Policy Term (PT) in years

5 years

10 years

Premium Paying Term (PPT) in years

5 years

Single Payment

Premium Paying Frequency

Single, Yearly and Half- yearly

Sum Assured

Rs. 5000

Rs. 100000

 

Details About Premium

 

 

 

Sum Assured (Rs.)

 

Age (Yrs)

Policy Term (Yrs)

Premium Payment Term (Yrs)

5000

10000

15000

25000

50000

75000

100000

 

30

5

5

285

324

362

413

534

641

758

Annual Premiums (Rs.)

30

5

Single

651

782

891

1093

1517

1970

2365

30

10

5

373

434

494

590

815

1009

1226

30

10

Single

1053

1279

1476

1850

2703

3509

4357

 

Policy Details

Grace Period: There is a limited timeframe of 30 days from the due date of the unpaid premium to pay all dues.

Policy Termination or Surrender Benefit: For a Single Premium plan the policy acquires Surrender Value from the end of the first policy year.  For a five pay Limited Premium Plan with a Policy Term of 10 years, the policy acquires Surrender Value after premiums for the first two policy years have been fully paid. If the policy is not reinstated within the revival period, the policy is terminated. Termination of the policy also occurs on payment of the Death Benefit.

Free Look Period: Policyholders have a limited free look period of fifteen days from the date of receiving policy documents to review the policy. The timeframe is extended to thirty days if the policy was sold through distance marketing. If the policyholder does not wish to continue with the policy, then he or she can cancel the policy. The customer will receive a refund of the premium paid minus a proportionate premium for the risk borne by the company, including as any extra expenses, such as towards a medical examination or stamp duty charges.

Inclusions

  • For Limited premium payment modes if premiums for the first two policy years are not paid within the Grace Period, the policy will lapse. For Regular payment plan, if premiums are not paid within the Grace Period, the policy will lapse.

Additional Features or Riders

  • The revival of a lapsed policy is possible if the policyholder submits a request for reinstatement within a timeframe of two years from the date of the first unpaid premium.
  • The policy acquires Reduced Paid-up Value if subsequent premiums are not paid within the Grace Period after the policy acquires Surrender Value. Paid-up Value is not applicable on Reduced Paid- up Value is only applicable on five year limited premium policies with a policy term of ten years. It is not applicable on Regular premium payment policies.

Exclusions

  • The term insurance cover is void if the person insured, whether sane or insane at the time, commits suicide within one year from the start of the policy cover or reinstatement. The company will refund 80% of the premiums paid until the date of death, to the nominee. In case the Life Insured commits suicide within six months of reviving the policy, the nominee will receive the Death Benefit. If the Life Insured commits suicide within a year of the revival of the policy, the nominee will receive the higher of 80% of the premiums paid or Surrender Value.

Documents Required

The policyholder has to fill up an ‘Application form’ with photo identity proof (Passport, PAN Card or Driving License) and income proof in the form of a copy of the latest ITR or Form 16 or copies of the last three months salary slips.