Kotak Assured Income Plan

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Kotak Assured Income Plan - Overview

Kotak Assured Income Plan is a comprehensive savings-cum-protection plan. It provides a life cover for 30 years which helps protect the family from uncertainties in the absence of the life insured. The insurance premium has to be paid for a limited term of 10 years. The plan guarantees a yearly additional income for a fixed period of 15 years which functions as a second income. 

Kotak Assured Income Plan - Key Features

  • Long-Term Cover: The plan provides a life insurance cover for a fixed period of 30 years. This helps in securing the future of the loved ones if something unfortunate was to happen to the life insured leading to his/ her absence.
  • Limited Premium Paying Term: The insurance premiums have to be paid for a limited term of 10 years. However, the duration of the insurance cover is for 30 years.
  • Assured Annual Income for 15 years: The plan provides an assured annual income for a period of 15 years, provided the insurance policy is in force and the policyholder survives the policy term. The annual payouts begin from the end of the 15th policy year as a percentage of the Basic Sum Assured depending on the annual premium contribution.
  • Guaranteed Maturity Benefit: In addition to the assured annual income payouts, the plan also gives a lump sum benefit at the end of the policy term i.e. at the end of 30th year. This additional lump sum on maturity ranges from 104% to 110% of the Basic Sum Assured depending on the entry age.
  • Multiple Premium Paying Modes: The insurance premium for the plan can be paid in one of 4 available frequencies, namely, yearly, half-yearly, quarterly or monthly
  • Additional Protection through Riders:The plan offers optional riders which can be availed by paying additional nominal premiums. These help in enhancing the scope of protection under the plan.
    • Kotak Accidental Death Benefit Rider (ADB): This rider pays a lump sum benefit on the accidental death of the life insured
    • Kotak Permanent Disability Benefit Rider (PDB): This rider pays the benefit in instalments if the life insured becomes permanently disabled as a result of an accident
    • Kotak Life Guardian Benefit Rider (LGB): This rider waives off the insurance premiums on the death of the life insured. All future premiums are then paid by the insurance company – Kotak Mahindra Old Mutual Life Insurance Limited.
    • Kotak Accidental Disability Guardian Benefit Rider (ADGB): This rider waives off the insurance premiums if the life insured becomes disabled. All future premiums are paid by the insurance company – Kotak Mahindra Old Mutual Life Insurance Limited. 

Kotak Assured Income Plan - Benefits

  • Death Benefit: In the event of the passing away of the life insured during the tenure of the policy, the Death Benefit (Sum Assured on Death) is paid to the nominee. The assured annual income payouts cease on the death of the life insured. 

The Sum Assured on Death is higher of the following:

  • 106% of Basic Sum Assured
  • Guaranteed Maturity Benefit
  • Maturity Benefit: In the event of survival at the end of the policy term, the policyholder receives a Guaranteed Maturity Benefit in a lump sum. This is in the range of 104% to 110% of the Basic Sum Assured.
  • Tax Benefits: Tax benefits are available under Section 80C and Section 10(10D) of the Income Tax Act, 1961 

Kotak Assured Income Plan - Product Specifications 

 

Minimum

Maximum

Entry Age (last birthday)

0 years

60 years

Maturity Age (last birthday)

-

90 years

Policy Term (fixed)

30 years

Basic Sum Assured

10 times of the Annual Premium

Premium Payment Term

10 years

Premium Payment Mode

Yearly, Half-yearly, Quarterly, Monthly

Premium Amount

Rs. 15,000 per annum

No limit

Premium Modal Factor

The following modal loadings are used to calculate the instalment premium:

  • Yearly: 100%
  • Half-yearly: 51%
  • Quarterly: 26%
  • Monthly: 8.8%

 

Kotak Assured Income Plan - Policy Details 

Policy Loan: The plan provides a loan facility. A loan can be availed up to 80% of the Surrender Value after completion of 3 policy years. 

Grace Period: The insurance company provides a grace period from the premium due date for payment of unpaid premium. This period is 30 days in case of yearly, half-yearly and quarterly modes of premium payment, and 15 days in case of monthly payment mode. 

Policy Lapse: If the insurance premium remains unpaid during the grace period in the first 3 policy years, the insurance policy lapses (together with riders) from the due date of the unpaid premium. No benefits are paid in such circumstances. 

Policy Revival: A lapsed or reduced paid-up insurance policy can be revived only within 2 years from the due date of the first unpaid premium. If, however, a lapsed policy is not revived during the revival period, the policy is terminated without payment of any benefits. 

Exclusion 

Suicide: In the event where the life insured commits suicide, whether medically declared sane or insane, within:

  • 12 months from the date of policy issue, 80% of the insurance premiums paid will be payable to the nominee
  • 12 months from the date of policy revival, when the revival is done within 6 months from the date of first unpaid premium, suicide exclusion will not apply. The Death Benefit will be paid to the nominee.
  • 12 months from the date of policy revival, when the revival is done after 6 months from the date of first unpaid premium, the Death Benefit payable will be higher of 80% of the premiums paid or Surrender Value at the date of claim event 

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