Kotak Premier Endowment Plan is a long-term savings and protection plan that provides financial security to cope with unfortunate contingencies. This plan provides guaranteed additions in the first five policy years and bonuses start accruing from 6th year onwards, all this put together builds up a corpus for your secure future.
Eligibility Criteria |
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Entry Age |
18 - 60 years |
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Maximum Maturity Age |
70 Years |
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Premium Payment Term |
Regular Pay: Same as policy term |
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Policy Term |
Regular Pay |
10 – 30 years |
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Limited Pay |
5 Pay: 10 to 30 yrs |
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7 Pay & 10 Pay: 15 to 30 yrs |
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15 Pay: 20 to 30 yrs |
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Minimum Premium |
Regular Pay: Rs. 8,000 per annum |
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Limited Pay: Rs. 15,000 per annum |
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Minimum Basic Sum Assured at maturity |
Depends on minimum premium chosen, as mentioned above. |
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For example: In a Regular Premium plan with Rs 8,000 annual premium, following would be the Sum Assured for entry ages 18 & 60 yrs: |
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Age |
Policy Term |
Sum Assured |
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18 yrs |
10 yrs |
Rs 63,755 |
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18 yrs |
30 yrs |
Rs 2,00,904 |
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60 yrs |
10 yrs |
Rs 61,317 |
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Similarly, minimum Sum Assured for the limited premium payment term and policy term combinations are available. For details, please refer to the Calculator on our website. |
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Premium Payment Mode |
Yearly, Half yearly, Quarterly, Monthly |
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Premium Modal Factor |
Yearly - 100% , Half yearly - 51% , Quarterly - 26% , Monthly - 8.8% |
Maturity Benefit:- This plan provides for wealth creation during the policy tenure. On survival till the end of the policy term the following benefit will be payable.
Death Benefits:- In the unfortunate event of death during the term of the plan, the nominee will receive the following:
Feature |
Description |
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Settlement Options |
The plan provides the flexibility of receiving your maturity benefit as |
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Lump Sum payout: paid out immediately OR |
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Part of the maturity proceeds, i.e. up to 50% can be taken immediately and the balance proceeds will be paid out as equal installments over a period of 5 or 10 years as chosen. The installments will be inclusive of an interest rate of 4% p.a. |
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Bonuses |
Simple Reversionary Bonus |
At the end of each financial year, the company may declare a bonus expressed as a percentage of the Basic Sum Assured. These bonuses will be accrued from 6th policy year onwards till the end of the Policy Term and will be payable either on maturity or on death. |
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Interim Bonus |
In the event of a claim, part-way through a financial year or before declaration of the Simple Reversionary Bonus for the Financial Year in which such a claim is intimated, an interim bonus (if applicable) may be payable at such rate as may be decided by the Company. |
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Terminal Bonus |
The Company may decide to pay Terminal Bonus in case of death after 10 full policy years. This bonus may also be payable on Maturity and shall be a percentage of the Basic Sum Assured. Terminal Bonuses will not be payable on policies which have been made paid-up or surrendered. |
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Policy Loans |
The Company shall determine the rate of interest from time to time. Currently the interest rate is 12.5% compounding half yearly. |
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Loans shall be granted within the limit of 80% of the Surrender Value (higher of Guaranteed Surrender Value or Special Surrender Value) of the policy. |
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Death benefit payout option |
This option should be selected by the nominee in writing to the company at the time of intimating Claim. |
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The nominee can choose to take the payout as (1) Lump Sum payout immediately Or (2) Taking up to 50% of the Death Benefit immediately and the balance amount in equal installments over a period of 5 or 10 years. |
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This payout will be inclusive of an interest rate of 4% p.a. |
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Nominee will have an option to pre-close this facility. |
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Lapses |
For PPT less than 10 years, where the premiums for the first two policy years are not paid within the grace period and for PPT of 10 years or more, if the premiums for the first three policy years are not paid within the grace period, the policy shall lapse from the due date of the unpaid premium and no benefits will be payable. |
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Policy Revivals |
A lapsed or paid up policy can be revived within two years of the first unpaid |
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If the policy is revived within six months from the date of first unpaid premium. Extra premiums may be required based on the underwriting decision. |
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If a lapsed policy is not revived during the revival period, the policy will be terminated without paying any benefits. |
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Surrender: |
For policies with premium payment term of less than 10 years: The policy acquires Guaranteed Surrender Value after payment of full premiums for two consecutive policy year. |
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For policies with premium payment term of 10 years or more: |
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Guaranteed Surrender Value (GSV) |
A percentage of total premiums paid (excluding Service Tax, Rider premium and Extra Premium, if any). |
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In addition, the value of subsisting bonuses and Guaranteed Additions (if any) will also be payable. |
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GSV Factors as percentage of total premiums paid is given in the table below: |
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Year of Surrender |
GSV Factors (as % of Premiums paid) |
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2nd & 3rd year |
30% |
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4th to 7th year |
50% |
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8th year onwards |
50% + (Year of surrender – 7) x (Y - 50%) / (Policy Term – 7) |
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GSV factors as percentage of subsisting bonuses and Guaranteed Additions |
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Remaining |
GSV Factors (as % of subsisting bonuses & Guaranteed Additions) |
Remaining term |
GSV Factors (as % of subsisting bonuses & Guaranteed Additions) |
0 |
100.00% |
15 |
23.10% |
1 |
90.50% |
16 |
21.05% |
2 |
81.91% |
17 |
19.21% |
3 |
74.15% |
18 |
17.55% |
4 |
67.14% |
19 |
16.06% |
5 |
60.80% |
20 |
14.72% |
6 |
55.08% |
21 |
13.52% |
7 |
49.91% |
22 |
12.44% |
8 |
45.24% |
23 |
11.47% |
9 |
41.02% |
24 |
10.60% |
10 |
37.22% |
25 |
9.83% |
11 |
33.78% |
26 |
9.13% |
12 |
30.68% |
27 |
8.51% |
13 |
27.89% |
28 |
7.95% |
14 |
25.37% |
29 |
7.46% |
Reduced Paid-Up Policy |
After the policy acquires Surrender Value, if the subsequent |
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The policy will not be eligible for any future bonuses and guaranteed additions once it has been converted into paid up policy. |
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When the policy becomes Paid-up, Rider benefits may cease depending on the features of the rider. |
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If the Reduced Paid-Up policy is surrendered, the special surrender value (if any) will be based on the Reduced Paid-Up Basic Sum Assured. A Paid-Up policy may be reinstated within 2 years of the date of becoming Paid-Up. |
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Payout on maturity |
The Basic Sum Assured is reduced to Reduced Paid-Up Basic Sum Assured as follows: Basic Sum Assured × [(Total Premiums paid / Total premiums payable during the entire policy term)] |
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On maturity of the policy after being paid-up, the benefit payable will be the Reduced Paid-up Basic Sum Assured plus Accrued Guaranteed Additions & bonuses,(if any). |
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Payout on death |
The Reduced Paid-Up Death Benefit will be calculated as: (Total premiums paid)/ (Total premiums payable, during the entire policy term) x Minimum Death Benefit. |
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On death of the life insured during the policy term after being paid-up, the benefit |
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High Sum Assured |
You will get a premium discount for Basic Sum Assured levels of `5 lacs & above. The discount rate will be of `2 per 1000 Basic Sum Assured. |
If the Life Insured under the Policy, whether medically sane or insane, commits suicide, within one year of the date of reinstatement of the Policy, the Policy shall be void and the Company will only be liable to pay the higher of 80% of premiums paid or the surrender value.
Tax benefits under the policy will be as per the prevailing Income Tax laws and they are subject to change in the tax laws
Know claim process of kotak premier endowment plan
Kotak Mahindra Old Mutual Life Insurance Ltd is a joint venture between Kotak Mahindra Bank Ltd., its affiliates, and Old Mutual. Kotak Mahindra is one of India's leading banking and financial services organizations, offering a wide range of financial services that encompass every sphere of life. Old Mutual is an international long-term savings, protection and investment group.
Robinhood is known for its user & customer centric approach. We take care of all the phases of insurance, whether you've bought the policy from us or not.