Kotak Smart Life Plan

About Kotak Premier Life Plan

The Kotak Smart Life plan is a limited-pay, non-linked participating life insurance plan. The individual has the freedom to choose a bonus option as per his/her requirement and offers protection up to the age of 75 years. The plan also provides guaranteed maturity benefits along with bonus pay-outs and additional riders. Death benefit is paid at the event of death of the policyholder during the policy term.

Let’s understand this plan in brief before getting into its details:

How Does the Plan Work?

The individual decides the basic sum assured, premium paying term, and the frequency of the premium paying term. Based on these details and your age and gender, the premium payable is determined. The individual also decides the bonus options (that is, the cash pay-out or paid-up additions).

Now, let’s understand the other benefits offered with this plan.

A) Survival Benefits
The survival benefits shall be payable as per the chosen bonus option, as explained here:

• Cash Pay-out: Cash bonus (if declared) is payable every year from the end of the 1st policy year till the end of the policy term or death or surrender, whichever is earlier.
• Paid-Up Additions: Cash bonus (if any) are utilized to purchase paid-up additions, which will keep on accumulating throughout the policy term. The cash bonus for basic sum assured and paid-up additions will be declared separately, which in turn will get utilized to purchase paid-up additions at the end of the policy year.

B) Death Benefits
In case of the untimely demise of the policyholder during the policy term, the benefit pay-out shall vary based on the selected bonus option. If all the due premiums have been paid, the death benefit shall be:

• Under the cash bonus pay-out option: Sum assured on death + interim bonus (if any) + terminal bonus (if any)
• Under the paid-up additions option: Sum assured on death + accrued paid-up additions (if available) + interim bonus (if any) + terminal bonus (if any)

Here, sum assured on death is the highest of:

• 11 times of annualised premium (including extra premium, if any)
• Basic sum assured, which is the guaranteed maturity benefit  
• 105% of all premiums paid (including extra premium, if any) till the date of death

C) Maturity Benefit
On survival till the end of the policy term and all due premiums are paid, the following maturity benefit will be payable and the policy will get terminated.

• Under the cash bonus pay-out option: Basic sum assured + cash bonus (if any) + terminal bonus (if any)
• Under the paid-up additions option: Basic sum assured + cash bonus (if any) + accrued paid-up additions (if available) + terminal bonus, if any

Riders

The Kotak Smart Life plan offers the following riders:

• Kotak Term Rider (UIN: 107B003V03)
• Kotak Accidental Death Benefit Rider (UIN: 107B001V03)
• Kotak Permanent Disability Benefit Rider (UIN: 107B002V03)
• Kotak Life Guardian Benefit (UIN: 107B012V02)
• Kotak Accidental Disability Guardian Benefit (UIN: 107B011V02)
• Kotak Critical Illness Plus Benefit Rider (UIN: 107B020V01)

Why Should You Buy This Plan?

Besides the benefits mentioned earlier, here are some other features of the Kotak Smart Life plan:

• Tax benefits: Premiums paid under the plan would be exempt from tax under Section 80(C). The death/maturity/survival benefit received would be tax exempt under Section 10(10D) of the Income Tax Act.
• Vesting in case of minor life: If the policy has been taken on the life of a minor, the policy shall automatically vest on him/her with effect from the date of completion of 18 years of age and the life insured will become the policyholder from such date.
• Grace period: The plan provides a grace period of 30 days for yearly, half-yearly, and quarterly modes and 15 days for monthly mode from the due date of unpaid premium. If the premium is not paid within the grace period, the policy will get lapsed.
• Policy revival: A lapsed or a reduced paid-up policy can be revived (with or without riders) within 2 years from the last unpaid premium date.

Who Should Buy This Plan?

The minimum entry age to buy this plan is 3 years, while the maximum entry age is 50 years for 6-pay and 15-pay modes; 55 years for 8-pay and 10-pay modes; and 54 years for the 12-pay mode. The Kotak Smart Life plan proves to be an ideal plan for it accommodates your requirements for a comfortable today by asking for limited premiums, whilst securing a bright tomorrow by offering high protection cover along with additional benefits.