Kotak Classic Endowment Plan
Product Info
UIN
107N082V01
Status
Active
Launch Date
10/10/2013
Withdrawn Date
Product Overview
Kotak Classic Endowment Plan is a long-term protection cum savings plan that offers protection benefit while earning Bonuses during the policy term.
Product Description
- Participating endowment plan offering protection up to the age of 75 years.
- This plan can earn yearly bonus from 1st policy year.
- Convenience to pay premiums as per affordability.
- Flexibility to choose from wide range of term options as per suitability.
COMPARE & BUY SIMILAR PLANS
Unique Features
- Limited premium pay traditional endowment plan.
- Plan provides 5% guaranteed bonus for the initial 5 years of the sum assured.
- At maturity customer will get Sum assured+ Accumulated guaranteed bonus of 5% for 5 years + Reversionary bonus declared by the company from the 6th year + Terminal bonus, if any.
Eligibility Criteria
| Eligibility Criteria | |||||
|---|---|---|---|---|---|
| Entry Age | Regular pay | Limited Pay | PT/PPT combination of 15/7 years | ||
| Min- 0, Max- 55 years | Min - 0 years, Max - 60 years (except for PT/PPT combination of 15/7 years) | Min - 0 years, Max - 58 years | |||
| Maturity Age | Min: 18 years, Max: 75 years | ||||
| Premium Payment Term | Regular Pay: | Equal to Policy Term | |||
| Limited Pay: | 7 years for policy term 15 years | ||||
| Policy term less 5 years | |||||
| Policy Term | 15 to 30 years, | ||||
| For minors, minimum term will be greater of; 15 years or (18 years minus age at entry as on last birthday | |||||
| Premium Payment Option | Regular and Limited pay | ||||
| Minimum Premium | Regular Pay: Rs 7,000 | ||||
| Limited Pay: Rs 7,000 (except for PT/PPT combination of 15/7 years) | |||||
| PT/PPT combination of 15/7 years: Rs 12,000 | |||||
| Maximum Premium | No limit, subject to underwriting | ||||
| Premium Payment Mode | Yearly, Half yearly, Quarterly, Monthly | ||||
| Modal Factor (% of annual premium) |
The following modal loadings will be used to calculate the installment Premium. | ||||
| Yearly - 100% | |||||
| Half yearly - 51% | |||||
| Quarterly - 26% | |||||
| Monthly - 8.8% | |||||
| Minimum Sum Assured on maturity |
Age | Policy term | Premium payment term |
Sum Assured on maturity (Rs.) | |
| 0 year | 30 years | 30 years | Rs. 1,92,413 | ||
| 0 year | 30 years | 25 years | Rs. 1,80,366 | ||
| 55 years | 15 years | 15 years | Rs. 86,687 | ||
| 60 years | 15 years | 10 years | Rs. 61,071 | ||
| 58 years | 15 years | 7 years | Rs. 73,584 | ||
OneInsure App Benefits
Store Digitally | Get Premium Reminders | Service and Claim assistances | Empower Nominee
Product Benefit
| Benefit | Description | |||||
|---|---|---|---|---|---|---|
| Death Benefit | In case of an unfortunate event of death of the life insured during the term of the plan, your nominee will receive the following: | |||||
| Sum Assured on death + | ||||||
| Bonuses accrued as on the date of death | ||||||
| The above Death Benefit is subject to a minimum of 105% of total premiums paid till date of death (excluding any extra premiums). | ||||||
| Sum Assured on death is defined as higher of: | ||||||
| 11 times annual premium, or | ||||||
| Sum Assured on maturity | ||||||
| Maturity Benefit | On survival till the end of the policy term (PT), Maturity Benefit will be paid. The Maturity Benefit payable is: | |||||
| Sum Assured on maturity, + | ||||||
| Accrued reversionary bonus (if any), + | ||||||
| Terminal bonus (if any). | ||||||
Other Policy Features
| Feature | Description | |||||
|---|---|---|---|---|---|---|
| Settlement Options | The plan provides the flexibility of receiving your maturity benefit as | |||||
| Lump Sum payout: Paid-out immediately OR | ||||||
| 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. | ||||||
| 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. | ||||
| 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. | |||||
| 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 halfyearly. | |||||
| 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. | ||||||
| Death benefit payout option | This option should be selected by the nominee in writing to the company at the time of intimating Claim. | |||||
| 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 | ||||||
| This payout will be inclusive of an interest rate of 4% p.a. | ||||||
| Nominee will have an option to pre-close this facility | ||||||
| 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. | |||||
| Policy Revivals | A lapsed or paid up policy can be revived within two years of the first unpaid premium. |
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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. | ||||||
| If a lapsed policy is not revived during the revival period, the policy will be terminated without paying any benefits. | ||||||
| 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. | |||||
| For policies with premium payment term of 10 years or more: The policy acquires Guaranteed Surrender Value after payment of full premiums for three consecutive policy years. |
||||||
| Guaranteed Surrender Value (GSV) | A percentage of total premiums paid (excluding Service Tax, Rider premium and Extra Premium, if any). | |||||
| In addition, the value of subsisting bonuses and Guaranteed Additions (if any) will also be payable. | ||||||
| GSV Factors as percentage of total premiums paid is given in the table below: | ||||||
| Year of Surrender | GSV Factors (as % of Premiums paid) | |||||
| 2nd & 3rd year | 30% | |||||
| 4th to 7th year | 50% | |||||
| 8th year onwards | 50% + (Year of surrender – 7) x (Y - 50%) / (Policy Term – 7) Where, Y: 70% for Regular Premium Paying Term; 80% for Limited Premium Paying Term |
|||||
| GSV factors as percentage of subsisting bonuses and Guaranteed Additions (if any) is given in the table below: |
||||||
| Remaining term to maturity |
GSV Factors (as % of subsisting bonuses & Guaranteed Additions) | Remaining term to maturity |
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 premiums are not paid within the grace period the policy will be converted into a Paid-Up policy by default. |
|||||
| The policy will not be eligible for any future bonuses and guaranteed additions once it has been converted into paid up policy. | ||||||
| When the policy becomes Paid-up, Rider benefits may cease depending on the features of the rider. | ||||||
| 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. | ||||||
| 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)] | |||||
| 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) | ||||||
| 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 | |||||
| On death of the life insured during the policy term after being paid-up, the benefit payable will be the Reduced Paid-up Death Benefit plus Accrued Guaranteed Additions & bonuses,(if any) |
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| High Sum Assured Discount |
You will get a premium discount for Basic Sum Assured levels of Rs.5 lacs & above. The discount rate will be of Rs.2 per 1000 Basic Sum Assured. | |||||
Add-ons
- Kotak Term/Preferred Term Benefit :
Provides an additional protection over and above the Minimum Death Benefit. - Kotak Accidental Death Benefit :
Lump sum benefit paid on the accidental death. - Kotak Permanent Disability Benefit :
Installments paid on admission of a claim on becoming disabled due to an accident. - Kotak Critical Illness Benefit :
Portion of Basic Sum Assured (maximum 50% of Basic Sum Assured) payable on the admission of a claim on a critical illness. - Kotak Life Guardian Benefit :
Remaining premiums will be paid on behalf of the policyholder in case of his / her death. - Kotak Accidental Disability Guardian Benefit :
Remaining premiums paid on behalf of the policyholder in case of accidental disability.
Exclusions
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
Tax benefits under the policy will be as per the prevailing Income Tax laws and they are subject to change in the tax laws
Claim Process
Know Claim Process of Kotak Classic Endowment Plan
Company Overview
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.
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