Kotak Premier Endowment Plan

Entry Age

18 - 60 years

Maximum Maturity Age

70 Years

Premium Payment Term
(PPT)

Regular Pay: Same as policy term
Limited Pay : 5 , 7 , 10 & 15 Years

Policy Term

Regular Pay

10 – 30 years

Limited Pay

 5 Pay: 10 to 30 yrs

7 Pay & 10 Pay: 15 to 30 yrs

  15 Pay: 20 to 30 yrs

Minimum Premium

Regular Pay: Rs. 8,000 per annum

Limited Pay: Rs. 15,000 per annum

Minimum Basic Sum Assured at maturity

Depends on minimum premium chosen, as mentioned above.

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:

Age

Policy Term

Sum Assured

18 yrs

10 yrs

Rs 63,755

18 yrs

30 yrs

Rs  2,00,904

60 yrs

10 yrs

Rs 61,317

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.

Premium Payment Mode

Yearly, Half yearly, Quarterly, Monthly

Premium Modal Factor

Yearly - 100% , Half yearly - 51% , Quarterly - 26% , Monthly - 8.8%

 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.

Policy Loans

The Company shall determine the rate of interest from time to time. Currently the interest rate is 12.5% compounding half yearly. 

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.

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).

High Sum Assured
Discount

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.